Live Urgent Question on Pubs Adjudicator

Download Subtitles

Transcript

:00:00. > :00:00.investigation will be updated and they are notifying people where they

:00:00. > :00:10.have got to so far. Demand today has heavily outstripped supply and we

:00:11. > :00:23.must now move on. Urgent question. Mr Greg Mulholland. Will the

:00:24. > :00:34.Minister of State make a comment on the appointment of the pub code

:00:35. > :00:40.adjudicator? Mr Paul Newby has been appointed. I hope you will be

:00:41. > :00:45.congratulated on the role and thanks to all those who applied for this

:00:46. > :00:51.important position. An excellent and very strong field. Mr Newby will

:00:52. > :00:58.start full-time on May two and has already started work and has been

:00:59. > :01:03.very helpful with my officials. In making sure we have the pub code up

:01:04. > :01:09.and running and ready for the house. Paul Newby is a chartered surveyor

:01:10. > :01:13.with particular expertise in valuation and arbitration. Key

:01:14. > :01:18.skills of the pub code adjudicator. He has 30 years experience of the

:01:19. > :01:24.pub trade working with pub company landlords and pub tenants and I

:01:25. > :01:31.think going to be an excellent adjudicator. That is not a view

:01:32. > :01:36.shared by tenants groups who have been astonished by this appointment.

:01:37. > :01:44.Let's be clear, this appointment is of someone who is of our director --

:01:45. > :01:48.who is a director of a company who derives the vast majority of its

:01:49. > :02:01.income from the sources it is being required to regulate. In particular

:02:02. > :02:06.he has acted for Enterprise Inns, Marstons and punch. These companies

:02:07. > :02:10.are bullying and coercing tenants into signing away their rights to

:02:11. > :02:15.their pubs and the company is actively involved in selling of

:02:16. > :02:24.pubs. How can he be trusted to be impartial given that his Surrey for

:02:25. > :02:32.20 years has been dependent on those he is expected now to a --

:02:33. > :02:41.adjudicator pun. -- his salary for 20 years. Did he as a director

:02:42. > :02:46.declare how much of the income of the company he works for has been

:02:47. > :02:54.derived from the companies he will be adjudicated upon. How can tenants

:02:55. > :02:58.have any confidence in this appointment? Why has a chartered

:02:59. > :03:07.surveyor been appointed rather than someone from a legal background or

:03:08. > :03:10.an independent adjudicator will stop we don't know how great candidates

:03:11. > :03:16.there were and who made the final decision. This is a very worrying

:03:17. > :03:28.appointment, once again demonstrates either composite seat with pub:

:03:29. > :03:38.interest or a lack of understanding of the role. If this appointment is

:03:39. > :03:43.allowed to stand, this statutory reform will go the same way as the

:03:44. > :03:46.failed self-regulatory. It is a clueless appointment and it needs to

:03:47. > :03:56.be properly scrutinised by this house. I have to say, that was a

:03:57. > :03:59.disgraceful set of slurs and I would appreciate it if the honourable

:04:00. > :04:05.gentleman would be good enough to listen. Paul Newby was appointed

:04:06. > :04:10.absolutely in accordance with the usual ways of public appointments

:04:11. > :04:17.and I take very grave exception to any allegation that either me or

:04:18. > :04:27.anybody else has acted in anyway in properly or competently. Mr Newby

:04:28. > :04:36.hasn't just represented pub trade companies but also tenants. He has

:04:37. > :04:44.30 years of experience, effectively representing both sides. He is an

:04:45. > :04:50.experienced arbitrator and the great skills he brings to the position are

:04:51. > :04:59.not only his extensive experience of the pub trade industry but like many

:05:00. > :05:05.professionals he has the absolute ability to be fair and arbitrate

:05:06. > :05:11.fairly and the fact that he might be representing somebody does not mean

:05:12. > :05:17.to say that he is in their pay. He can act independently. Oh no. The

:05:18. > :05:23.honourable gentleman absolutely doesn't understand how professionals

