Response 954654444

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Advice to new and renewing tenants

1. Should pub-owning businesses be required to provide information about pre-entry training to tenants?

Please select one item
Radio button: Ticked Yes
Radio button: Unticked No
Radio button: Unticked Don't know

2. To what extent do you agree or disagree that the code should require pub-owning businesses to do the following activities in relation to the tenant’s business plan?

Advise tenants to seek appropriate advice to develop a suitable business plan Strongly agree Radio button: Checked Strongly agree Advise tenants to seek appropriate advice to develop a suitable business plan Tend to agree Radio button: Not checked Tend to agree Advise tenants to seek appropriate advice to develop a suitable business plan Neither agree or disagree Radio button: Not checked Neither agree or disagree Advise tenants to seek appropriate advice to develop a suitable business plan Tend to disagree Radio button: Not checked Tend to disagree Advise tenants to seek appropriate advice to develop a suitable business plan Strongly disagree Radio button: Not checked Strongly disagree Advise tenants to seek appropriate advice to develop a suitable business plan Don't know Radio button: Not checked Don't know
Provide tenants with information on sources of independent advice Strongly agree Radio button: Checked Strongly agree Provide tenants with information on sources of independent advice Tend to agree Radio button: Not checked Tend to agree Provide tenants with information on sources of independent advice Neither agree or disagree Radio button: Not checked Neither agree or disagree Provide tenants with information on sources of independent advice Tend to disagree Radio button: Not checked Tend to disagree Provide tenants with information on sources of independent advice Strongly disagree Radio button: Not checked Strongly disagree Provide tenants with information on sources of independent advice Don't know Radio button: Not checked Don't know
Ask to see any business plan prepared by the tenant Strongly agree Radio button: Checked Strongly agree Ask to see any business plan prepared by the tenant Tend to agree Radio button: Not checked Tend to agree Ask to see any business plan prepared by the tenant Neither agree or disagree Radio button: Not checked Neither agree or disagree Ask to see any business plan prepared by the tenant Tend to disagree Radio button: Not checked Tend to disagree Ask to see any business plan prepared by the tenant Strongly disagree Radio button: Not checked Strongly disagree Ask to see any business plan prepared by the tenant Don't know Radio button: Not checked Don't know
Take into account the tenant’s business plan when negotiating the lease Strongly agree Radio button: Checked Strongly agree Take into account the tenant’s business plan when negotiating the lease Tend to agree Radio button: Not checked Tend to agree Take into account the tenant’s business plan when negotiating the lease Neither agree or disagree Radio button: Not checked Neither agree or disagree Take into account the tenant’s business plan when negotiating the lease Tend to disagree Radio button: Not checked Tend to disagree Take into account the tenant’s business plan when negotiating the lease Strongly disagree Radio button: Not checked Strongly disagree Take into account the tenant’s business plan when negotiating the lease Don't know Radio button: Not checked Don't know

Rent assessment statement and rent review

5. When preparing a rent assessment statement, should pub-owning businesses, or someone acting on their behalf, be required to take into account guidance on rent assessment issued by the Royal Institute of Chartered Surveyors (RICS)?

Please select one item
Radio button: Ticked Yes
Radio button: Unticked No
Radio button: Unticked Don't know

Right to request a rent review

6. To what extent do you agree or disagree that tenants should be able to request rent reviews in the following circumstances?

The rent has not been reviewed within the past 5 years Strongly agree Radio button: Checked Strongly agree The rent has not been reviewed within the past 5 years Tend to agree Radio button: Not checked Tend to agree The rent has not been reviewed within the past 5 years Neither agree or disagree Radio button: Not checked Neither agree or disagree The rent has not been reviewed within the past 5 years Tend to disagree Radio button: Not checked Tend to disagree The rent has not been reviewed within the past 5 years Strongly disagree Radio button: Not checked Strongly disagree The rent has not been reviewed within the past 5 years Don't know Radio button: Not checked Don't know
The lease is longer than 12 months Strongly agree Radio button: Checked Strongly agree The lease is longer than 12 months Tend to agree Radio button: Not checked Tend to agree The lease is longer than 12 months Neither agree or disagree Radio button: Not checked Neither agree or disagree The lease is longer than 12 months Tend to disagree Radio button: Not checked Tend to disagree The lease is longer than 12 months Strongly disagree Radio button: Not checked Strongly disagree The lease is longer than 12 months Don't know Radio button: Not checked Don't know
Where there is a material change in circumstances affecting the pub Strongly agree Radio button: Checked Strongly agree Where there is a material change in circumstances affecting the pub Tend to agree Radio button: Not checked Tend to agree Where there is a material change in circumstances affecting the pub Neither agree or disagree Radio button: Not checked Neither agree or disagree Where there is a material change in circumstances affecting the pub Tend to disagree Radio button: Not checked Tend to disagree Where there is a material change in circumstances affecting the pub Strongly disagree Radio button: Not checked Strongly disagree Where there is a material change in circumstances affecting the pub Don't know Radio button: Not checked Don't know
The tenant is not currently in MRO negotiations Strongly agree Radio button: Checked Strongly agree The tenant is not currently in MRO negotiations Tend to agree Radio button: Not checked Tend to agree The tenant is not currently in MRO negotiations Neither agree or disagree Radio button: Not checked Neither agree or disagree The tenant is not currently in MRO negotiations Tend to disagree Radio button: Not checked Tend to disagree The tenant is not currently in MRO negotiations Strongly disagree Radio button: Not checked Strongly disagree The tenant is not currently in MRO negotiations Don't know Radio button: Not checked Don't know
Please suggest other circumstances, if any, where tenants should be able request rent reviews.
Safeguards must be in place to ensure that pub-owning business cannot keep renewing a short term tied tenancy to prevent a tenant being able to request a rent review where the lease is 12 months or less.

