Mandelson hears pub redtape fears

Concerns about plans to inflict costly redtape on licensees through the mandatory retailing code were raised by trade chiefs at a meeting with Business Secretary Lord Mandelson yesterday.

Representatives of five alcohol trade groups met Mandelson and Chancellor Alistair Darling to argue for the alcohol duty escalator to be scrapped, and not to increase duty in this year's Budget.

Two meetings were held, one with Alistair Darling and a separate one with Lord Mandelson.

The alcohol retailing code will see mandatory conditions on pubs, including curbs on drinks deals, operating Challenge 21 and offering smaller drinks measures. Councils could also attach more stringent conditions to multiple venues.

It's been slated for adding unnecessary costs for licensees and trade groups are consulting lawyers about the legality of parts, including giving councils powers to set conditions without formal licence reviews.

Wine & Spirit Trade Association chief executive Jeremy Beadles, who attended the meetings, said: "The meeting with Mandelson was more about regulatory issues. We talked about the mandatory code."

He said Mandelson and Darling were in "listening mode". "It was more about listening to what we have to say."

When asked if he expected a favourable outcome from the meetings, Beadles said it was "difficult to tell at the moment".

"They keep their cards close to their chest in the run up to the Budget".

Other trade chiefs at the meeting were:

- Michael Turner, British Beer and Pub Association

- Ian Jamieson, Gin and Vodka Association

- Fenella Tyler, National Association of Cider Makers

- Paul Walsh, Scotch Whisky Association

- Christopher Carson, Wine and Spirit Trade Association

They argued that 75,000 jobs are at risk if the Government goes ahead with its current plans for a duty escalator, which would mean a 2% hike above inflation until 2012.