:05:24. > :05:33.work and many of ours would take great exception in any event. This

:05:34. > :05:37.man, honourable members opposite would do better rather than to

:05:38. > :05:43.hackle about somebody they don't even know. They haven't looked at

:05:44. > :05:47.his anti-seed and is and I made the announcement only yesterday in this

:05:48. > :05:51.place at about seven o'clock. I have no doubt that Mr Newby's

:05:52. > :05:57.considerable experience and abilities to be able to do this job

:05:58. > :06:02.are first rate and I take great exception at the idea there has been

:06:03. > :06:09.any impropriety at all. Somebody from a sedentary position said, do

:06:10. > :06:17.you know him? No, I don't know him. I didn't meet him until... I met him

:06:18. > :06:23.at the end of the procedure, as this house would expect after he was one

:06:24. > :06:29.of three names put forward quite properly by a full process which has

:06:30. > :06:33.been open and fair and I object very strongly on behalf of Mr Newby who

:06:34. > :06:44.will do this job with propriety and all things will be done properly.

:06:45. > :06:49.The Minister has behaved absolutely correctly and properly and what

:06:50. > :06:53.matters is Paul Newby's ability rather than anything else. Would she

:06:54. > :06:58.agree that he should look at the loophole that allows retailers and

:06:59. > :07:01.shop owners to buy a pub that requires planning permission but on

:07:02. > :07:07.the other hand if it reverts back to being a pub in those actually

:07:08. > :07:11.require planning position. His primary job is to implement and make

:07:12. > :07:18.sure the pub code is being complied with. When people invoke the pub

:07:19. > :07:25.code, his job will to be acting as a fey arbitrator. I have no doubt that

:07:26. > :07:32.he has those skills and experience. -- fair arbitrator. He has had

:07:33. > :07:37.experience of the pub companies but also tenants so he sees things from

:07:38. > :07:44.both sides and has all the skills and his appointment was made with

:07:45. > :07:48.great care and total propriety. The way the Minister announced the

:07:49. > :07:53.appointment yesterday didn't exactly inspire confidence as part of the

:07:54. > :07:57.shambolic proceedings that we experienced on the enterprise Bill

:07:58. > :08:02.on Sunday trading. She announced it in an intervention in the third

:08:03. > :08:08.reading after the Secretary of State could have mentioned it in his third

:08:09. > :08:11.reading speech. If nobody had mentioned the pub 's code at third

:08:12. > :08:17.reading, the announcement wouldn't even have been made then. Turning to

:08:18. > :08:21.the appointment of Paul Newby, I look forward to meeting him to look

:08:22. > :08:27.at the concerns raised by the honourable member for Leeds North

:08:28. > :08:31.West and by the pub 's tenants about the relationship between his current

:08:32. > :08:35.employers and large pub owning businesses. I don't think tenants

:08:36. > :08:43.will be at all reassured by what she said and I think the challenge for

:08:44. > :08:48.Mr Newby will be maintaining a level playing field between tenants and

:08:49. > :08:57.pub companies. How does she feel he can do this given the concerns

:08:58. > :09:00.raised by tenants? Somebody who has acted for companies such as Punch

:09:01. > :09:08.Taverns, Enterprise Inns and Marstons will act on their behalf in

:09:09. > :09:11.the future. She will be aware of concerns that the adjudicator should

:09:12. > :09:16.not be a chartered surveyor. Could she tell a house that she will be

:09:17. > :09:20.pursuing concerns about the attitude of the Royal Institute of chartered

:09:21. > :09:29.surveyors about Parolo rent assessment? -- parallel rent

:09:30. > :09:34.assessments. Concerns have been raised in the Lords and here and

:09:35. > :09:38.will she really raise those concerns with the adjudicator about pub

:09:39. > :09:42.companies offering shorter leases to make it impractical for the tenants

:09:43. > :09:53.to take up the market went only option. Will she raise the date for

:09:54. > :09:57.taking that opportunity up? We saw a shambolic approach to the initial

:09:58. > :10:01.consultation on the pub 's code which undermined trust from pub

:10:02. > :10:10.tenants. Back on track, concerns were raised by tenants associations.

