Group goes to OFT with lessees' rent and beer price grievances
Lessees are being encouraged to take their grievances over high rent and beer prices charged by the giant pub operators to the Office of Fair Trading (OFT).
Political lobby group the Federation of Small Businesses, which has between 1,500 and 2,000 lessees as members, is to submit a report to the OFT on their behalf over the next month.
The report is expected to outline concerns over pub lease agreements which many tenants feel are too restrictive.
They claim high beer prices and rents leave them unable to compete with managed houses and argue that they could buy outside the tie at a fraction of the cost.
But pubcos say the agreements reflect the fact that tenancies offer a quick and cheap entry into the trade. Ted Bruning, editor of real ale magazine What's Brewing, is a supporter of OFT intervention. He said: "Pub companies in this country seem to have one priority and that is to shove as much cash abroad to their masters."
Martin Partridge, Punch lessee of the Rising Sun in Gravesend, Kent, said: "I have a meeting set up with Punch to discuss my situation and what they intend to do. But following that I will be looking at taking it to the OFT and making representation to my MP with a view to taking it to the Chancellor."
Gary McClure, licensee of the Old Kings Head in Broughton-On-Furness, Cumbria, said: "I believe that every lessee should go on rent strike and hit the pubcos where it hurts. We should also ask the OFT to look into it."
But Punch commercial director Francis Patton urged licensees to speak to their business development managers.
He said: "We do not conduct our business partnerships with our licensees in the press and I would urge any licensees, in the first instance, to discuss any issues with their business development manager."
Punch is encouraging lessees to sign up to its new Punch Growth lease which guarantees a discount of £40 per barrel on 10 nominated products.
The Campaign for Real Ale said it would like to see more co-operation between licensees and pub companies to end the dispute. Spokesman Iain Loe said: "There needs to be a inquiry into the industry and perhaps a code of conduct for pub companies to sign. If disputes carry on in the sector then it is the consumers that suffer."
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Related articles:
Pubcos under fire from their disgruntled lessees (30 May 2002)
Pubco giants under attack over high rent and beer charges (23 May 2002)
