Caught Between A rock And A Hard Place!

Caught Between a Rock and a Hard Place

Is this more evidence that Cable & Co have absolutely no idea what to do with the pubcos and the beer tie?

http://www.morningadvertiser.co.uk/General-News/Statutory-code-BISC-chairman-Adrian-Bailey-urges-Government-to-act-now

Consider this:

Whether tenants like it or not it is clear that whatever government decide to do – even if that something is nothing – there will be some form of collateral damage, albeit inadvertently, on parts of the sector. If government legislate and give tenants a MRO or a ‘tied tenant no worse off’ then some pubcos may not survive it. Punch for example are teetering on the brink of extinction and it will only take a small shove to send them over the edge. Whilst I accept most tenants will be safeguarded by their lease agreement, it still leaves an uncertain long term future for pubs as there may not be an automatic right to renew especially if there is a mass pub jumble sale.

And then we have other companies that currently do business with the pubcos - brewers (family and micro) suppliers, maintenance contractors, builders, logistic companies – the list is endless and many companies/people will be affected by changes in legislation.

We would argue that pubs will still need the services of these companies and that is of course correct but we all must agree there will most definitely be fall out if government legislate and much of it will not be pretty.

So back to Government’s dilemma.

I expect they realise the above and find themselves firmly between a rock and hard place: help small businesses and there will be collateral damage, much of it ugly and backed up I expect with legal challenges, or do nothing and continue to see pubs close, tens of thousands of people lose their jobs with ex publicans and their families relying on state handouts. 

My point I suppose is they’v e left it too long to make change.  They had the perfect opportunity in 2004 but failed (just like the beer orders) to make adequate provision for the sector as a whole and whatever they do now, almost ten years later, will undoubtedly have serious consequences for parts of the sector.

Fair Pint were right; the beer tie doesn’t work – I would argue it never has – and Cable & Co, even if we were to imagine there are no dark forces in play, must be struggling with the situation they now find themselves in. It’s simple really, whatever they do they lose either way.

For my part I say burn the bastards. They’ve taken too much already!