Welsh Lib Dems urge beer tie reform

The Welsh arm of the Liberal Democrats have urged reform of the beer tie in its new Save Welsh Pubs campaign.

The group wants to end restrictive covenants on pubs to stop them being used as a pub in the future when they haven't been able to find a new licensee. Lower beer duty and ending future duty rises are also urged.

A spokesman for the national Lib Dems said the party is currently looking into its policy on the beer tie.

Lib Dem Shadow Secretary of State for Wales, Roger Williams MP, pointed to figures showing one in 20 pubs have closed since June 2007. Wales has just over 5% fewer pubs open today than in June 2007.

A statement for the company said: "Tied pub landlords rely on pubcos for their premises and supplies with evidence emerging of overcharging being endemic within the industry, with some pubcos charging double wholesale prices. An 11-gallon keg of Carling can be bought from a wholesaler for £63, whereas pubcos are charging £110-£120 per keg.

"Some pubcos have even placed restrictive covenants on pubs which prevent them from being used as pubs in the future when they haven't been able to find a new landlord."

Williams said: "Reducing the duty on beer would be an excellent first step in helping pubs stay in business, but without action to loosen the grip of pubcos on their tied landlords, it won't save our pubs.

"It is outrageous that pubs are charged extortionate prices for rent and supplies when the industry is suffering so badly. The pubcos are driving potentially successful businesses into the ground, and it is communities that are having to pay the price.

"It is even more of a scandal that when they can't find someone to take on a pub, they are placing covenants to stop them from having any competition, and depriving the community of the possibility of a pub under new ownership."