MP asks for new probe into pubcos

A Liberal Democrat MP has called for the Competition Commission to investigate pubcos and how they "exploit" licensees.

Tim Farron has written to the Office of Fair Trading (OFT) asking the regulator to urge the Competition Commission to investigate.

Farron also wants the Trade & Industry Select Committee (TISC) inquiry into pubco power to be revisited.

He said the voluntary recommendations of TISC - which include greater clarity on how rent is calculated and an end to the AWP machine tie - have not been adopted by all pub companies.

Farron and fellow Lib Dem MP Greg Mulholland plan to draft a new cross-party Early Day Motion (EDM) calling for pubco estates to be limited to 500 pubs "to reduce the almost monopoly position of pubcos".

Both MPs have already submitted separate EDMs expressing concern at rents charged by pubcos.

The action follows a meeting last week with Farron, Freedom for Pubs Association founder Mike Bell, and surveyor David Morgan of Cookseys DMP.

It comes amid growing tension in the tenant/pubco relationship brought by the challenging trading conditions caused by the smoking ban, rising costs and other factors.

Farron, who represents Westmorland and Lonsdale in Cumbria, said "many" licensees have been in touch and "all of them are feel-

ing the squeeze from the pubcos".

"Pub landlords are, in many cases, being treated scandalously by the large pub chains.

"Pubcos may be making millions of pounds in profits and yet rent is still being increased hand over fist.

"Pubs are often an integral part of a community and act as a social hub. It would be disastrous to see many of them close.

"The Freedom for Pubs Association is an excellent forum for landlords to voice their concerns. We absolutely must act now to prevent more and more pubs from going out of business."

tim Farron's letter to the OFT

I am writing because I am concerned about the conduct of pub chains in relation to their tenants.

In many cases pub chains have been raising rents and other costs forcing many pub landlords into hundreds of thousands of pounds worth of debt.

This is having disastrous effects on licensees, the public and the UK pub industry. Pubs are being forced to close because of this "wet rent".

I would like to formally request that the Competition Commission investigates the excessive price rises foisted upon landlords in recent years, and act decisively to try to prevent more pubs from closure.