Camra report wants OFT to probe pubcos
A new think tank report backs calls from the Business and Enterprise Committee for "serious reform" of the pubco model.
The report, Pubs and Places: The social value of community pubs, calls for an Office of Fair Trading Review of the beer tie and rebalancing of the pubco/tenant relationship.
It has been compiled by the Institute of Public Policy Research (IPPR) and backed by the Campaign for Real Ale (Camra).
The report wants pubcos to be forced to publish discounts that aren't passed on to each of their pubs, and that this number should be included in rent calculations. According to the document, tenants should be permitted to buy guest beers out of tie. The number of pubs owned by a single company should be capped, thereby "reducing the dominance of the large pubcos".
It calls for a mandatory code of conduct to be implemented when it comes to rent — to ensure that they are calculated in a "fair and transparent fashion" and recommends an end to the machine tie.
In its conclusion the report concedes "there is no magic bullet" to reverse the "accelerating rate of pub closures" but states that while "some people argue that the closures are entirely the Government's fault, others point the finger at large pub companies", but "the truth is more complicated than that".
The document states: "Greater support from Government should be matched by serious reform to the way the industry currently operates, so that viable community pubs are not put out of business because of excessively high rents or beer prices."
Other recommendations include:
• A 50% cut in business rates payable by community pubs
• That community pubs should be eligible for third sector funding
• Planning reforms to prevent local pubs being sold by owners for housing
• A ban on restricted covenants
• Give tenants first refusal to buy their pubs
• Minimum pricing to reduce the on and off-trade differential
• A beer duty freeze
• Diversification, with Government help
• Improved training and personal development for the sector
