Meeting of the Parliament (Hybrid) 26 November 2020
The debate on the Tied Pubs (Scotland) Bill has been lively—and not just here in the chamber, because it has generated a lot of strong views across the pub sector over the past couple of months. Although there is disagreement in the sector about the need for the bill, there is widespread recognition that the sector is facing severe challenges. Graham Simpson spoke about pubs being on their knees, and a number of members have highlighted their concerns about the future of the sector. Industry bodies have warned that two thirds of hospitality businesses could go to the wall.
However, when it comes to the merits of the bill, there are, as the Economy, Energy and Fair Work Committee heard, deeply polarised views on whether it would help the pub sector to recover from Covid or further damage the sector.
We have heard from those who argue in favour of the bill, including Neil Bibby, Daniel Johnson, Andy Wightman and Willie Rennie, that they want to ensure that tied tenants are treated fairly, that they enjoy a fair share of the rewards of the business and that they are no worse off than free-of-tie tenants. In particular, those who support the bill want to address concerns about the high cost of tied products, increased levels of rent, lack of transparency and examples of pub companies not complying with agreements.
Sarah Boyack highlighted the supply chain benefits that could arise if the increasing number of small independent breweries that are emerging in Scotland were put on a level playing field and could more easily get their products into the marketplace. It is clear that a number of organisations support the bill, including the SLTA, CAMRA and the Campaign for Pubs, among others.
However, those who are against the bill have also made a series of strong arguments. They have concerns that it will be costly and complex, and they point to the escalating costs of the pub code adjudicator’s office in England. They also point to the benefits of the existing tied pub model, which allows tenants access to their own pub for a relatively small investment, while benefiting from economies of scale and financial assistance, as we have seen during Covid lockdowns.
There are also benefits from the existing voluntary Scottish pubs code, which gives tenants many of the rights and protections that are set out in the Tied Pubs (Scotland) Bill, without any risk to jobs or investment.