Labour big gun urges pubco probe

A former Cabinet Secretary has called for the Government to instigate a Competition Commission inquiry into pubcos.

Paul Murphy has written to Business Minister and neighbouring MP Kevin Brennan after meetings with his constituent Phil Jones, son of Enterprise lessees Don and Angela Jones, and other licensees.

The letter from Murphy, Secretary of State for Wales until June and a former Northern Ireland Secretary, says he has met tenants who are "deeply unhappy with the behaviour of their pubco owners" and want a Competition Commission probe.

"I have heard evidence of combined rentals that appear to be exorbitant, compulsory insurance policies that seem unfair, drink tie-ins that work to the detriment of tenant landlords and pub customers, and rent rises in the middle of tough economic conditions for pubs."

The Torfaen MP said the Competition Commission should investigate rather than the Office of Fair Trading, "to gain a wider Insight into the effect on the small businesses as well as consumers".

The Government Department for Business, Innovation and Skills is to decide whether to order a Competition Commission inquiry into pubcos later this year. The move was recommended in the Business and Enterprise Committee's damning report into pub companies.

Don and Angela Jones, whose case was featured on the ITV show How to Blow Your Redundancy Money, have been in dispute with Enterprise about rent at the Open Hearth in Sebastapol.

The pubco offered to reduce it from £56,500 to £42,000, but the couple declined after Cookseys DMP boss David Morgan said £28,360 would be more realistic. Enterprise has paid for an independent valuation at the pub, which takes around £300,000 per year.

Phil Jones said his MP has been "fantastic". "I met with him on three separate occasions. I know he has taken genuine interest."