Findlay: three key messages for Government

Pubs are responsible, duty hikes kill pubs and pubs make a great contribution to employment levels, says BBPA chair.

The industry must focus on getting three key messages across to Government — pubs are responsible, duty hikes kill pubs and pubs make a great contribution to employment levels.

That was the message from British Beer and Pub Association and Marston's chairman Ralph Findlay at the BBPA's first annual dinner.

He said that pubs "get it" when it comes to responsible retailing and recognised that long term success is more likely if the industry works with Government to reduce harm from excessive alcohol consumption.

In highlighting the three key areas, Findlay said he took it as read that the tenanted and leased operators would keep promises made to the Business, Skills and Innovation Committee last year.

24-hour drinking

"If you were a visitor from overseas reading the newspaper headlines about drinking then you would be forgiven for thinking that since the introduction of more liberal licensing laws beer sold in pubs has gone through the roof, pubs are open all day and all night, and pubs are the main culprit in contributing to health and behavioural problems associated with alcohol consumption," he said.

"This is nonsense — consumption of alcohol in the UK fell by 6% last year, the biggest fall since 1948; and is down by 13% since 2004.

"Fewer pubs than supermarkets and hotels have taken advantage of 24 hour licensing. According to Government data there are 7,567 24 hour alcohol licenses in the UK. Of these,12.5% are in pubs, with 78% in supermarkets and hotels.

"For reasons I don't understand around one third of all 24 hour licenses are in 10 licensing districts including Blackpool, Brighton, Bournemouth and Torbay — and Norfolk.

"No-one here would claim pubs don't have to respond to challenge on the issue of responsibility. We as an industry do not support pubs which retail alcohol irresponsibly, but most pubs are run by good licensees who work hard to keep good order in their pubs. More legislation and cost will increase the burden on the great majority and is not going to help. Enforcing existing laws, education - as through DrinkAware — and recognition of personal responsibility for bad behaviour must be our priorities."

Anti-pub tax

Findlay said the duty escalator is an "anti-pub tax". He said: "Increasing beer duty drives alcohol sales away from pubs, which are regulated places for drinking, into the home.

"Supermarkets are effective at resisting price increases when duty goes up, making beer duty a tax on brewers, and they are effective in using their scale to keep alcohol pricing low. Pubs have no such choice, so increasing duty becomes a further reason for the widening price gap between pubs and supermarkets."

Employment levels

He urged the Government to recognise the contribution pubs make to employment levels. "Pubs and restaurants are great examples of businesses which provide flexible employment opportunities accessible to many people, and instead of looking to increase the tax and legislative burden on them we should be looking instead to reduce the barriers to success.

"Why not have lower rates of VAT on food and beer sold in pubs? This sector can mitigate some of the job losses likely to result from the spending review."