Probe halts pub development plan
By Nick Lawrence
BBC Inside Out, West Midlands
Plans by the UK's biggest pub company to convert a community pub into a housing development have been halted following a BBC investigation.
Programme makers uncovered a series of inaccuracies and misleading claims in Punch Taverns' planning application for the Cross Guns pub in Birmingham.
The application, which has attracted hundreds of objections, had been due to go before the local housing committee.
Punch said its application had been made in "good faith".
But once details of the investigation by BBC Inside Out West Midlands emerged, Birmingham City Council immediately halted the application whilst the claims could be investigated.
'Common sense'
Punch wishes to build 13 houses on the site of the pub in the Washwood Heath area of the city.
Cross Guns' landlord Craig O'Doherty said he was "absolutely delighted" by the news, adding "it's great that finally someone has used some common sense".
Mr O'Doherty has spearheaded a campaign which has seen 341 objections to the Punch plans, which would have seen the only pub in the ward of Washwood Heath close down.
One Cross Guns regular, 93-year-old Tommy Hyland, told the BBC that if the pub closed "life wouldn't be worth living because I'd be at home all the time".
He added: I couldn't go out anywhere [else], all the boys there and the girls there are very friendly with me. And I'm lost without it."
Most local authorities have strict guidelines relating to redevelopment of community pubs, and anyone wanting to convert a pub has a number of planning hurdles to overcome.
Viability study
Planning consultant Jonathan Phillips told Inside Out: "Typically you'd have to show that the use is not viable anymore so you'd have to make an assessment of the accounts.
"You would also have to see if the building was vacant and…if its been marketed at a reasonable market rate."
And critically, a survey of other available pubs in the community also needs to be undertaken.
"You'd need to do a road survey and look at each property that has consent for a public house to see if its in operation to see if its still in use," added Mr Phillips.
But Punch Taverns assessment of the pubs accounts and locally available pubs proved to be misleading and inaccurate.
The planning applications claims there are 23 pubs within a one mile radius of the Cross Guns. There are in fact six.
They claimed the nearest other pub, the Village Tavern, was 0.63 miles away.
However, this pub surrendered its licence in September 2007 and is currently being converted into a shop.
Punch also claimed that, following a period of closure since The Cross Guns reopened two years ago, the pub hadn't been profitable.
But landlord Craig O'Doherty said: "I've got audited accounts that anyone can see to show that this is a viable business."
Further investigation revealed that Punch Taverns had never seen Mr O'Doherty's accounts and had no idea whether the pub was profitable or not.
'Duty to shareholders'
Punch Taverns is currently is trying to pay down a £3bn debt, and has been actively selling off hundreds of pubs.
"We have a duty to shareholders to maximise returns and dispose of pubs where we believe we can realise greater economic value through disposals as opposed to continued operation," it told the BBC.
"Proceeds from these disposals are used to reinvest in our core estate and pay down debt.
"We never had any intention to mislead the planning authority and our application was made in good faith based on data from an industry leading third party."
So is this a one off? Punch told the BBC that they couldn't say how many planning applications in recent years had used this data but would take "learnings" from this investigation and would "review practices".
This story will be shown on BBC Inside Out West Midlands, on BBC One on Monday, 8 March at 1930 GMT.
Story from BBC NEWS:
https://news.bbc.co.uk/go/pr/fr/-/1/hi/business/8552457.stm
Published: 2010/03/08 01:55:08 GMT
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