I thank noble Lords for their contributions to this surprisingly brief debate—the briefest ever, I think, on the subject of pubs. I thank the noble Lord, Lord Beecham, for the joke that he passed to his colleague about the bell for last orders.
I just hope that this is not my last order in the business brief, given the momentous events of the last few days. I will be very glad to put pubs to bed in this stage of regulation.
I very much concur with the wish of the noble Lord, Lord Mendelsohn, to see speedy implementation, which is why we are planning to introduce the regulations the day after they are made if noble Lords are happy here; there are debates in the Commons tomorrow and on Monday. Subject to parliamentary approval, we will be making the regulations ahead of the Summer Recess and in a minute I will talk about our plans for the adjudicator.
In passing, I thank the noble Lord, Lord Mendelsohn, for always looking at this from an economic, industry point of view. I actually rather miss my noble friend Lord Hodgson, who usually engages in debate and ensures that we are thinking about the economic side. It is very important that pubs flourish. They are changing and obviously they will have to face a post-Brexit situation. The consumer climate is very important to them. So it is good news for pubs that we now have the certainty of a new Prime Minister, rather than uncertainty dragging on for several weeks.
The noble Lord asked about the review provisions. We will, as I have said already, keep a close eye on the operation of the code to make sure that it is delivering its objectives. There is, as he suggested, a statutory review of the code, which has to take place by March 2019 and every three years thereafter. That is rather more frequent than some of the regulations that we discuss in this House and we will be keeping an eye on the code to ensure it continues to deliver fairness and the other objectives that I set out in my opening remarks. Obviously, the department and, I am sure, the Minister of the day would be involved in any such review.
Turning to the Pubs Code Adjudicator and his role in interpretation, I saw him last week to make sure that plans were in place and that he was getting ahead. I was glad to see that he was because obviously he needs to be ready for day one. He is planning to consult and publish guidance in line with his statutory duties as outlined in Section 61(1) of the SBEE Act in relation to the conduct of investigations and any resulting financial penalties. He will do that by 2 November this year and over time he will consider whether other guidance or interpretive support may be required. Obviously, he intends to work with stakeholders to help determine this.
In relation to the penalties, as I said in my opening remarks, there is flexibility for the adjudicator. It is a high maximum penalty but it is entirely at his discretion. He will consult on his criteria so that stakeholders can inform his thinking.
It was an honour to hear from my noble friend Lord Lexden and I never cease to marvel at the skill and detail that the JCSI lends to this kind of thing—it keeps us honest. If you get one of the reports through the post, you know that it is really well worth a read, including this one. I will try to answer my noble friend’s concerns and if for any reason he is not happy I hope we can discuss the matter further. The reference
in the SBEE Act as to whether the increase was reasonably foreseeable does not limit the power the Government have to define the MRO trigger. This was recognised in the JCSI report and parliamentary counsel confirmed this for us. Following consultation in 2015 and 2016, the Government have ensured that the regulations provide for increases that were not reasonably foreseeable, and other significant price increases.
My noble friend’s second point was about the significant increase in the price of a single product category. The regulation provides that the test for the SIIP trigger is an increase in at least one product or service. It is the Government’s view that the test of whether or not an increase is significant should be assessed through a comparison of price changes across a range of relevant products, not just the one.
I believe that the Pubs Code is bringing fairness and transparency to an industry that has been troubled by poor relationships between too many tied tenants and their pub-owning businesses for too many years. It brings statutory rights, protections and responsibilities where the voluntary approach has sadly failed to make sufficient headway. Above all, it brings hope and confidence to a sector very much in need of it.
I thank the noble Lord, Lord Mendelsohn, for his appreciation of the staff who have been involved in the arduous work on this important reform of pub law. Assuming that Parliament approves our orders, we will be drinking to the pub order next week. I commend these draft orders to the Committee.