Meeting of the Parliament (Hybrid) 23 March 2021
I welcome the amendments in this group, which concern a part of the bill that is crucial to landlords and tenants. It is clear that that remains the case from the discussions that I have had with stakeholders since stage 2, so it is right that we are able to debate the issue this evening.
It is important that the market-rent-only provisions are fair for both landlords and tenants. That is why I lodged amendments at stage 2 to allow the Scottish ministers to set out in the code the circumstances in which a market-rent-only lease may not be offered. The development of the code will, of course, be subject to consultation but, as I have said, my strong inclination is that investment should be one of those circumstances. I want to reassure pub-owning companies that Scotland is open for business and welcomes investment in Scottish tied pubs. I want pub-owning companies to have confidence and to continue to invest in this important sector.
My amendment 9 will provide assurance to the sector that the Scottish Government is committed to protecting the position of pub companies with regard to investment. The amendment strengthens my stage 2 amendments on MRO leases and reflects the conversations that I have had with stakeholders—landlords, tenants and, of course, Mr Bibby—about this element of the bill. I believe that amendment 9 has strong support and will improve the balance of the bill.
My stage 2 amendment deliberately included the word “may”, before specifying the circumstances in which an MRO lease may not be offered. It provides flexibility in relation to when an MRO lease has to be offered. The default position remains that a pub-owning business will be required to offer an MRO lease.
Amendment 13 would make it a requirement for the code to set out the circumstances in which an MRO lease need not be offered. In my view, that would go too far and would remove the flexibility that the Economy, Energy and Fair Work Committee endorsed by supporting my stage 2 amendment. Although I welcome the fact that Mr Simpson has acknowledged and incorporated the wording of amendment 9 in relation to investment, I do not think that amendment 13 is necessary. Amendments 8 and 12 are consequential to amendment 13.
I do not support Mr Simpson’s amendments. I ask members to support my amendment 9.