'Fairer discounts can save the beer tie'

The beer tie can survive as long as licensees are given a bigger share of the discounts — that's the view of one trade leader.

Federation of Licensed Victuallers Associations (FLVA) chief executive Tony Payne, who has not previously publicly commented on the anti-tie Fair Pint Campaign, said that his organisation was not necessarily against the tie.

He voiced similar concerns to his FLVA compatriot and experienced host Dennis Griffiths that ending the tie would spark an increase in rents and place too much power in the hands of the brewers.

"I think to get the best deal from a brewer, you would tie yourself to one and then you get an even more limited selection of beers," he said.

"Free trade loans can also be as onerous, or even more so, than pubco agreements if you don't meet your barrelage targets.

"We understand the Fair Pint campaign but we have concerns over the implications of ending the tie."

Payne took issue with Fair Pint claims that pubs were already over-rented and that any review would see the rent remain the same or decrease if the tie was broken.

"It is not that simple," he said. "The pubco has an agreed, signed-off rent. Most pubcos say they do not enforce upwards only rent clauses but they are still written in the leases."

He added: "We are not here to fight for the pubcos but we have concerns.

"We have said all along that what we want is a fair share of the discounts for tenants. We are not against the tie as long as licensees get that."

The Business and Enterprise Committee inquiry into pubco power is due to publish its report in late April/early May.