:10:11. > :10:17.I should say to the House that I did advise the principal actors on this

:10:18. > :10:23.stage that on this occasion, I was really quite insistent that the time

:10:24. > :10:27.limits be kept. To be fair, the minister was well within her time.

:10:28. > :10:34.The honourable gentleman exceeded it by a small number of seconds. But he

:10:35. > :10:38.was closer than he has been in the past! No discourtesy is intended to

:10:39. > :10:42.the honourable gentleman. I think he has got the thrust of it across. But

:10:43. > :10:49.we really must from now on stick to the limits because otherwise it is

:10:50. > :10:51.not fair on backbench members. I think we are very clear what the

:10:52. > :10:57.honourable gentleman has got to say. Minister. Mr Speaker, we are

:10:58. > :11:00.confident that the pub code will be in its proper form and it will be

:11:01. > :11:05.laid at the appropriate time and that it will be up and running by

:11:06. > :11:08.June the 1st. Yesterday a press release had been prepared for

:11:09. > :11:11.publication today. I took the opportunity as you know to tell this

:11:12. > :11:17.House first. I thought that was a courtesy to the House and I thought

:11:18. > :11:21.the honourable gentleman had a proper interest in pubs and I

:11:22. > :11:26.thought he might be in some way grateful. But there you go, you live

:11:27. > :11:30.and learn. I very much welcome the governments action on this issue. As

:11:31. > :11:37.someone who represents a number of pubs which I have dealt with over

:11:38. > :11:42.the years, and having problems with the large pubcos that own them. When

:11:43. > :11:45.appointing the adjudicator, is it not important to have someone who

:11:46. > :11:48.understands both sides of the argument so that they can adjudicate

:11:49. > :11:54.fairly between them? Absolutely I agree. Paul Newby is not only a

:11:55. > :11:57.chartered surveyor locking he has this ability, he is a very

:11:58. > :12:01.experienced arbitrator, but it is his knowledge from both sides, and I

:12:02. > :12:10.know that he will be fair. I have complete confidence in him. He is

:12:11. > :12:14.very good news. We know the pubs adjudicator is effectively classed

:12:15. > :12:20.as England only, but just like Sunday trading, it could have an

:12:21. > :12:22.effect in Scotland, because pub companies made direct investment

:12:23. > :12:31.towards pubs in England and Wales. The Scottish Government... Could the

:12:32. > :12:41.minister make sure going forward but she takes effect of the possible

:12:42. > :12:44.effect of the proposals on Scottish pubs? I don't think there was a

:12:45. > :12:52.question but I am sure we can have a chat about it afterwards and discuss

:12:53. > :12:56.all these things. Can my honourable friend confirm that this appointment

:12:57. > :13:00.has been made absolutely on merit, fairly and without interference from

:13:01. > :13:03.government whatsoever? And the most important thing about this is how

:13:04. > :13:10.the person does the job and implements the pub code? I am

:13:11. > :13:14.grateful for his comments. He is absolutely right. It is an insult to

:13:15. > :13:17.the civil servants and all those who took part in the process, because

:13:18. > :13:21.they exercised the greatest care in making sure that the very best

:13:22. > :13:25.candidates were put forward to the final seven and then the next three

:13:26. > :13:32.before coming to the minister with a recommendation in relation to one. I

:13:33. > :13:37.take this not personally against me but against my civil servants and

:13:38. > :13:41.all that team, because this has been done. And he is very good news. He

:13:42. > :13:48.is fair and he knows what he is talking about. I have a recorded

:13:49. > :13:53.interest in a pub. I Chair a trust which owns the pub which John Clare

:13:54. > :13:58.played and sang in. It is not operating at the moment but it will

:13:59. > :14:04.be. Let's depersonalise this. I work very closely with The Pub Is The

