Beer tie may need further investigation

Martin O' Neill, the MP heading the Department of Trade and Industry Select Committee looking into the beer tie has indicated he believes the pub market needs further investigation.

Speaking at a meeting held in Birmingham this week he told delegates that he felt the pub market might be a "complex monopoly" that would need more scrutiny.

He said that the committee had received an enormous amount of contradictory evidence on the beer tie from groups within the trade, although he was not as concerned about upward-only rents following assurances from the major pub companies.

One issue he spoke strongly about at the meeting was gaming machines. He said there was no reason for tenants to be tied for gaming machines.

He said the committee still had to reach a conclusion on the beer tie but discounted claims that the tie led to a reduction in choice and forced consumers to pick from a limited range of drinks.

He said he would favour a mentoring scheme to help young tenants enter the industry and wanted tenants to be properly advised before they took on any agreement.

James Gordon at property lawyers Wragge & Co who were running the seminar said: "I would be very surprised if the outcome of the Trade & Industry Committee is that the beer tie should be abolished. But it does seem clear that there are issues that have come to the attention of the committee where they may make recommendations."

The report of the committee is expected to be published in November and the government expected to react in January.