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LIB DEM Survey Exposes Extent of “PUBCO” Damage to Reading’s Pubs

Low incomes, arbitrary rent rises and inflated costs – there is more than a hint of bitterness in the taste under-fire Enterprise Inns and their fellow ‘pubcos’ leave for Reading’s publicans, according to the results of a survey released today by Reading East’s Liberal Democrat Parliamentary campaigner Cllr Gareth Epps.

The survey – conducted in July and August 2009 – received a particularly big response from those running community ‘locals’. 80% of responses came from tenant lessees of ‘pubcos’ such as Enterprise Inns and Admiral Taverns.

Key findings of the survey include:-

  • Three-quarters of Reading East’s publicans responding to the survey have an annual income below £15,000 a year.
  • Only half think they will be still running a pub in 5 years’ time.
  • Rent and running costs are the two biggest worries on publicans’ minds. While Government tax rises on beer duty are disliked, they are not the only problem.
  • While drugs and crime are not a significant worry in community pubs, there is a clear view that more could be done to provide training to licensees on stamping out drugs in particular.
  • Those running pubs operated by ‘pubcos’ report being forced to pay much more than the market rate for wholesale produce through the ‘tie’ arrangement – sometimes over 50% more – and having equipment installed to snoop in their cellars.

Concerns were also raised about the effects of the smoking ban. Publicans were scathing about the sale by supermarkets of alcohol as a loss-leader, with local councils powerless to take action to stop it.

Gareth says the findings add to the growing pressure on the Labour Government to take action against the pubcos:-

  • The Government is to respond this Autumn to the unanimous recommendation of the Business & Enterprise Select Committee to take urgent action against the pubcos to make restrictive covenants forcing pubs to shut illegal, and reforming the tie
  • The Office of Fair Trading is due in early October to respond to a consumer ‘super-complaint’ from the Campaign for Real Ale (CAMRA) which adds to the pressure on the tie.
  • The ‘Fair Pint’ campaign to reform the pubcos has grown in strength in recent months.

Gareth has shared the findings with the OFT inquiry into the pubcos. He has also discussed the findings with All-Party Save the Pub Parliamentary Group Chair Greg Mulholland MP (Lib Dem, Leeds NW).

With a view towards securing a debate at the Liberal Democrats’ Bournemouth conference (held in two weeks) on pub closures, Gareth and Greg have co-authored an emergency motion.

Commenting on the findings, Cllr Gareth Epps says:-
“These findings show that there are many threats to Reading’s community pubs – but one of the biggest are the companies that own the pubs themselves. While increased taxation by the Labour Government, cut price supermarket booze and the smoking ban haven’t helped, it’s the pubcos that twist the knife.

The most shocking finding of all is the extent to which the pubcos are ripping off licensees. These multi-billion pound companies with huge purchasing power are allowed to get away with daylight robbery – and then snoop on the people making them money to ensure they’re being ripped off. It’s immoral and goes against the principles of free trade. The likes of Enterprise Inns doing the ripping off are a disgrace and need the law changed so they are forced to trade fairly.”

Gareth derides the Conservative claim that they can “save the pub” as simplistic, as the Tories have not offered any view on pubco reform:-
“Reform is needed not just to cut beer tax – that’s a simplistic solution. Supermarkets are selling booze for less now than 20 years ago – while the price of a pint has gone up three- or fourfold. The playing field must be levelled. The solutions to the crisis affecting our community pubs go much further than reversing Alastair Darling’s despised tax hikes.

This Government has a shocking record in promoting irresponsible binge drinking, while sending responsible community pubs to the wall. Its response to the pressure for reform of the tie can no longer be dither and delay. Labour must act now to stop the destruction of the community pub.”

Editor’s Notes :-
Cllr Gareth Epps is a member of CAMRA and a committee member of the Jollydarity campaign to reopen the Jolly Anglers in Newtown.
The survey was conducted in July and August 2009; on the visit of Greg Mulholland MP (pictured with GarethGareth organised a closed session for publicans to meet Greg and discuss concerns under “Chatham House” rules. Gareth has also met a number of publicans at their request and discussed individual and more substantial concerns.

Gareth’s report can be viewed here

Epps Surveys Publicans Amid Worries for Future of Reading East Pubs

Cllr Gareth Epps, Liberal Democrat Parliamentary campaigner for Reading East, has launched a survey of pubs in Reading East, as doubts continue to grow over the fate of many local community pubs in the area.

Produced with help from a professional in the trade, the survey focuses in particular on the influence of “pubcos” attacked by the cross-party Business & Enterprise Select Committee. Companies such as Enterprise Inns, riddled with debt, have come under criticism after pubs such as the Jolly Anglers in Newtown, the Red Cow in Caversham, and the Whitley Tavern have all shut. Other publicans have found themselves forced to leave pubs as breweries and pubcos imposed rent rises that at times have left publicans under threat of bankruptcy.

