MP introduces Bill to relax beer tie

An MP is introducing a Bill into Parliament today to force pubcos to give tenants a free-of-tie option combined with an open-market rent review.

Tied lessees must also be offered a guest beer option under the Tied Public Houses (Codes of Practice) Bill from Liberal Democrat Martin Horwood, which would force pubcos with more than 500 pubs to act via a statutory code of practice from the business secretary.

The Bill is backed by the Campaign for Real Ale (CAMRA) and the Federation of Small Businesses (FSB) and already has some cross party support - it is co-sponsored by 11 MPs from across the party divide, including All-Party Parliamentary Save the Pub Group chairman Greg Mulholland.

The news comes as the June 2011 deadline for reform by the industry, set by the Business, Innovation & Skills Committee (BISC) and endorsed by the Government, draws near.

Limited progress​

Horwood said: "Progress by the large pub companies has been limited so far and the voluntary approach appears to be failing.

"Whilst companies have introduced new codes of practice these codes are seeking to do as little as possible and do not offer the free of tie options and guest beer rights urged by the BISC and Government.

"Pub companies have been dragging their feet over the beer tie issue since a Trade and Industry Committee report in 2004, showing simply that voluntary reform is not working."

Free of tie​

Ten minute rule bills rarely become law but are sometimes taken on by governments.

CAMRA chief executive Mike Benner said: "A free of tie option accompanied by an open market rent review will ensure that large pub companies cannot exploit tied licensees as if they do so those tied licensees will be able to opt out.

"No company code currently offers a genuine free of tie option at this time, and none provide a guest beer option to all."

Intervention​

Save the Pub Group chair Mulholland said: "It is increasingly clear that codes of practice are not going to be delivered by the pub companies voluntarily.

"If this is the case the Government will need to intervene and implement a statutory code of conduct that includes this.

"That way many more tied tenants are able to make a living and this would enable many pubs that are currently threatened by the all too common, unfair business model that many companies employ, to thrive once again."

Last week anti-beer tie lobby group Fair Pint wrote to BII chief executive Neil Robertson urging a free-of-tie option, combined with an open market rent review, to be incorporated into the new pubco codes.