OFT giving mixed messages over minimum pricing
The Office of Fair Trading (OFT) is firing mixed messages at licensees and local authorities over minimum pricing schemes.
But there are new hopes that the government's position could be about to be clarified, after the Home Office confirmed it was examining the issue.
In a recent statement the OFT claimed minimum pricing was illegal, but a number of authorities and licensee-led organisations are successfully implementing voluntary schemes.
In recent weeks Taunton Deane Borough Council in Somerset has proposed a scheme and received a letter from the OFT detailing how to go ahead with it.
In the letter the OFT spells out exactly how the authority and licensees must act to conform with the law.
Jim Hunter, licensing officer at the council, said: "We are simply trying to work with licensees to put into place something that will reduce drink-related violence and we are confident we can do that. But we have been frustrated by some confusing messages from the OFT."
Bournemouth Borough Council faced the same process when licensees set about implementing their own scheme.
As in Taunton, the local authority was advised that should it impose a £1.50 minimum price for all drinks it would be lawful. But if the licensees led the scheme it would be considered a cartel, according to the Competition Act 1998.
Bournemouth's licensing officer Steve Wright said: "It is difficult when we face these complications because we're trying to do something good for Bournemouth and at the same time keep the government happy over binge-drinking."
Steve Hudson, manager at Elements in Bournemouth and head of the town's Pubwatch, added: "We didn't even have any issues with the OFT, we were told the way to do it and went along with that. The lead came from the council and is now in place and working."
This would appear to contradict a recent statement suggesting the schemes were illegal, and could encourage more towns to consider having them.
The OFT said: "We would have concerns if a licensee was to set fixed prices. However, we would consider each application on an individual, case-by-case basis."