7. To what extent do you agree or disagree that tenants can request a rent review when the following material change in circumstances occur?

Change to local infrastructure Strongly agree Radio button: Checked Strongly agree Change to local infrastructure Tend to agree Radio button: Not checked Tend to agree Change to local infrastructure Neither agree or disagree Radio button: Not checked Neither agree or disagree Change to local infrastructure Tend to disagree Radio button: Not checked Tend to disagree Change to local infrastructure Strongly disagree Radio button: Not checked Strongly disagree Change to local infrastructure Don't know Radio button: Not checked Don't know
Change to local employment Strongly agree Radio button: Checked Strongly agree Change to local employment Tend to agree Radio button: Not checked Tend to agree Change to local employment Neither agree or disagree Radio button: Not checked Neither agree or disagree Change to local employment Tend to disagree Radio button: Not checked Tend to disagree Change to local employment Strongly disagree Radio button: Not checked Strongly disagree Change to local employment Don't know Radio button: Not checked Don't know
Change to local environmental factors Strongly agree Radio button: Checked Strongly agree Change to local environmental factors Tend to agree Radio button: Not checked Tend to agree Change to local environmental factors Neither agree or disagree Radio button: Not checked Neither agree or disagree Change to local environmental factors Tend to disagree Radio button: Not checked Tend to disagree Change to local environmental factors Strongly disagree Radio button: Not checked Strongly disagree Change to local environmental factors Don't know Radio button: Not checked Don't know
Long-term change to the local economic environment Strongly agree Radio button: Checked Strongly agree Long-term change to the local economic environment Tend to agree Radio button: Not checked Tend to agree Long-term change to the local economic environment Neither agree or disagree Radio button: Not checked Neither agree or disagree Long-term change to the local economic environment Tend to disagree Radio button: Not checked Tend to disagree Long-term change to the local economic environment Strongly disagree Radio button: Not checked Strongly disagree Long-term change to the local economic environment Don't know Radio button: Not checked Don't know
Please tell us what other circumstances, if any, should be taken into account?
The Scottish Government should explore whether the Code could allow for tenants to request a rent review if they have not been receiving what they can reasonably expect from the pub-owning business, their products and services or if there is serious deviation from the agreed business plan.

8. What kind of leases should a tenant be able to request a rent review for? (please select all that apply)

Please select all that apply
Checkbox: Ticked New leases
Checkbox: Ticked Existing leases
Checkbox: Unticked Don’t know

Timescales and disputes on rent review and rent assessment

11. To what extent do you agree or disagree with the proposal that a rent assessment statement should be provided within 4 weeks of a request?

Please select one item
Radio button: Ticked Strongly agree
Radio button: Unticked Tend to agree
Radio button: Unticked Neither agree or disagree
Radio button: Unticked Tend to disagree
Radio button: Unticked Strongly disagree
Radio button: Unticked Don't know

12. To what extent do you agree or disagree with the proposal that the statutory rent review process should take no longer than 12 weeks, beginning from the date of the tenant’s request?

Please select one item
Radio button: Ticked Strongly agree
Radio button: Unticked Tend to agree
Radio button: Unticked Neither agree or disagree
Radio button: Unticked Tend to disagree
Radio button: Unticked Strongly disagree
Radio button: Unticked Don't know

13. To what extent do you agree or disagree that disputes on rent review and rent assessment should be referred to the Adjudicator only after dispute resolution processes in the lease have been exhausted?

Please select one item
Radio button: Unticked Strongly agree
Radio button: Ticked Tend to agree
Radio button: Unticked Neither agree or disagree
Radio button: Unticked Tend to disagree
Radio button: Unticked Strongly disagree
Radio button: Unticked Don't know

14. What else, if anything, should the code cover on rent reviews and rent assessment?

Please provide any comments
A provision should be added to the Code to require independent rent assessment decisions are published.

