19 Nov 2014 07:00
19 November 2014
Response to House of Commons Amendment.
Enterprise Inns notes yesterday's House of Commons vote in favour of an amendment to the Small Business, Enterprise & Employment Bill.
In response, Simon Townsend, Chief Executive Officer, said:
"This amendment, which was not supported by the Government, threatens to have serious unintended consequences for publicans and the industry at large.
The Government completed a thorough and extensive review of how best to enhance protection for tied tenants. As a result, it rejected the "market rent only" option as damaging to pubs, communities and the wider industry. Independent economic research, commissioned by the Government, found that a "market rent only" option would lead to widespread pub closures, significant job losses and reduced investment in the sector. This amendment is a disproportionate response which proposes fundamental change that is wholly contrary to the findings of the consultation, from which the Bill was drawn up.
We continue to believe the tie offers the best operating model for the vast majority of our publicans and, as we made clear in reporting our Preliminary Results yesterday, we take a flexible approach to all our lease and tenancy agreements and the proactive management of our wider property portfolio. In light of yesterday's vote we will continue to assess all options to safeguard the interests of both our publicans and shareholders. In the meantime we will monitor the situation closely and await the Government's response to this unwelcome development."
Enquiries
Tulchan Communications, Jonathan Sibun 0207 353 4200
Simon Townsend, Chief Executive 0121 733 7700
Neil Smith, Chief Financial Officer 0121 733 7700
Emma Greves, Investor Relations Manager 07990 550210