Anti-pubco campaign group Fair Pint has given a cautious welcome to the Association of Licensed Multiple Retailers' (ALMR) attempt to bring the warring factions of the industry together through a process of arbitration.
However the group, together with the Federation of Small Business (FSB), has warned "a negotiated agreement within the industry should not be seen as an alternative to an investigation by the Competition Commission".
A statement issued today on behalf of both organisations said a full investigation by the Commission "offers the best hope of reform which will see material changes in the interests of tied tenants and that any process of negotiation within the industry should run parallel to a Competition Commission probe".
Fair Pint did not say whether it would be attending proposed ALMR meeting next week to discuss how the industry should tackle the issues it faces.
Instead, Steve Corbett, a tied tenant and a member of the Fair Pint campaign said a Commission investigation was "the best hope of seeing changes to the industry which will lead to material improvements to the interests of tenants".
"Whilst we welcome the ALMR's genuine attempts to agree to a solution to the problems identified by the Business and Enterprise Select Committee, we are concerned that some of the potential participants in the arbitration scheme are motivated by an attempt to delay a Competition Commission inquiry rather than a genuine desire to agree to a compromise which would secure the long term future of the industry.
"We disagree with [ALMR chief executive Nick] Bish's argument that a Competition Commission investigation would take two years and be damaging to the industry. What is clear is that the status quo is leading to tremendous damage to the long-term future of the sector.
"A Competition Commission inquiry is the best chance that the industry has to see the changes which are required to rebalance the relationship between tenants and the companies who own their pubs.
"It is in the interests of the industry to see a Competition Commission inquiry to start as soon as possible," he added.
Clive Davenport, Trade and Industry chairman for the FSB said: "The initial very negative reaction of the pubcos to the Business and Enterprise Select Committee shows that that their main interest is securing the profits they make by overcharging tenants rather than accepting that major changes need to be made to their business model if we are going to secure the long-term future of the pub sector.
"The FSB and Fair Pint agree that a Competition Commission investigation is clearly in the long term interests of tied tenants and the whole sector. The danger to the industry doesn't come from a proper review of its structures from the competition authorities, but from those forces who wish to defend the status quo."