Decisions relating to the outcomes of independent rent assessments should not bound by confidentiality agreements. These decisions should be published to allow tenants access to information on rental decisions which they can use to support their own rental negotiations. Currently, individual tenants will only know the results of an independent assessment relating to their own pub, whereas pub-owning businesses will have access to all decisions from across their tied estate. While each case should relate to the specific scenarios of the pub, this may help tenants find similar cases to theirs.

Repairs and dilapidations, flow monitoring devices and gaming machines

15. Do you have any comments on the proposals on repairs and dilapidations?

Please provide any comments
We agree that the Code must provide safeguards for tied tenants to make sure that they are treated fairly and reasonably when it comes to the issues of repairs and dilapidations.

The experience of many tied tenants in England and Wales is that pub-owning businesses have sought to flout the principle for fair and lawful dealing by seeking to deter tenants from taking an MRO agreement by presenting large and inflated dilapidations bills alongside a proposal for a market rent.

Pub-owning businesses in Scotland should be prevented from enforcing unreasonable dilapidations on tenants following receipt of requests under the Code as a means of discouraging tenants from going free-of-tie for example.

16. Should additional evidence be required before a pub-owning business can take action as a result of a reading from a Flow Monitoring Device?

Please select one item
Radio button: Ticked Yes
Radio button: Unticked No
Radio button: Unticked Don't know

18. Should gaming machines be covered by the code?

Please select one item
Radio button: Ticked Yes
Radio button: Unticked No
Radio button: Unticked Don't know

Other comments on the code

22. Is there anything else that should either be included or removed from the Scottish Pubs Code?

Please provide any comments
Code avoidance:

The Adjudicator should regularly report on the behaviour of pub-owning businesses and make an assessment of whether businesses are acting to avoid or ‘game’ the Code, including on moving or attempting to move tied tenants to other business models that would mean they do not fall under the remit of the Code and Adjudicator.

Performance standards:

Performance standards should be implemented to track the performance of the Adjudicator and ensure that all parties can seek redress in a timely manner and that arbitration cases aren’t taking a significant amount of time to resolve.

CAMRA believes that it is reasonable to have performance targets for the time it takes for cases to be concluded.

Tenant awareness:

It has been suggested that a lack of awareness of the voluntary code was one of the reasons why there was not a single referral under it.

In addition, a survey by CAMRA on issues affecting the viability of pubs found that nearly 20% of those tied tenants in England and Wales who responded were not aware of the Code governing England and Wales, suggesting that around a fifth of all tied tenants under that Code could be completely unaware of their legal rights. The England and Wales PCA’s own tenant survey found that only 35% of tenants knew about their right to request MRO under the Code.

The Scottish Adjudicator should carry out an annual tenant survey to track awareness of the statutory Code among tenants and measure the effectiveness of efforts to increase understanding of the Code and MRO process.

Financial penalties

23. Do you think that the maximum penalty for a pub-owning business or group that has failed to comply with the code should be 1% of turnover?

Please select one item
Radio button: Unticked Yes
Radio button: Ticked No
Radio button: Unticked Don't know

Fees and expenses for arbitration

25. Do you think that the fee for a tenant to submit a dispute for arbitration should be set at £250?

Please select one item
Radio button: Unticked Yes
Radio button: Ticked No
Radio button: Unticked Don't know

26. To what extent do you agree or disagree that a tenant should be required to pay towards the expenses of an arbitration where the arbitration has resulted in an award in favour of the pub-owning business?

Please select one item
Radio button: Unticked Strongly agree
Radio button: Unticked Tend to agree
Radio button: Unticked Neither agree or disagree
Radio button: Ticked Tend to disagree
Radio button: Unticked Strongly disagree
Radio button: Unticked Don't know

28. To what extent do you agree or disagree that a tenant should be required to pay expenses in excess of any ordinary limit where an arbitrator has decided that the pub-owning business has no liability on account of the dispute having been submitted for arbitration by the tenants vexatiously?

Please select one item
Radio button: Unticked Strongly agree
Radio button: Unticked Tend to agree
Radio button: Ticked Neither agree or disagree
Radio button: Unticked Tend to disagree
Radio button: Unticked Strongly disagree
Radio button: Unticked Don't know

Any other comments

30. Please let us know if you have any other comments in relation to either set of proposals (the Scottish Pubs Code or on financial penalties, fees and expenses)

Please provide any other comments
N/A

About you

31. What is your name?

Name
CAMRA, The Campaign for Real Ale

33. Are you responding as an individual or an organisation?

Please select one item
(Required)
Radio button: Unticked Individual
Radio button: Ticked Organisation

34. What is your organisation?

Organisation
CAMRA, The Campaign for Real Ale