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Economy, Energy and Fair Work Committee 23 February 2021

23 Feb 2021 · S5 · Economy, Energy and Fair Work Committee

Item of business

Tied Pubs (Scotland) Bill: Stage 2

Lyle, Richard SNP Uddingston and Bellshill Watch on SPTV

Am I going to be timed? During the pandemic, it has been evident that the hospitality industry has arguably suffered the most. With lockdowns, strict restrictions and limited support, the sector has been brought to its knees. The Tied Pubs (Scotland) Bill appears to want to damage the industry further by imposing levies on businesses that are already struggling; the countless small businesses that they support will also be affected. The Scottish market is substantially different from that of England and Wales, with one of the major differences being the number of tied pubs in each region. Tied pubs account for around 39 per cent of the market in England and Wales, which is nearly 20,000 pubs. In comparison, in Scotland, only 17 per cent of the market—750 pubs—is tied. Those statistics demonstrate multiple issues. At stage 1, the committee was clear that, on the balance of the evidence presented, we did not believe that there was sufficient evidence to progress the bill and all that it entails. The written evidence that we collected and the oral sessions that we held with representatives from all sides of the debate allowed us to be confident in our conclusion. Indeed, that was consistent with the Scottish Government’s 2016 study, which concluded that no one part of the sector is disadvantaged over any other. However, we are of course now at stage 2, so it is incumbent on us all to ensure that legislation enacted in this area is proportionate. It is vital that the bill does not lead to a large waste of taxpayers’ money and, crucially, that it does not further undermine the pub sector, which is currently on its knees, and prevent it recovering from the devastating impact of the pandemic. We must protect investment in the livelihoods of the many operators and individual licensees who rely on the support of pub companies in running their businesses and pubs. Why reinvent the wheel, and why invent a new code that has unworkable and potentially damaging provisions, when the voluntary code of practice, which was specifically designed to reflect the Scottish pub market, already exists and operates well? The intent of amendment 16 is to avoid all sorts of complicated factors with the bill and to develop a new code by first putting the existing code on a statutory footing. When the existing United Kingdom-wide voluntary code was adapted in 2016 as a Scotland-specific code, the minister at that time noted that that was very positive. The Scottish Arbitration Centre, which is located in Princes Street in the heart of Edinburgh, was opened in March 2011 by Fergus Ewing MSP, who was the Minister for Community Safety at that time. The centre promotes arbitration in the Scottish business community as an effective alternative to legislation, and promotes Scotland to the world as a place in which to conduct international arbitration. It is an independent, non-profit company, limited by guarantee. In its distinguished legal tradition and innovative legislation, and in having the Scottish Arbitration Centre, Scotland is well placed to compete globally as an attractive, cost-effective venue for arbitration. The bill is, in effect, a mishmash of the 2016 English regulations and the old Thatcher beer orders. It is not proportionate and, because of that, it is bound to be struck down by any legal test. Tenants of more than one in five pubs that are impacted—more than 150 premises—have written to the First Minister, desperately pleading with her not to let the bill go through. That should not be news to anyone. Before we voted at stage 1, one tenant said that the news that the matter was being discussed, coming at a time when their businesses were on their knees and they were still completely in the dark about when they could open again, made them want to cry. Why are we progressing the bill? It reflects badly on the committee and the Parliament that the bill could still become law. The voluntary code already exists and, as members can see, is extremely comprehensive. It guarantees fair and lawful dealing with tenants. Ingoing tenants are as prepared as they can be; they have total clarity in their agreement and in exactly what it entails. Ultimately, there should be no surprises. I do not know how long I spoke for, convener.

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Economy, Energy and Fair Work Committee 23 February 2021

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