Lib Dem peer Razall slams tie

A Liberal Democrat peer expressed serious concerns over the beer tie, and pressed the Government into saying how it will act.

In a debate in the House of Lords yesterday, Lord Razzall said: "Does the Minister accept that since the so-called beer orders were introduced in 1989, there has been a significant change in the market that often disadvantages particularly the consumer or the tenant of public houses?"

He also flags up the Business & Enterprise Committee's recommendation that the "Secretary of State should refer the matter to the Competition Commission for urgent investigation by a body which has no vested interest in 'defending its earlier position'?"

Communications Minister Lord Carter of Barnes said his department would respond within 60 days of the Bec report's release.

He also highlighted the Campaign for Real Ale's intention to submit a super complaint to the Office of Fair Trading.

Carter said: "The position of the competition authorities on this is rightly that if there is new evidence that there has been a significant change in circumstances, the evidence should be submitted.

"We have seen an indication that that evidence will be provided in the case of a super-complaint. If that results in the need for stronger action, then stronger action will duly be considered."

Another Lib Dem peer, Lord Cotter, called for "strong and clear action".

He stated that since the last Trade & Industry investigation in 2004, which concluded that the industry should comply with a voluntary code of practice, 99% of licensees surveyed by the FSB said, "the situation had not changed or improved".