Minister announces study on pub tenancies

23rd May 2015

‘Wet pub sector' to be examined.

The Scottish Government will commission research to help determine if those working in the tied ‘wet pub sector’ are unfairly disadvantaged compared to other pub tenanted models, Business Minster Fergus Ewing announced at a members debate held in the Scottish Parliament today.

A tied wet pub is a public house that is contractually required to buy at least some of its beer from a particular brewery or pub company.

The UK Government introduced primary legislation during the last session to provide for a Market Rent Only Option for the Pub Co (large pub companies) tied sector and have until May 2016 to deliver the Secondary legislation to implement the measures. The makeup of the pub sector is very different in Scotland to those in England and Wales.

Following the debate Mr Ewing said:"Pubs have an important role in our culture, heritage and economy. They employ 43,000 people of which 40 per cent are under 25 and contributes £1.5 billion to the Scottish economy.

“For the last two years the Scottish Government has sought evidence that demonstrates that the ‘tied wet’ sector is much worse off than other forms of contractual arrangements. During this time we have met with representatives from across the industry.

“This is a complex issue, which needs to be carefully examined to determine whether there is robust evidence to any support change. Evidence provided so far has failed to look at the comparative benefits and any negative impact of the ‘tied’ contract as a package.

“For this reason the Scottish Government will commission a study to look at the various pub models operating in Scotland to see whether the tied sector are being treated more unfairly than other parts of the industry. If this study is to be successful, it will require the co-operation of the whole pub Sector, from tenants to Pub Co’s.

“Before Scottish Ministers can commit to the legislative route it is important to carry out this research - which will help us come to a view. We will then be in a better position to consider whether legislation should be introduced and who it should apply to - which may be different to that identified in England and Wales where the make-up of the sector is very different to Scotland."