BEC chairman urges government to delay pubco power response
Major industry efforts to stave off a probe into the pubco model appear to be working after MPs asked the government to delay its response to a hard-hitting report.
In May the Business and Enterprise Committee (BEC) recommended the government refer the beer tie to the Competition Commission, amid accusations of pubco "abuse".
But an industry mediation process, initiated by the Association of Licensed Multiple Retailers (ALMR), together with promises of reform by the pubcos has prompted a re-think by BEC MPs who now want the government to wait until at least October before responding.
In a follow-up report published today BEC chairman Peter Luff states: "There have been significant developments since we reported. It appears likely that CAMRA will launch a super-complaint to the OFT, and the ALMR is working with an industry group to negotiate changes in the industry.
"An early government response would not be able to consider the outcome of these developments, and the government might be constrained in what it said because of the reality or even the likelihood of a super-complaint.
"We are also aware that the industry has appeared to accept the need to change in the past, and has failed to do so. We have no intention of 'letting the industry off the hook'; we believe that a premature response might do this.
"We have accordingly written to the Minister for Further Education, Skills, Apprenticeships and Consumer Affairs proposing that the government delays its response until after the summer adjournment."
Luff also told The Publican: "We're asking the government formally to delay its response to the report while we wait to see what happens over the summer.
"There are some encouraging signs that the industry is trying to address some of the concerns, but we have got to make sure it means business."
The UK's two biggest pubcos, Punch Taverns and Enterprise Inns, have also made a series of commitments in response to the BEC report.
Last week Enterprise announced 13 measures it would implement. These included offering "royalties-free" AWP agreements, revising its code of practice and ditching restrictive covenants on pubs being sold.
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