:14:05. > :14:08.Hub. I do not know this man, I hope he does a good job, but unlike the

:14:09. > :14:13.supermarket person, I hope this man has teeth to do something about a

:14:14. > :14:16.vigorous brewing and pub industry in this country. It is all about

:14:17. > :14:22.getting the balance right. I must take exception about Christine, the

:14:23. > :14:27.grocery code June eight, who now has exactly the teeth he would like. She

:14:28. > :14:31.has not held back in her criticism as we saw recently. -- the grocery

:14:32. > :14:36.code adjudicator. She is doing a great job. In any event, the most

:14:37. > :14:40.important thing is that it was actually naming and shaming, as the

:14:41. > :14:44.honourable gentleman will know, that is sometimes the most powerful tool.

:14:45. > :14:48.But the code adjudicator is just that, an adjudicator to ensure

:14:49. > :14:54.fairness, and Paul Newby will do that. What involvement if any has

:14:55. > :14:58.the industry had on both sides in this selection process? I can assure

:14:59. > :15:03.my Noble Friend that no influence at all. We sought to someone with the

:15:04. > :15:09.right skills set, someone with experience as an arbitrator and who

:15:10. > :15:12.understood the trade and had the ability to see things from both

:15:13. > :15:22.sides. Paul Newby has all those skills and more. As a member of the

:15:23. > :15:29.business select committee which initiated one of the earlier

:15:30. > :15:34.inquiries, and Chair of the select committee, the report of which

:15:35. > :15:38.informed this particular piece of legislation, can I say to the

:15:39. > :15:43.minister, and I would not wish to prejudge the performance of Paul

:15:44. > :15:47.Newby, however, I would like to emphasise that there is huge

:15:48. > :15:52.disquiet amongst the tenants that I think the government, and I would

:15:53. > :15:55.ask the minister if she would look at that, would review the

:15:56. > :16:01.performance of the adjudicator after a certain period of time and keep up

:16:02. > :16:04.a dialogue with the tenants to ensure that their concerns are met.

:16:05. > :16:13.Otherwise this issue will not go away. I am grateful and I am pleased

:16:14. > :16:19.he has got an open mind. I think he will be impressed by Paul Newby. He

:16:20. > :16:22.is absolutely right. If anybody is not performing, then obviously that

:16:23. > :16:27.is concerning and measures can be taken. I think we also have to say,

:16:28. > :16:31.there are many tenants throughout England and Wales of pubs and we

:16:32. > :16:37.have got to be careful to make sure that groups genuinely represent the

:16:38. > :16:41.voice of all tenants. We must not let a few dominate the debate. It is

:16:42. > :16:51.important to be fair to both sides and make sure that all those tenant

:16:52. > :16:54.groups... Which is why I am a great fan of Camra, because I think they

:16:55. > :16:59.represent a large proportion of tenants. The pub is at the heart of

:17:00. > :17:04.many communities. I am really hoping that the appointment of Paul Newby

:17:05. > :17:12.will normalise these relationships and that we do not see, especially

:17:13. > :17:15.in the case of a pub near me, which suffered under an overbearing pub

:17:16. > :17:20.company, where you get a new tenants tempted in, running well, but then

:17:21. > :17:23.the prices escalate until they are forced to closure. And then we see a

:17:24. > :17:28.planning application for alternative use. I am really hoping this will

:17:29. > :17:32.normalise those relationships. I could not agree more. It is that

:17:33. > :17:36.change of culture which is so important. I agree with the

:17:37. > :17:39.honourable gentleman. We have all had examples in our own

:17:40. > :17:44.constituency. I have also fought to keep open pubs. I have not been

:17:45. > :17:51.successful in one instance although I was in another. It is about

:17:52. > :17:54.changing the atmosphere and making sure that pubcos act in a

:17:55. > :18:02.responsible manner not just to their tenants but to the broader

:18:03. > :18:06.community. I understand that the chartered surveyors Institute failed

