The report, released yesterday, claimed that industry self regulation has failed and there should now be a statutory code of practice for tenanted pubcos. BISC chairman Adrian Bailey said that the “deep seated” problems between tenants and pubcos have not been sufficiently addressed, despite this being the fourth select committee report into the matter over seven years.
Paul Maloney GMB national officer for tied tenants said: “BIS, unlike the so called Office of Fair Trading, recognises that the closure of local tied pubs requires legislation to free the market from monopoly pricing. The British Beer and Pub Association (BBPA) claim tax is to blame, against all the evidence that this is not the case."
He also claimed financial engineering by the City has led to property companies charging sky high rents to tied pub tenants. This, he claims, has increased the price of a pint of lager by 80p.
“This has priced local pubs, particularly those in working class areas, out of the market,” he said.
“The Committee recognizes that unless immediate action is taken more pubs will close.
"BIS has urged the Government to act to introduce a free market for the pub trade. GMB will step up our campaign to get Government to act on this recommendation.”
Hot topics > Pubcos & Beer tie
BISC: GMB supports calls for pubco legislation
Related topics: Pubcos & Beer tie, General News
The GMB union has welcomed calls for legislation against pubcos in the wake of the Business, Innovation and Skills Committee (BIS) report.
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