Brighton MPs back pubco Competition Commission probe
Two Brighton Labour MPs have promised to support calls for a Competition Commission inquiry into pubco power.
David Lepper and Dr Des Turner agreed to support the call after they met with their constituent Tony Leonard — licensee with Dominic McCartan at the Hop Poles and the Eagle in Brighton — at the Fair Pint lobby day on Wednesday.
Leonard argued that despite being tied to Greene King, he had to pay nearly 40% more for the brewer's IPA than nearby competitor JD Wetherspoon was selling it for as part of its 99p a pint promotion.
"Some customers think we are pocketing the difference but that couldn't be further from the truth," he said.
The pair also told the MPs that the tie severely restricted the choice of drinks they are able to offer their customers, despite having 18 brewers in Sussex.
David Lepper MP said: "Pubs like The Hop Poles and The Eagle in Brighton are so important for our local communities and for the tourists who come here.
"I want to see these pubs reflecting local tastes and trends in food and what people can drink, which means local ales if the licensee wants to stock them and the local wines which are developing.
"I'm certainly going to contact the Secretary of State for Business asking him to look carefully at the select committee's recent report, in particular asking him to refer the whole issue of the tie to the Competition Commission so it can be properly examined and also asking him to look into an inquiry to ensure fair rents for people with tied houses."
Des Turner MP added: "I very strongly support the case made by local publicans for referring the tie to the Competition Commission. The terms offered by pubcos to their tenants are punitive and often, however hard tenants work, there's no way that they can make a decent income.
"This is grossly unfair. It restricts local choice by preventing them from getting beers from local brewers and the whole situation is radically unsatisfactory. It needs investigation but at the end of the day, the only thing that these companies will understand is legislation to force them to change their ways."
Leonard said it had been a "big decision" to attend the lobby day. "I know that many licensees feel intimidated about standing up to the pubcos. We all worry that we may be singled out for our actions but the situation can't go on as it is. Something has to give and, frankly, the licensees have already given far too much."
