Gov: Contact OFT with pubco concerns
The Government has told tenants who have examples of anti-competitive behaviour from their pubco to contact the Office of Fair Trading (OFT).
The Government was responding to a petition lodged on the Prime Minister's website calling for the OFT to investigate the pubco model.
The petition was created by Inez Ward - Enterprise lessee at Mavericks in Newquay, Cornwall. The petition received 453 signatures.
"The UK competition framework has established the OFT as an independent statutory body which is responsible for ensuring that markets operate competitively, and it has the powers to investigate and take action if companies are abusing a dominant position in a market or behaving anti-competitively," a Government spokesman said.
"A decision to re-investigate the market is therefore a decision for the OFT to take if it has the appropriate evidence to hand.
"As the petition acknowledges, when this market was last considered the OFT announced that it would not initiate such an investigation, commenting that: 'The market for the supply of beer... has been extensively examined in recent years by the OFT and the Competition Commission. It has been found to be broadly competitive and in a process of development.'
"It is important to note that like many commercial contracts, pub leases and tenancy agreements are often complex and may involve considerable investment having to be made by tenants, as well as the owner of the pub in question.
"However, if you have evidence of anti competitive behaviour in this area then you should contact the OFT direct."
Business and Enterprise Committee
The OFT also rejected a call from Lib Dem MP Tim Farron to investigate the pubco model earlier this year.
The OFT told Farron that pubco lease agreements "do not raise competition concerns" and it would not ask the Competition Commission to investigate.
However, the Business and Enterprise Committee is to re-visit the original 2004 pubco inquiry to examine what progress has been made this Autumn.
