The letter which has been signed by APPSTPG chairman and MP Greg Mulholland and vice chairs Grahame Morris MP and Brian Binley MP claims the problem is “not with family brewers”.
The MPs were responding to a letter sent by the IFBB, which represents 29 brewers who own 3034 tenanted pubs, in which it claimed it believed the move would be detrimental to the industry.
In the letter, seen by the Publican’s Morning Advertiser, it said: “As all out members are below the proposed limit of 500 pubs you might us expect to be ambivalent as to the outcome. It may therefore surprise you that we feel very strongly that this proposed legislation is both unnecessary and harmful to our industry, our businesses, and licensees.”
The letter also claimed that it believed there would be “unintended consequences” which would result in less pub investments, more pub closures and greater unemployment.
However, the APPSTPG has responded: “The fundamental problem is that the large pubcos, who are in huge debts as a result of their irresponsible behaviour, take too much of pub profits leaving many of their tenants unable to make a living. The overcharging takes the form of both hugely inflated beer prices and excessive rents.
“To be clear, the family brewers run sustainable businesses, selling their excellent beer through their pubs and as they are clear, their traditional brewery tied model is different from the leased pubco model. Where we don’t agree with them is that there should be no reform to deal with the serious problem in the large pubco estates."