Pubcos fight council on minimum pricing
Two pubcos have taken legal action to fight plans for a minimum price scheme in Scotland.
Mitchells and Butlers has joined forces with Spirit to block Aberdeen City Council in its efforts to impose the scheme and has taken the case to the Court of Session, Scotland's supreme civil court.
The licensing authority had aimed to impose the measure by October 19 but this has now had to be delayed.
In a joint statement the companies said: "We confirm that we have jointly served a writ against the Aberdeen Licensing Board in relation to the minimum pricing of alcoholic drinks in our pubs in Aberdeen. We believe that the power to regulate prices is beyond the scope of licensing boards, and is therefore illegal. Minimum pricing directly interferes with the commercial relationship with our customers.
"Competitive pricing per se does not encourage irresponsible drinking, provided it is not delivered by means of irresponsible promotions."
Yates revealed last week that as part of its social responsibility policy it would include minimum pricing. Spirit is also considering its policy but the attempt to thwart Aberdeen City Council confirms that similar schemes are not on the agenda.
In response to the delays the council has told licensees that the scheme will not be imposed on the agreed date but is intent on fighting the pubcos in court over the matter.
The case will resume on October 25 when the local authority will have its say.
A spokesman added: "We considered this measure as part of efforts to work on responsible drinking. The delays to this won't effect the currency of any of our existing licenses and we will not be advising anyone to take on the minimum prices until the case has been resolved."
Doubt has been cast over minimum pricing schemes in recent weeks as government and trade associations have emphasised parts of law, which make them illegal.
The British Beer and Pub Association wrote to its members last week and spelt out why subscribing to the schemes was illegal, specifically breaching the Competition Act 1998.
Related articles:
Yates first to adopt minimum price scheme (14 October 2004)
