Pubco competition inquiry a must, Mandelson told
Pubcos have failed miserably to self-regulate and a full Competition Commission inquiry is required, Lord Mandelson has been told by one tenants group.
Inez Ward's Justice for Licensees group, which has the backing of trade union Unite, has written to the business secretary urging reform of the tied pubco model.
The Business and Enterprise Committee recommended a full Competition Commission inquiry into the market. Lord Mandelson is due to respond in October — as is the Office of Fair Trading to the Campaign for Real Ale's super-complaint.
"It is apparent that the pubcos have failed miserably in self-regulation, we fear that this apparent trend will continue without the assistance of government intervention," said Ward.
"Justice for Licensees fully endorses the Business and Enterprise recommendation that the Secretary of State refers the matter to the Competitions Commission for urgent investigation.
"We are of the opinion that there have been far too many questions raised, with reference to the pubco model, which have not been answered satisfactorily and that there is an urgent need for a complete and full investigation of the pubco model by totally independent bodies."
Ward, who is taking part in the strictly confidential mediation talks, added: "I would like to make it clear that this has no reflection on the mediation and our position has not changed with reference to the mediation process."
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