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Licensees want beer-tie plans to be scrapped

25 September 2008 by
Licensees want beer-tie plans to be scrapped

The overwhelming majority of licensees want the beer tie that is imposed by pub companies to be scrapped, according to new research.

In a survey of 1,000 publicans, by the Federation of Small Businesses (FSB), 94% that exclusive purchasing obligations between pubcos and landlords should be scrapped while 99% said little has improved since the situation was last reviewed in 2004.

Submitting its response to the latest inquiry by the Business and Enterprise Committee, the FSB warned that tying pub landlords into certain products is damaging their livelihood and called for a fairer rent review process.

Clive Davenport, FSB national trade and industry chairman, said: "Pubs are not just a part of the local community, in many places they are the local community. They generate employment, local income and an opportunity for people to meet.

"However, 27 pubs are closing down weekly and FSB members give testimony upon testimony how difficult it is to survive in the pub business today.

"Pub landlords often pay up to double the price for beer and cider, than they would if they were buying in a free market. If the ties were eradicated this would create a level playing field to enable pub landlords to compete with those who are not tied."

Up to 30% of beer-tied pubs uneconomic, warns analyst >>

Government must address dominance of Britain's largest pub companies >>

Pub companies to come under scrutiny in new Government inquiry >>

Read more at www.parliament.uk

By Daniel Thomas

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