Court opposes minimum price scheme

A court in Scotland has ruled in favour of pubcos and refused to allow a minimum pricing scheme in pubs.

Mitchells & Butlers and Spirit joined forces to block Aberdeen City Council in its efforts to impose the scheme and took the case to the Court of Session, Scotland's supreme civil court.

It was announced today that the court supported the pubcos' argument that the power to regulate prices is beyond the scope of licensing boards, and is therefore illegal, and that it directly interferes with the commercial relationship with customers.

In a joint statement the companies said: "Today's decision supports our view that the power to regulate prices is beyond the scope of the Licensing Boards. We do not believe competitive pricing encourages irresponsible drinking, provided it is delivered by means of responsible promotions.

"We recognise the importance of tackling the issue of responsible drinking, and are working with key industry bodies to develop a comprehensive policy for both the on and off trade, in line with industry guidelines, for the responsible sale and promotion of alcohol."

The decision follows the ruling from the Office of Fair Trading that outlawed a minimum pricing scheme in Taunton.

Taunton Deane Borough Council (TDBC) has had its proposals for a scheme turned down by the OFT because it says it would lead to licensees contravening the Competition Act 1998.

The council had been working with licensees in Taunton to establish the minimum prices as part of wider scale efforts to curb irresponsible drinking, but the decision from the OFT has meant the plans have hit a brick wall.