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Economy, Energy and Fair Work Committee 02 March 2021

02 Mar 2021 · S5 · Economy, Energy and Fair Work Committee

Item of business

Tied Pubs (Scotland) Bill: Stage 2

Bibby, Neil Lab West Scotland Watch on SPTV

I thank those members who have agreed to withdraw or not move their amendments for doing so and for the spirit of their comments. As Michelle Ballantyne said, it was clear from last week’s meeting that the vast majority of those amendments were unlikely to gain support. It is preferable for the bill to be passed with as much consensus as possible, as I have said from the start of the process. I am happy to continue discussions with members who have indicated that they want to do so before stage 3. I acknowledge the helpful discussion that I had yesterday with Mr Golden and his indication that a handful of amendments might return at stage 3. I am certainly happy to engage with him in order to agree, I hope, on the best way forward for Scotland’s tied pubs. 08:30 I will speak to my amendments in the group and then to other, related amendments. The bill requires the Scottish Government to lay the regulations containing the code and appoint an adjudicator within a year of the day after the bill receives royal assent. The minister made it clear that, for various practical reasons, the Government’s view was that a longer maximum period should be provided for, both to take account of the challenges of current circumstances, such as dealing with the on-going Covid pandemic, and to ensure that the code is not rushed and is subject to full consultation. Amendment 1 will therefore increase the maximum period to two years. The Government’s view is reasonable and I am encouraged by the minister’s comments that the Government will work to make the code and appoint an adjudicator as soon as is possible and practical. That will not necessarily take the full two years that are allowed for by the amendment. Two years is the maximum that should be available, so I do not support amendments 148 to 151, which propose longer periods of between three and six years. I put on the record that concerns have been raised with me by the tenanted sector that a longer interim period between the bill being passed and the code and adjudicator being in place will open the door for pub-owning businesses to take steps to seek to avoid the code. I am considering whether steps could be taken, including an amendment at stage 3, to address those concerns, and I will continue my discussions on the matter with the industry and the minister. My amendments 2 and 3 will extend the review periods in the bill. The bill requires Scottish ministers to carry out a first review of the code and the adjudicator’s performance as soon as is practical after 31 March in the year following the one in which the adjudicator is appointed, and further reviews to be carried out every two years. Those review periods were set to allow any problems with the code or the adjudicator to be identified and acted on swiftly. However, the minister suggested that those review periods should be extended, and I agree that slightly longer periods would be beneficial. Amendment 3 will require the first period to be two years after 31 March in the year following that in which the adjudicator was appointed, and amendment 2 will require subsequent reviews every three years. I would have opposed the amendments in the group that propose longer periods or would have frustrated or altered the review process in other ways. I turn to the minister’s amendments in the group. Amendment 9 will allow for the imposition and the amount of the levy on pubcos to be appealed to the sheriff. The bill contains the ability to appeal a financial penalty and recover the cost of an investigation, but it does not provide for an appeal against the imposition of the levy. I am not aware that the similar legislation in England and Wales provides for such an appeal and I am not aware of any examples in similar legislation such as the Groceries Code Adjudicator Act 2013. However, the minister has explained that the reason for lodging amendment 9 is that it is felt that it is necessary in order to ensure that the bill is fair, proportionate and robust.

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Economy, Energy and Fair Work Committee 02 March 2021

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