'THE CAT IS OUT OF THE BAG' - SAVE THE PUB GROUP RESPONSE TO BEC REPORT
May 13, 2009 12:30 PM
Greg Mulholland MP, Chair of the All Party Save the Pub Group, today welcomed the report published by the House of Commons Business and Enterprise Committee which is highly critical of some of the business practices of the largest pub companies and the effect this is having on tenants and pub customers.
The report was particularly critical of the current operation of the 'beer tie' and stated that the Business and Enterprise Committee had "no confidence that the advantages of the tie outweigh its drawbacks".
Greg (Liberal Democrat) Chair of the Save the Pub Group commented;
"The cat is now officially out of the bag. The way the big companies are operating the tie is bad for tenants, bad for customers and a threat to the future of the British pub.
Despite the increasingly desperate and ridiculous claims coming from some of the Pubcos and their supporters, the committee have made clear that they simply don't believe a word of the spin coming from Pubco HQs. Tied pubs are closing up and down the country, tenants are being exploited and customers are being ripped off.
It is great news that the Committee has slammed the appalling practice of restrictive covenants and Enterprise Inns in particular should hang their heads in shame. The Government must act swiftly on this recommendation."
The Business and Enterprise committee which consists of MPs from all three major political parties has unanimously called on the Government to urgently refer the matter to the Competition Commission.
"What is clear is that the situation is a disaster for the British pub. The Government must listen and take on these big companies who have a stranglehold on the British pub which is the disaster of the Beer Orders.
It is time we had 'Pub Orders' to rectify this, to put more pubs back in the hands of people who care about them and the communities they serve and to stop the abuse of tenants through a totally one sided business relationship.
The era of greedy non brewing property companies dictating the future our local pubs must now be brought to an end. It is time to put the British pub into the hands of people who care including the many landlords who work so hard to keep pubs going, excellent small breweries who want to sell their beer and of course local communities who morally own their locals. It is time for real change to save the British pub."
Brian Binley MP, (Conservative) Vice Chair of the group said;
"When the tie was operated by the big brewers before the Beer Orders if not ideal it was largely paternalistic and the brewers did care about selling their beer in their pubs. Sadly all too often what we have now is a relationship that does not work for tenants or pub customers and reform is needed and soon".
Eric Illsley MP and David Taylor MP (Labour), Vice Chair and esteemed member of the Group respectively commented;
"All the Save the Pub Group members have heard the same story from their local landlords, that the pub owning companies acting in their own interest and not in the interest of the tenants or local communities. It is time that changed and the group will be calling on the Government to take note and take action."
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