:18:07. > :18:19.to respond on rent assessment guidance. Can the minister confirm

:18:20. > :18:22.how the adjudicator reconciles his position with that of such a

:18:23. > :18:29.professional bodies which I hear what my honourable friend says. But

:18:30. > :18:34.I think Paul Newby is going to be his own man. If I may say, as

:18:35. > :18:38.somebody who was a member of a professional body, the Bar Council

:18:39. > :18:42.often had a point of view which I personally completely disagreed

:18:43. > :18:46.with. He is a good man, he will be his own man, he will be fair, and he

:18:47. > :18:51.comes with a huge skill set. I am rather staggered that the honourable

:18:52. > :18:58.gentleman the member for Kilmarnock seems to have disappeared from the

:18:59. > :19:01.Chamber. The question is ongoing! The honourable member is the front

:19:02. > :19:05.bench spokesman for his party. He should stay for the exchange, he

:19:06. > :19:09.should not be tunnelling out of the Chamber in the middle of the

:19:10. > :19:19.exchanges. These courtesies really must be observed. It really want to

:19:20. > :19:22.do, obviously. Mr Speaker, the appointment brief for this role,

:19:23. > :19:32.which was issued in July last year, stated that...

:19:33. > :19:36.CHEERING It is very good that the honourable

:19:37. > :19:39.gentleman has been pulled back into the Chamber. I want the honourable

:19:40. > :19:47.member to have his question heard without intervention. The

:19:48. > :19:50.appointment brief for this role, which was issued in July last year,

:19:51. > :19:54.stated the appointment would be announced in January. Can my right

:19:55. > :19:59.honourable friend say why the announcement was delayed by two

:20:00. > :20:03.months? I think if I am right, and if I am wrong, I will apologise

:20:04. > :20:09.profusely, but if my memory is correct, it was because Mr Newby had

:20:10. > :20:16.to serve a period of his contract before he could give notice and so

:20:17. > :20:19.forth. But actually I believe the decision was made just before

:20:20. > :20:20.Christmas, but we could not announce it until now because of his

:20:21. > :20:46.relationship with his employer. That is inexplicable to me! Really

:20:47. > :20:50.inexplicable. But I am sure that nobody is laughing at the honourable

:20:51. > :20:57.lady whom I take extremely seriously and I want to hear what she has got

:20:58. > :21:03.to say. In my constituency, one brewery effectively has a monopoly

:21:04. > :21:07.with only 30 tied houses. This blocks local producers from selling

:21:08. > :21:12.to pubs on their doorsteps, and across Wales, more than 100 small

:21:13. > :21:16.breweries are in a similar position. Could the canonic context of Wales

:21:17. > :21:20.be considered by the newly -- by the newly appointed pubs adjudicator? I

:21:21. > :21:25.don't think that is really in his win it. He is really to ensure that

:21:26. > :21:28.anybody who raises a complaint under the pub code is able to be heard

:21:29. > :21:34.fairly. But the honourable lady raises an important point. We all

:21:35. > :21:36.know the huge importance of our pubs to communities. It is also

:21:37. > :21:44.absolutely the case that they should trade fairly. Can the minister tell

:21:45. > :21:48.us how many years this initial appointment is for? If it is a short

:21:49. > :21:53.period of time, there will be understandable concern that the

:21:54. > :22:05.adjudicator will not want to burn bridges with the pubco industry.

:22:06. > :22:07.Four years is the answer. Does this appointment by by the principles of

:22:08. > :22:14.the Committee on Standards in Public Life? Yes. Thank you. Order,

:22:15. > :22:17.business question, Mr Chris Bryant. Will the Leader of the House give us

:22:18. > :22:25.the forthcoming business? The Leader of the House. Mr Chris Grayling. Mr

:22:26. > :22:27.Speaker, can I start by in forming the House that the State Opening of

:22:28. > :22:29.the next session of Parliament will take place on Wednesday the eighth

:22:30. > :22:34.info of May.