JFL: pubcos have failed miserably

Pubcos have "failed miserably" to self-regulate and it is "imperative" the pubco model is investigated by the Competition Commission.

That's the damning submission to the Office of Fair Trading in response to the Campaign for Real Ale's super-complaint from Justice for Licensees, the campaign group run by former Enterprise tenant Inez Ward.

The group, which is supported by trade union Unite, called for an end to the AWP tie and an abolition of all ties on wine, spirits, food, and soft drinks but stopped short of calling for a complete abolition of the beer tie.

Instead it said the tie must be reformed with fairer pricing and provision for two guest ales and one guest lager.

The group also wants "a complete investigation and overhaul of the current rental and valuation system" with a national register of comparable rents and a dispute resolution service with an independent chairman.

Ward said the only justifiable argument for the tie is that it may have a detrimental impact on the small family brewers. "We are not 100% convinced on this but have taken the viewpoints on board," she said.

"We are 100% convinced that there have been far too many questions raised, which have not been satisfactorily answered and that there is an urgent need for a complete and full investigation of the pubco model by totally independent bodies.

"As the pubcos have failed miserably in self regulation since the 2004 Trade and Industry Select Committee report we carry some severe reservations on their ability to do so now.

"It is imperative that the whole pubco model is placed before the Competitions Commission with all due haste.

"This must be done for the sake of the trade, the pubs, the tenants and the consumers, the raised questions must be answered satisfactorily."