Hansard

I am very pleased to be speaking on behalf of the Government in this final debate on the Tied Pubs (Scotland) Bill. Of course, as I have been at pains to emphasise throughout the process, it is not a Government bill; nonetheless, I thank my officials for their efforts in supporting me through the process.

I commend Neil Bibby for reaching this stage today. It is not easy to progress any bill in any circumstances, but that is particularly the case without the full support and assistance of the civil service. I congratulate him on getting his bill to this stage.

As we have heard, the bill will promote fair and equitable treatment in commercial agreements. It will also rebalance the relationship between pub-owning companies and tied pub tenants. The bill is an important step forward for the tied pub sector in Scotland and, as we have heard, it is the culmination of many years of work by Mr Bibby, who first proposed the bill towards the start of the parliamentary session. As we come to the end of the session, it seems fitting that we are considering whether to pass his bill.

I would like to thank Mr Bibby and his team for working closely with me and my officials, and for his on-going dialogue and openness. I would also like to thank the Economy, Energy and Fair Work Committee for its comprehensive consideration of the bill at stages 1 and 2.

I arrived at a different conclusion from the committee at stage 1, after giving a great deal of thought to the merits of the bill. Nonetheless, I appreciated the committee’s clear and thorough report and examination of the evidence and views at both stages1 and 2, which helped to influence the Government’s approach to the bill.

Whether we would support the bill’s progress was a balanced decision, but engagement—fairly late in the day—from a number of tied pub tenants led me to conclude that, if we were to follow the committee’s recommendations and undertake more investigative work, we would have concluded, in all probability, that we would need to introduce similar legislation.

Having mentioned that engagement, I would like to thank the sector, their representatives and the tenants who took the time to meet me during the bill process. Their approach has helped to influence our approach, too. In so far as I will be involved, I am keen for that spirit of co-operation between interested parties to continue into the bill’s implementation, should the Parliament pass it at decision time.

I have had an open-door policy because I have been keen to understand the issues across the industry as I considered Mr Bibby’s bill. I have listened carefully to all views and concerns. I hope that all parties see that approach reflected today in the amendments that have been agreed to. I have sought to ensure that the bill is fair and balanced for both landlords and tenants, for example through the amendments on MRO leases. Those not only preserve the tenant’s right to request an MRO lease but provide safeguards for pub companies, particularly in relation to investment. That balance for landlords and tenants is crucial for the bill and for the sector.

I understand that this is an extremely challenging time for everyone involved in the pub sector, which has been particularly hard hit by the pandemic. I have heard about the support provided to many tenants by their pub companies during this time. That clearly shows that the tied pubs model has tremendous value and an important place in the pub landscape. It also provides a low-cost entry point for people who are looking to take that first step into business. However, although I have heard both those points from tied pub tenants, the picture across the sector is not uniform. I have also heard from some tenants that they have not had that level of support and believe that change is required.

I want to preserve the benefits of the tied pubs system, which I recognise is an important model of tenure. I also want to ensure that there is a better balance in landlord-tenant relationships, and a proportionate approach.

If the bill is passed, the code will require to be implemented by whoever forms the Government after the election. The current Government is certainly committed to full and meaningful engagement if development of the code falls to us. The code will govern the relationship between pub-owning businesses and their tied tenants, and it will need to be created within two years. If that work falls to us, we will look to do it as soon as possible.

I would like to continue to work closely with stakeholders to ensure that the code works well for the whole sector. I want to see the sector recover and flourish; I hope that we all approach the bill in that spirit.

Once again, I congratulate Mr Bibby on reaching this stage.