Delegated Powers and Law Reform Committee [Draft]

Meeting date: Tuesday, May 21, 2024

Official Report 441KB pdf

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Instruments subject to Affirmative Procedure

Welcome to the 17th meeting in 2024 of the Delegated Powers and Law Reform Committee. We have received apologies from our convener, Stuart McMillan MSP. In his place, I welcome Rona Mackay MSP.

Before we move to the first item on the agenda, I remind everyone to switch off, or put to silent, mobile phones and other electronic devices.

Under the first agenda item, we are considering two instruments subject to the affirmative procedure. Issues have been raised on both instruments.

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Scottish Pubs Code Regulations 2024 [Draft]

The instrument sets out a Scottish pubs code for tied pubs. The draft code will govern the relationship between landlords and tenants of tied pubs. In correspondence with the Scottish Government, which is published alongside the papers for this meeting, the committee asked questions on three aspects of the regulations. The committee is content with the responses that it received in relation to two aspects, including in relation to compliance with convention rights.

The third question related to the end of the rent assessment period in regulation 17(10). The Scottish Government advised that the intention is for the rent assessment period to come to an end if the tenant does not accept the offer of a market-rent-only lease within two weeks of the offer, rather than within two weeks of the rent determination. The Government intends to correct that by amending instrument.

Does the committee wish to draw the instrument to the attention of the Parliament on the general reporting ground in this regard?

Members indicated agreement.

Does the committee wish to welcome that the Scottish Government intends to make an amending instrument to correct the error, to come into force at the same time as this instrument?

Members indicated agreement.

Does the committee wish to draw to the attention of the lead committee the explanation that the Scottish Government has provided in relation to the compliance of the code with convention rights?

Members indicated agreement.

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Tied Pubs (Fees and Financial Penalties) (Scotland) Regulations 2024 [Draft]

The instrument sets the maximum penalty that can be imposed on the landlord of a tied pub for breaching the Scottish pubs code. In correspondence with the Scottish Government, the committee queried two aspects of the regulations.

First, the committee queried the reference in regulation 4(2) to a business being

“part of a group undertaking”.

The Scottish Government agreed that that reference is not sufficiently clear and advised that it will be corrected.

Does the committee wish to draw the instrument to the attention of the Parliament on reporting ground (h), in that the meaning of that reference could be clearer?

Members indicated agreement.

Does the committee wish to welcome that the Scottish Government intends to correct the error in an amending instrument, which should come into force at the same time as this instrument?

Members indicated agreement.

The committee also queried whether the drafting of regulation 4(5)(b) achieves the policy intention, since it has the result that the “annual turnover” of a business for the purposes of calculating the maximum permitted penalty could be more than the total relevant turnover for the year. The Scottish Government confirmed that that is the policy intention.

Does the committee wish to draw its correspondence with the Scottish Government on that point to the attention of the lead committee?

Members indicated agreement.