OFT to give evidence in tie investigation

The parliamentary pubco investigation took another twist this week when it was announced that the Office of Fair Trading (OFT) is to give evidence.

The Trade and Industry Select Committee was due to wrap up the inquiry after pubcos give their evidence next Tuesday (July 20), but MPs called the OFT to an extra session on September 8.

The news will be celebrated by licensees and the Federation of Small Businesses (FSB) who have been putting pressure on the OFT for more than a year. In April 2003 the OFT refused to investigate the tie but will now have to address the issue in public.

David Bishop, head of parliamentary affairs at the FSB, believes the move is extremely positive. "We would like to see the OFT conduct an industry-wide review. The fact that it has been called suggests there is serious consideration to do this."

The new twist comes after the licensees' case was potentially damaged by inconsistencies put forward by Linda Newport, tenant at the Brasenose Arms in Cropredy, Oxfordshire.

Ms Newport told MPs in the first oral evidence session that she faces bankruptcy due to high rent from landlord Enterprise Inns, but in an advertisement to sell the pub she claimed rent was low.

Enterprise has presented the inconsistencies to the committee and is expected to draw attention to them when giving evidence. Ms Newport said: "The fact is the relationship was unfair. That remains the case and people need to be clear on that before they attack me."

The next evidence session will take place on July 20 at Portcullis House in Westminster, London, and starts at 10am. Giving evidence will be Enterprise Inns' Ted Tuppen, Giles Thorley and Francis Patton from Punch, and Wolverhampton & Dudley Breweries' Ralph Findlay.