Meeting of the Parliament (Hybrid) 23 March 2021
After lodging my proposal for the bill, I received numerous reports that pub companies would seek to avoid a statutory code by adjusting their operating model. Whenever Parliament chooses to regulate an industry, that industry will—inevitably—react. However, the only reason for pub companies to seek to avoid fair and proportionate regulation would be if they knew that at least some of their business practices were incompatible with the principles that underpinned such regulation.
Pub companies in England and Wales made similar threats, many of which turned out to be exaggerated. The tied model continues to be a feature of the sector there, albeit that tenants are now empowered to seek a better deal.
I am concerned about the possibility of so-called Uberisation in tied pubs. That might attract other regulators’ attention, but the Parliament and any adjudicator that we create should be aware of the impact of the gig economy’s extension into the sector, particularly between royal assent and commencement.
The coming months will shine a light on pub companies’ conduct. Will they be willing to engage with fair and proportionate regulation or will they disadvantage some of their tenants in a deliberate attempt to avoid it?
I have listened to the arguments and particularly to the points that the minister made. I thank him for his reassurances, particularly about timescales. I accept that we must proceed as far as possible on the basis of good faith, so I will not press amendment 3. I will watch developments closely.
Amendment 3, by agreement, withdrawn.
Schedule 1—The Scottish Pubs Code