MP quizzed over report
The British Beer & Pub Association (BBPA) has been placed on a "yellow card" by the Trade and Industry Select Committee.
Speaking today at the launch of the committee's report on the tenant and pubco relationship, Martin O'Neill criticised the organisation for being "too close to the problem" and emphasised the need to carefully consider its voluntary code of conduct.
"I'd like to think the BBPA will now pause and reflect on our findings," said Mr O'Neill. "If they do nothing on this I'd expect the government to look very closely at the industry."
The MP who chaired the committee also recommended the major players in the industry aggressively address the commercial agreements that currently exist.
"A number of changes in the code of practice will help industry sales and profitability," he added. "A revised code can help pubcos and tenants if enforced properly."
Responding to claims that the findings were not tough enough on pubcos Mr O'Neill argued that this was the first time the committee had looked at the problem and it was therefore not prepared to be over-zealous with its demands.
"We have carried out an extensive study but would like to think that in two or three years time the next committee will want to look again at the issue and the progress made."
The report has found in favour of the beer tie with the committee arguing that abolishing it would lead to pubcos increasing rents and potentially allowing brewers to revert to business practices that existed before the beer orders.
But it has argued that the tie on fruit machines is a bad deal for tenants and should be ended.
Mr O'Neill added: "This is the last blatant example of the old way of working among the pubcos. It doesn't involved commercial competent to enter in these sorts of agreements. Why should 50 per cent of the income go to pubcos?"
Related articles:
Pubcos off the hook on beer tie (21 December 2004)
Committee targets BBPA code (21 December 2004)
Trade and Industry Committee criticises CAMRA (21st December 2004)
Mixed reaction to pubco investigation (21 December 2004)
