So the new statutory code for the relationship between pub companies and their tenants, has now been published by the Government.
Are you convinced it will work? Mmmm...I aint!
I feel we have been down this road before with the beer orders, that created the 'big six' in the first place. A totally ill-thought piece of legislation, that was rammed through last time.
This Government has 'previous' and I do not feel happy with their interference. Let's be honest about the beer orders.It was a right cock-up!
They bleat: " A tied licensee must not be worse off than a free of the tie licensee."
But hang on! Will these pubco's not still be taking more profits from pubs, than is fair or sustainable? Profits that they 'cream off', which prevents tenants making a decent living and eventually in many, many cases has lead to 1000's of pub closures.
I am far from being an expert on this subject. However, how can the government legislate to take a tied lease boozer from a 45% to a 65% gross profit margin?
I was lead to believe by respected licensees of the trade that this difference was the pubco's profit! So how can this work?
How on earth can passing these profits to the lessee and taking it away from the pubco be facilitated?
OK, perhaps I am being a little 'over the top' here. But that is how I honestly see it and I am hoping for you to comment on these thoughts.
Nah,I am not convinced. All this "A tied licensee must not be worse off than a free of the tie licensee" talk. It seems like a load of electioneering to me.
Are there local county council elections on the horizon? I do believe they are in a few days time. He says so cynically!