Gov't takes hands-off view on pubcos
The Government has distanced itself from possible changes to the pubco model, claiming it is not its role to interfere in the market.
The message comes from Licensing Minister Gerry Sutcliffe in a letter to high-profile pub campaigner and Enterprise lessee Inez Ward.
It's a significant statement as the Government may be asked to intervene to curb the power of pub companies and alter the tie by the Business & Enterprise Committee, which is due to release its report into pubcos this month.
It also comes as a new report from the Institute for Public Policy Research called for a mandatory pubco code of conduct to ensure rents are fair and tenants have access to affordable arbitration. Such action would require Government intervention.
Ward, of Mavericks in Newquay, Cornwall, had written to all three political party leaders on behalf of campaign group Justice for Licensees in November last year, but has only just received a reply from Labour.
She had asked the parties how they would stem the flow of pub closures by improving the pubco/tenant relationship.
Ward also asked about the possibility of minimum pricing to curb cheap supermarket alcohol sales, and Sutcliffe's response backs Gordon Brown's claims that this is not on the cards.
"We should not interfere in the market on issues of competition lightly," said Sutcliffe.
"The UK's competition authorities operate independently of Government precisely because of the need for objective, impartial and expert views on issues to do with fairness in the market.
"I realise that you may not agree with their conclusions, but the Office of Fair Trading and the Competition Commission have in recent years looked into competition matters concerning both the supply of groceries and the operation of pub companies."
Ward, who was a guest speaker at the launch of the All-Party Parliamentary Save the Pub Group on Tuesday, said: "Pubs have already been burdened by a mass of red tape. Perhaps Mr Sutcliffe should get out and speak to a few licensees.
"Let's hope the Business and Enterprise Committee inquiry does recommend the Government take action on the pubco/tenant relationship. Licensees are in real trouble out there."
