Six Continents boss blames Government for demise of UK pub

Six Continents chairman Sir Ian Prosser has blamed Government intervention for the shift of his company from brewing into hotels.

And he has warned that unless things change, British companies will be forced abroad to be successful.

Speaking at a meeting of British American Business, Mr Prosser outlined the history of the company which was Bass, and how it had changed in the last 20 years into Six Continents.

"The origins of this transformation lie deep in the UK's competition policy of the 1980s and 1990s," he said.

Constant investigations into "virtually every aspect of our business" made the 1980s very difficult, Mr Prosser told the meeting.

"I guess a cynic might say the politicians have always thought that beer is considered to be a vote winner," he added.

The company began buying hotels and eventually, after the Monopolies Commission introduced the beer orders in the late 1980s, sold a majority of its 7,500 pubs.

"This marked a major change for our business and it was also leading to the demise of the great British pub as it was previously known and loved," Mr Prosser said.

"Our competitors in the brewing industry have tended to follow the same route and have sold their tenanted estates. This leaves us with he position today where Japanese bank Nomura is the largest owner of pubs in the UK."

According to Mr Prosser, it was the Competition Commission's refusal to allow a merger between Carlsberg-Tetley and Bass that led to the sale of Bass' brewing interests.

"With a heritage stretching back to 1777, this was not an easy decision," Mr Prosser said.

"We were sure that consideration would take place in the international beer market and this would lead to further consolidation in the UK market.

"Since we were not allowed by the Government to be part of that consolidation we decided we should sell our brewing business."

Six Continents now owns hotel brands in 100 countries as well as retail brands including All Bar One, O'Neills, Browns and Vintage Inns.

Although Mr Prosser said Six Continents was now very successful he pointed out that "we still lack in Britain a consistent regulatory and competition regime".

"I wonder if we have begun to think through the implications of the global marketplace to British business," he said.

"I want to see more British companies competing with the best in the world.

"We don't let them do that if they are hamstrung by parochial legislation and regulation."