Enterprise gives evidence in beer tie investigation

Enterprise Inns took two hours to deliver evidence in the third session of the beer tie investigation hearings.​ The Trade and Industry Committee questioned chief executive Ted Tuppen and customer services director Simon Townsend over Enterprise's role in the relationship between pubco and tenant.

The session was due to last 45 minutes but in the most eagerly anticipated hearing yet the committee continued for an entire two hours.

During it the committee's Nigel Evans, Conservative MP for Ribble Valley, accused the company of holding tenants "over a barrel" and claimed beer orders acted as a "straitjacket".

The committee questioned the representatives from Enterprise on transparency in the price the pubco pays for beer.

Mr Tuppen claimed that such information was "irrelevant" to licensees.

"Knowing how much we pay for the beer from suppliers makes no difference to how they run their business. You understand that this information is commercially sensitive."

In its submission to the committee requesting the investigation the Federation of Small Businesses pointed to the disadvantages licensees face on the price of a pint.

But the claims that the disadvantage reached 45p on each pint were dismissed by Enterprise.

Mr Townsend said: "It's a complete myth that the price of beer will fall if the beer tie is ended."

Mr Tuppen added: "If we were to set the rents too high we would not get good licensees only bad ones.

"The tenant has the absolute right of veto and they do not have to sign up."

Mr Tuppen also said that Enterprise had abandoned upward only rents and they were "inherently unfair" and that 84 per cent of Enterprise licensees were happy.

Wolverhampton & Dudley Breweries was also giving evidence at the session, followed by Punch Taverns.

Extended reports will be available on thePublican.com.