Statutory code: beer flow monitoring restrictions 'completely unwarranted' says Vianet

21-Jul-2013 - Last updated on 22-Jul-2013 at 13:37 GMT

Vianet: it has hit out at Government plans for a ban on beer flow monitoring equipment

Vianet, the beer flow monitoring and data management company, has “strongly opposed” Government plans to restrict flow monitoring equipment.

As part of a proposed statutory code to regulate the pubco-tenant relationship, the Department for Business, Innovation and Skills plans for an effective ban on flow monitoring equipment for pubcos with more than 500 pubs.

The consultation for the code said: "The simplest and fairest solution is to mandate in the Code that information obtained from flow monitoring equipment may not be used for the purpose of determining whether a tenant is complying with purchasing obligations and that it may not be used or considered as evidence when enforcing purchasing obligations."

Vianet said that the move would be “completely unwarranted and would represent a wholly regressive step for all”.

It added: “It would deny tenants – the majority of whom have no issue with the equipment – the opportunity to capitalise on a key source of information that delivers significant value to both tenants and pub owners.”

'Ill-informed'

Vianet said that such a policy has been based on “biased and ill-informed opinion of a few self-interested parties”.

Vianet’s submission also addresses the inaccuracies and erroneous assertions made in the original consultation paper; potential loss of income for the Treasury; the legal implications of the suggested changes; the impact on the company and its employees.

James Dickson, executive chairman, said: “The outcome, as proposed in the consultation, removes the only real source of transparency between the tenant and pub company and is a huge backward step.

“If the original consultation paper forms the basis for any legislation there will be unintended consequences which will damage the beer drinker’s experience, undermine investment in the pub trade, diminish HMRC revenues, and threaten jobs in the sector.

"Most concerning to us is the complete lack of evidence upon which the initial recommendations on flow monitoring equipment are based, as well as the deeply-flawed assertions within the original consultation paper.”

'Deeply concerned'

Dickson added: “Unsurprisingly we are strongly opposed to what is proposed in the original consultation and have set out why in our submission.

“Vince Cable has previously gone on record as saying that potential reforms ‘need a strong evidence base behind them, not just anecdotal experiences’, and that is exactly what we are asking for here and is what our submission provides. It can't be fair and lawful to condemn the technology on the assertion that it is ‘controversial’; the evidence provided and examined needs to be backed up with solid facts, not opinions held by a minority who have much to gain.

“We are clearly deeply concerned – and trust the Department will reflect on the factual evidence we and others have provided.

“In my view, apart from the conclusion being unwarranted and disproportionate, it is neither simple nor fair, and misses a key point: the transparency that our equipment provides is part of a successful future solution, not a perceived issue.”