Camra: OFT better placed to look at tie

The Campaign for Real Ale (Camra) has warned a lengthy Competition Commission investigation will cause "huge disruption".

It said the best option would be an independent economic study into the operation of the beer tie by the Office of Fair Trading before the Government refers it to the Competition Commission.

"While the issue of the beer tie needs to be assessed to ensure fairness to all parties we are not yet convinced of the need for a lengthy Competition Commission Investigation," said Camra chief executive Mike Benner.

"A two to three year investigation would create huge disruption and uncertainty for the UK's pub owners, licensees and consumers. A lengthy investigation may also serve to delay urgent action to deliver fairness to struggling pub licensees and their customers.

"Camra supports the principle of the beer tie provided that the higher prices licensees are required to pay for their beer supplies are balanced by a lower rent, credible business support and the option of stocking a guest beer."

Camra said it welcomed the recommendations to address the inequalities between the bargaining power of pubcos and lessees and the proposal to ban the sale of pubs with restrictive covenants.

"We are delighted that the committee has backed CAMRA's campaign to end the immoral practice of selling pubs with restrictive covenants that prevent them being used as pubs in the future.

"This deplorable practice deprives communities of valued pubs, reduces consumer choice and may ultimately lead to higher pub prices in a particular area due to a lack of competition."

He added: "Camra has long been concerned about the unbalanced relationship between pub companies and lessees and hopes that the Government will look at this issue with great urgency. A mandatory code of conduct providing a set of legally enforceable rights for lessees, particularly relating to rent calculations, would be of huge benefit and should not be delayed until after a lengthy investigation."