Meeting of the Parliament (Hybrid) 23 March 2021
I recognise and understand Mr Bibby’s worries about possible avoidance behaviour by pub-owning companies in the period before the code comes into effect. That issue has also been raised with me by the Scottish Licensed Trade Association. I reiterate my observation that it is inherently difficult to avoid a code that is not yet written, but I understand that the concerns are primarily about the timescale for the implementation of the code. I emphasise Neil Bibby’s point that the two years is very much a backstop; it is not, as he rightly said, a target and we are committed to putting the code in place as soon as possible with the appropriate consultation.
It is an area that is worthy of debate and discussion, so in that sense I am glad that Neil Bibby has lodged amendments 3 and 10 to give us the opportunity to debate them. As he laid out, the amendments place a duty on the adjudicator when first in office to begin an investigation into activities of pub companies in the period before the code comes into force. In the first instance, I am somewhat concerned that that might mean that the adjudicator would be diverted from their fundamental and important task of implementing the code as it applies to tied pubs in Scotland.
Moreover, I am concerned that the process of investigation that is required by amendment 3 could undermine the establishment of productive relationships between the adjudicator and the pub sector at their inception. We also need to establish a relationship of trust with all parties and, in that regard, I worry about the signal that that would send. Mr Bibby will recall that I have made that point directly to him.
I acknowledge the intentions behind amendments 3 and 10 and I thank Mr Bibby for talking them through with me, but I do not think that they are required, for the reasons that I have outlined. The amendment that I lodged at stage 2 that provided for the code to specify circumstances where a market-rent-only lease need not be offered and the proposals that we will shortly debate in group 4 are a better way to reassure pub-owning companies and encourage them to retain tied pubs. That is the fundamental concern that this set of amendments drives at.
The Government is committed to ensuring that the bill and the market-rent-only provisions are fair for landlords and tenants. I have been clear that the code will be subject to the fullest consultation, but it will also be informed by the behaviour of all parties in the intervening period before it comes into effect. I urge all stakeholders to recognise that and to continue to work constructively with one another and with the Scottish Government. On that basis, I ask Mr Bibby to consider withdrawing amendment 3.
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