Other issues covered include licensing matters, issues of beer tax levels and community safety.

The survey was posted to all known publicans in Reading East last week – not as a result of last week’s sudden closure of the Jolly Anglers. It is entirely anonymous although Cllr Epps will publish aggregate findings later in the year.

Gareth says:-

“Publicans tell me that they face issues ranging from fighting crime to being forced to buy beer at costs way above those paid by the customers of some supermarkets.

Fundamentally, the pub is a part of the glue that binds communities together. We know, though, that many local publicans are treated poorly by the companies that own our local community pubs. Forced to pay over the odds for beer, even before tax, they often face financial penalties for success in the form of steepling rent rises. That is why community pubs are closing at an alarming rate.

I want to see action at Government level to curb the abuses of power of some pubcos. I also want to hear from landlords how they see Reading town centre’s concentration of ‘vertical drinking’ bars and clubs – some of which could be better run and contribute to late-night disorder. Local residents wanting to go to a pub deserve choice and diversity and current policies are not working.

Most of all, I want to hear from publicans in Reading East and find out what they think.”

Save our Pubs says Gareth Epps After Popular Newtown Pub Suddenly Shuts

Cllr Gareth Epps has vowed to fight attempts to permanently close successful community pubs in Reading after talking to publicans and customers about Enterprise Inns’ forced closure of the Jolly Anglers pub in Newtown – the latest ‘local’ to suddenly close.

Gareth visited publican John Westendorp on Tuesday evening (16 June) after news broke that he been given less than one day’s notice to close the pub, after Enterprise representatives suddenly announced that the pub had been sold to developers (although it does not have permission for a change of use to stop being a pub). He joined customers savouring what they feared may be the last night of the pub. He spoke to two customers who told him they had submitted serious offers to Enterprise Inns to keep the pub open – which were treated dismissively by the giant pubco. Garethalso reassured residents that there would be widespread political support for a campaign to save the pub. He has also, as a member of Reading CAMRA, discussed the closure with CAMRA officers.

The Anglers’ closure follows mounting concern at the way pub companies have sold and closed often successful pubs which host community events and provide valuable local services. The sudden closure of the Claddagh Ring on Elgar Road (now reopened) in the winter is one local example of an Enterprise Inns pub; other pubs currently boarded up include the County Arms on Watlington Street, the Whitley Tavern and the Red Cow in Caversham.

Among the ‘pubcos’, the giant Enterprise Inns has a particular notoriety in the pub trade for selling pubs with restrictive covenants forbidding their future use as a pub – even when there is no other pub in the area. Liberal Democrat MP Greg Mulholland who chairs the ‘Save the Pub’ campaign has suggested that Enterprise’s business is founded on a mountain of debt – an unsustainable business model which rips the heart out of local community pubs in particular.

The Business & Enterprise Select Committee published in May 2009 a report, agreed unanimously by MPs of all three parties, which was highly critical of the business practices of the largest pubcos in particular and called for swift Government action on the issue.

Commenting on the closure, Gareth said:-
“This pub has been turned in just three months into a thriving community facility that is popular and much-loved. Enterprise Inns – notorious for their destruction of community pubs across the UK – have given this successful publican just a few hours’ notice to shut. It is outrageous treatment ofJohn and the Newtown community he serves.

“If Enterprise think or claim that they can gain planning permission for the closure of this pub, they can think again. They cannot shut successful community pubs at a whim. Corporate bullies such as Enterprise Inns are increasingly going to find that communities fight back in a united and positive way. Newtown will not allow ‘Time’ to be called on the Anglers.

“This local example highlights a set of wider issues that require action from local and national Government. It is time that good community pubs were cherished, before they are gone forever.”

Lib Dems Condemn RBC as Wrong to Follow Inadequate Government Rescue Scheme

Announced by the Government in November last year, the Mortgage Rescue Scheme was designed to help those most deeply affected by the ongoing recession. However, limits imposed by the Government’s own ministers mean that only 6,000 homes across the UK are protected by the plans, meaning that many in Reading will be left without support.

863 repossession claims, 66% higher than the South East average, were issued in Reading in 2008, whilst many more are expected in 2009 as the recession takes hold. Under current Government limits, the scheme will mean that only 35 (4%) of these local claims would be covered or offered any support.

Under the flagship scheme, only 1 in 25 households facing repossession will be able to receive any help or assistance, but despite this Reading Borough Council’s Labour councillors have decided to give this scheme number 1 priority in its ‘Credit Crunch Action Plan’.

