Meeting of the Parliament (Hybrid) 26 November 2020
I thank members who have spoken today for their helpful and constructive contributions. I will try to deal with the points that were made and the concerns that were raised in the time that I have. I have always believed that a cross-party consensus on the bill was possible, and I still want to achieve it. I understand that the views of some members have evolved, or are evolving, and I hope to convince everyone to vote for the bill by the time we get to stage 3.
We all care about our pubs and our communities. As Willie Rennie said, pubs are important community assets. I am willing to work with all parties in the chamber to make the bill a success and to engage with the Scottish Government and all parties through the amendment stages to improve the bill in a way that is consistent with its fundamental aims.
I thank the minister for his remarks and understand the reasons why he took some time to reach a decision. The decision that he made was the right one and I know that tenants will warmly welcome it. With the leadership that he has shown today, I believe that statutory rights and protections for Scotland’s tied pub tenants are now in sight.
I want to respond to Maurice Golden, who reminded us that 93 per cent of responses to my consultation supported the bill.
I accept that it is not a scientific study, but, as Sarah Boyack and others said, we should look at who responded to the bill at consultation and committee stage: the Scottish Licensed Trade Association, GMB Scotland, the Federation of Small Businesses in Scotland, and CAMRA, to name just a few.
The point is that the majority of evidence to the committee supported the bill, too, including 93 per cent of those who took part in an independent and confidential committee survey of tenants.
Maurice Golden said that the only study conducted on tied pubs was the Scottish Government’s CGA study. That is wrong. CGA conducted the survey that I quoted in my opening speech—a study of 200 Scottish tenants, which found that only 3 per cent of tenants had a positive sentiment towards their tie. I also refer him and others to the evidence of the Scottish Licensed Trade Association, in which it said that pubs had insufficient reserves to deal with Covid precisely because of the tied model.
This might not seem the biggest issue to everyone; I accept that. However, as Daniel Johnson and others said, to those who have been exploited, to those who are still being exploited, and to the 750 tenanted businesses, the law that governs the tie is of fundamental importance. It is not just about numbers; it is about the principle. I argue that 750 tied pubs is a significant number of businesses in Scotland.
I have never claimed that the bill is a panacea. I have never claimed that the bill will solve all problems of all pubs. However, it will make a difference. I also want to make it clear, including to Sandra White, that if tenants are happy with a tied agreement, the bill will allow it to continue. Equally, if the tied model is as robust and fair as the pubcos say, there will be no reason for anyone to report them to the adjudicator.
My argument is not that the tie should be abolished in all cases, but simply that tied agreements must be fair. Tenants will not need to exercise market rent-only rights should they not wish to do so, and the proposed levy will fall on the pub companies, not on individual publicans.
Lawson Mountstevens, the managing director of Star Bars & Pubs, said in The Times today that the bill is “unwarranted”. Star Bars is owned by Heineken, the second-biggest brewer in the world, which made more than €800 million profit in the first half of the year—which is certainly more than our tied publicans made. He forgot to say that his company has just been fined £2 million for repeated breaches of the pubs code for England and Wales. Still pubco lobbyists say that the bill tries to solve a problem that does not exist. They speak with no credibility on the issue.
Opinion is divided. Scotland’s publicans want to know whose side the Parliament is on. Is it the side of tied pub tenants, the small businesses that are working day in and day out, the consumers who want choice at the bar and the workers who understand that reform can open tied pubs up to our brewing industry, or is it the side of the pubcos—the multinationals that extract more than their fair share from the Scottish economy?
In voting for the bill, Parliament will be siding with the creators, innovators and grafters who make our pubs so special. We are standing up for the little guy. We are standing up for small businesses and Scottish workers, not offshore pubcos, hedge funds and global brewing giants.
The other day, I read someone who was lobbying for the pubcos saying that the bill made them want to cry. What they are doing to publicans—who are putting their heart and soul into a business, and struggling to make the minimum wage, who are amassing mountains of debt because their tied deal unravels and who cannot make a decent living out of a profitable pub because so much wealth is extracted so unfairly—should make them want to cry.
The bill is fundamentally about fairness, choice and jobs—fairness for tied tenants, choice for consumers and action to protect jobs in Scotland’s pubs and Scotland’s brewing industries. It allows Scotland’s publicans to keep more of the profit that their pubs make in the Scottish economy and gives the leverage that they need to get a better deal. For all those reasons, I ask the Parliament to support the bill.