What was the issue?
Tenants have the right to a Code Rent Assessment Proposal
(RAP) if during the previous 5 years there has been no
concluded rent
assessment (and/or, in the Code’s first 5 years, a
rent review). The
PCA identified arbitration cases in which Star declined to
provide the tenant with a RAP because, it argued, the
annual Retail Price Index (RPI) rental increase during the
previous 5 years was a rent assessment or
rent review under
the Pubs Code.
The PCA was aware that Star had already argued this same
point unsuccessfully in a previous arbitration. Star had
the option of appealing that award but chose not to do so.
What did the PCA do?
Arbitration awards are not binding in future cases.
However, the PCA told Star’s Code Compliance Officer (CCO)
that it was concerned with its position and that the
company should have reconsidered it on receipt of the
award. This included revisiting its view of the relevant
law and applying it consistently to ensure it complied with
its Code duties.
The PCA asked Star to confirm the steps taken to ensure and
verify its compliance and mitigate any impact on tenants.
What was the outcome?
In light of the PCA’s intervention, the CCO replied
promptly to confirm that Star had now changed its position
and would no longer identify RPIs as Code rent assessments
or reviews, and would be open about this to its tenants,
including those in all ongoing arbitration cases.
Star will inform tenants of the change on their publican
channel shortly and BDMs continue to be updated as
appropriate. The CCO is available to answer any questions
from tenants.