Local Liberal Democrat spokesperson for Reading East, Gareth Epps said:
“Although the Mortgage Rescue Scheme was launched with a great fanfare by the Government in the autumn, this scheme is totally inadequate and simply cannot deal with the reality that many local residents are facing.

This council cannot continue to blindly adopt whatever the latest and disastrous Government policy is that comes along. The people of Reading deserve much better than slapdash Labour policy schemes.

The threat of repossession is a truly terrifying prospect and it is facing far too many people in Reading. I’m regularly meeting residents who are being threatened with the loss of their home – and they know that the Government scheme as it stands is useless. The Mortgage Rescue Scheme must be effectively expanded urgently or else thousands of local residents could face being thrown onto the streets.”

Editor’s Notes:

Information on the Government’s Mortgage Rescue Scheme can be found on the Government’s Communities website

In 2008, 142,000 repossession claims were issued by the courts. Whilst most of these claims did not lead to homes being repossessed, this figure indicates the number of households that are in serious mortgage arrears and therefore would benefit from this scheme. However, the scheme is being restricted to only 6,000 households by the Government. In effect, only 4% of those who are vulnerable to repossession will be assisted by this scheme.

Martin Salter’s plan to step down an admission of defeat

Reacting to news that Martin Salter is standing down at the next election, Reading West Liberal Democrat parliamentary spokesman, Patrick Murray, commented:

“This is an admission of defeat by Reading Labour. Martin has been a central figure on the scene in Reading politics for 25 years. His decision shows that Labour do not believe they can win in Reading West. If local people across Reading do not want a Tory MP then there is only one choice- the Liberal Democrats.”

Patrick continued: “Martin has worked hard over the years and we wish him the best for his future. But local people must not be left in the lurch for the next 18 months. Reading West deserves a full-time MP. We’re ready for an election.”

Cllr Gareth Epps, leader of the Liberal Democrat group commented “Martin Salter’s influence within Reading Civic Centre has certainly been considerable – and remained so long after he stepped down as a councillor.

The timing of his announcement signals even more clearly that things are changing in Reading. An era of overwhelming Labour control has come to an end. Martin was Labour’s best chance of holding the Reading West constituency. This sends a clear message to Reading voters that if you don’t want the Conservatives, vote Liberal Democrat.

Martin’s work for many people had become overshadowed by internal fighting within Reading Labour Party in recent years. In part this reflects the more tolerant views of Reading’s diverse communities, which the Labour Government rejected all too often. The fight to see who succeeds Martin Salter will not be pretty.

Whatever people’s view of Martin, everyone will agree that Reading politics are going to be very different. It will be interesting, to say the least, to see what he does next.”

Vince Cable visits Reading

Global economic crisis, banks collapsing, government bail outs, a looming recession – suddenly you can’t get away from the economic situation.

One politician who predicted all of this was Vince Cable MP, the deputy leader and shadow chancellor of the Liberal Democrat party. With over 40 years of economic experience as a lecturer at LSE, a treasury finance officer, chief economist to Shell and finally as the Liberal Democrat treasury spokesperson, Vince Cable is well placed to review our current the economic position and how we might get out of it.

On Thursday 13 November Vince Cable will be giving a talk entitled “The truth about the economy”. This is being held at the University of Reading, Palmer Building (Room 109) from 7.30 to 9.30 pm. The meeting is open to members of the public and free to all to attend.

Parliamentary Campaigner for Reading East, Cllr Gareth Epps said “Vince’s speeches are always a pleasure to watch as his quick wit and strong knowledge of all topics is clearly apparent.”

Peter Walley, President of the Reading University Lib Dem Society, “The Liberal Democrat party clearly cares about young people, several key MP’s such as Lembit Opik, David Heath and Nick Clegg have been keen to come and talk to students in Reading.”

Editor’s Notes:

  • Please contact Cllr Glenn Goodall for more information 0118 3750082 or Glenn_Goodall@hotmail.comor
  • RU libdem Soc president Peter Walley at peterwalley@hotmail.com

Campaign to stop development at Pincent’s Hill

Patrick Murray, the Lib Dems Parliamentary Spokesman in Reading West is offering his support to the campaign to stop development at Pincent’s Hill.

Patrick said “The plans for development at Pincent’s Hill are completely inappropriate. It’s a beuatiful spot that’s well loved by the local community. The developers also want to build on some recreation land as well. The combination of all the areas in the plan would deprive the local community of much needed open space. It’s particularly poorly thought out given the West Berks District Council are one of the few councils in the entire South East to have had their housing numbers reduced.”

