Enterprise: we'll avoid complacency despite OFT clearance

Enterprise Inns has vowed to avoid complacency, despite the pubco model being given a clean bill of health by the Office of Fair Trading (OFT).

The tenanted and leased company said that the OFT had once again proved the beer tie was fit for purpose but that it would also press ahead with address some of the "legitimate" issues raised by the Business and Enterprise Committee (BEC).

"We are delighted that having examined the issues raised in the super-complaint by the Camra, the OFT has concluded that there is no evidence that supply ties are resulting in competition problems or that they contribute to higher prices or prevent pubs offering a wide choice to consumers," a spokesman said.

"The tie has now been reviewed no fewer than 25 times since 1966, 21 in the UK and 4 in the EU. On every occasion it has been concluded that the tie was fit for purpose.

"For many decades the tie has provided a low cost of entry to the pub industry for committed, entrepreneurial licensees who are unable to afford to buy a pub of their own.

"The tie provides an attractive mix of low fixed cost rent plus variable beer margin which reflects the performance of the pub, aligning the interests of the tenant and the landlord, both of whom want the pub to be successful."

However, Enterprise stressed that it was not "complacent" about the model. "We have proposed and are in the process of implementing a large number of measures aimed at addressing some of the legitimate issues raised by the Business and Enterprise Committee Report."