MP: 'stick to your guns' over pubcos

Stick to your guns and call for a full Competition Commission inquiry in to the way pubcos treat their tenants — that's the stark message from Save the Pub Group chair Greg Mulholland.

The Lib Dem MP has written to all Business and Innovation Select Committee members ahead of its revised report, urging them to "stand firm" on their original conclusions that a Competition Commission investigation and regulatory intervention are required.

He said it was a mistake to give pubcos any more time to implement reform via the new Framework Code of Practice.

Mulholland reminded committee members that voluntary measures had failed to improve the situation following the 2004 inquiry.

"We believe that the big owning companies have a clear strategy of playing for time in the hope that the risk of regulatory intervention into the market will pass," he said.

Mulholland said the BBPA code only addresses seven of the 25 recommendations made by the select committee.

"Nothing in the code of practice will make a difference to the way in which the tie is currently operated and the huge gap in prices for beer and other products charged to tied tenants compared to the prices that the same products are available on the open market which makes it impossible for many tenants to make a living, despite in many cases having a healthy turnover," he said.

He added: "The majority of pub trade organisations, including pub tenant and pub consumer organisations are not only not signed up to the code, but believe it is merely an attempt to avoid much needed reform."

Greater transparency​

However, British Beer and Pub Association director of communications Mark Hastings stressed the code was not a BBPA code but an industry code agreed between the BBPA, BII and the Federation of Licensed Victuallers Associations.

"The code represents a clear and significant change in practices, particularly in the areas of transparency and information that will be available to licensees.

"It has been made clear in legal opinion to the select committee this code when implemented through the individual company codes will be legally enforceable.

"The select committee has had the opportunity to study our code in detail and has asked a number of questions on how it operates both in the evidence session and subsequently.

"It is up to them to reach their own conclusions about the code.

"All we emphasise is the clear commitment of all our member companies to implement and abide by the code in letter and in spirit."

The revised report from the Business and Innovation Committee is due to be published at the end of the month.