“The extra pressure placed on local roads and schools is also very problematic. There are already difficulties and putting close to a thousand houses here doesn’t help. The plans seem to provide little in the way of extra infrastructure for local people whilst fundamentally altering the rural appearance of the area. Of course we need more affordable housing for local families across the region but this development is neither in the right place nor the right way to go about it. We must guard this beautiful area from development.”

Public Meeting with Nick Clegg MP

Reading Central Branch Liberal Democrats formally invite you to a public meeting with Nick Clegg MP.

This will be taking place on Saturday 18 October 2008 from 6pm to 7pm in the Kennet Room of Reading Civic Centre RG1 7AE.

This meeting forms part of a series of “Town Hall” visits throughout the country. Nick Clegg is determined to do everything he can to be accessible to the public and make them feel they do have a voice to influence what happens in our country.

Nick has said:

“Since I became leader of the Liberal Democrats, I’ve held public meetings up and down the country. They are an opportunity for me to talk to real people about the matters they want to raise.

No scripted questions, no pre-prepared answers – just a frank talk between me and local people about issues, problems, and how we can solve them.”

Most people feel cut off from politics – left out or even ignored most of the time. They don’t have a voice to influence what happens in our country.

“It’s no use politicians waiting in Westminster and assuming they know everything. If you want to understand how things like the credit crunch really affect people, you’ve got to be out meeting people and listening.”

Lib Dem Group Leader and parliamentary campaigner for Reading East, Cllr Gareth Epps Said:

“There will be no scripted questions, no pre-prepared answers -just a frank talk between Nick Clegg and local people about issues, problems, and how we can solve them.

“You do not have to be a Liberal Democrat to attend this meeting or ask questions. We hope very much to see you there.”

THANK YOU

Liberal Democrats are celebrating another advance in Reading as Labour lost their leader and overall control of Reading Borough Council.

In the Reading East constituency, Phil Challis turned a Conservative victory last year into a Liberal Democrat majority of almost 400 in Loddon ward in Woodley and Jenny Lissaman comfortably held Bulmershe & Whitegates.

Lib Dem Warren Swaine beat Labour’s longstanding Council leader David Sutton to gain a seat in Katesgrove ward and Glenn Goodall gained Redlands from Labour.

There are now 8 Liberal Democrats on Reading Borough Council – the highest total for many years.

Commenting on the results and Reading’s status as a balanced council, Cllr Gareth Epps, acting leader of the Liberal Democrat group, says:-

‘I’m delighted with this result. It is particularly clear that in the urban areas of Reading it is the Liberal Democrats making advances – and the Conservatives falling back. While Labour have lost control, the Tories cannot be pleased with a result that saw them lose in a number of seats they were targeting to gain.

‘Now to the future. We have set out a very clear agenda, in much greater depth than the other parties. We now want to make the changes which the people of Reading have demonstrated clearly they want to see.

‘It is called “Real Change for Reading” and is available on this site. I look forward to hearing how the other groups on the Council now will seek to implement that chance.’

Water Bills Rip-Off for Residents in Flats

Cllr Gareth Epps, Liberal Democrat Parliamentary campaigner for Reading East, is warning residents of a potential rip-off after residents contacted him pointing out that Thames Water promised to cut water bills for thousands of local people living in flats – then put the rates up.

Gareth has written to the Chief Executive of Thames Water and to OFWAT demanding an explanation, and is writing to constituents living in flats advising them they could have been overcharged by up to £64 per year. A pensioner in a one-bedroom council flat in St Giles’ Close contacted Gareth after receiving this year’s bill for £264, having read a Thames Water press initiative only a month ago which stated that bills would be cut for residents living in flats where a water meter cannot be installed to as low as £200.

A statement on Thames Water’s website dated 5 February states that the company is abolishing the flat £245 charge for non-metered properties to £200 for a studio or 1-bed flat, or £217 for a two-bedroomed property. By contrast, the water rate for Gareth’s own terraced house in Central Reading is only £188.

Residents who think they may have been overcharged are urged to contact Thames Water on 0845 9200 888.

Gareth says:

“I simply cannot believe that the fat cats at Thames Water have the cheek to claim one week that they’re cutting people’s water rates – then send out bills the next that put them up.

These bills are going to pensioners on fixed incomes, living in council flats and already short of cash after paying much more for winter fuel. Thames Water owe local residents an explanation.

It is possible that thousands of Reading residents living in flats have been overcharged.

Residents deserve better – especially after a winter of spiralling energy costs. I am advising them to check bills very carefully and be prepared to complain in order to make sure they have not been charged over the odds.”

Editor’s Note:

The Thames Water press release entitled “Lower charges on the way for thousands of customers”, released on 5 February 2008, is available on the Thames Water website.

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