Plans to hike fees to licensees by up to 2000% have been averted, for the time being, after a ground swell of opposition from the licensed trade across the country forced the PPL (Phonographic Performance Limited) to delay proposals for any hikes in fees until 1 January 2013 ‘at the earliest’. The planned increase, which was revealed in a consultation paper, was to come in under the SFE (Specially Featured Entertainment) tariff, which includes the playing of all music in pubs, but trade bodies, including the Bar, Entertainment and Dance Association (BEDA), the British Beer and Pub Association (BBPA) and licensed trade associations, united in opposition to the plans forcing, it would appear, PPL to reconsider its position.
Says nightclub operator Donald Mcleod who would have seen his fees rise to over £200K per annum under the proposed hike, “Obviously I am delighted. It just shows what can be achieved if we show a united front. The licensed trade across the UK was unanimous in its condemnation of the planned price increases, it just shows that we do have power when we act together.”
Jamie Macdonald, owner of Raconteur in Edinburgh, said, “I am delighted with this news. Even the larger operators are feeling the pinch and, as demonstrated by the Karen Murphy’s successful appeal to the European Court of Justice to win the right to show football through European decoders, we can affect change. It also begs the question, what are we getting back as small businesses? Nothing on the face of it, so I am against any kind of hikes in fees, and I hope that the wave of resistance to PPL gathers pace.”
Jonathan Stewart, of Dundee bars including The Speedwell and The Royal Arch, said, “Any such proposed hikes would be nothing short of punitive for licensees that rely on late night trade and entertainment, so I welcome the announcement from PPL.”
Glasgow-based Open Ear supply music playlists and its customers include several licensees. Speaking to DRAM, MD Brian Harvey said, “I am pleased to hear that this decision has been deferred, as I think there are more pressing issues for PPL to concentrate on. Had the hikes gone ahead, many licensees that use DJs would have quickly found it very difficult to continue with this.” Although the massive hikes have been averted licensees will still face an increased from PPL, of 5%.
