Fair Pint tells OFT tie is to blame for pub closures

Anti-beer tie campaign group Fair Pint has told the Office of Fair Trading (OFT) the tie is to blame for businesses closing across the country and anti-competitive practices in the trade.

The group submitted a 21-page document to the Office of Trading earlier this week in response to CAMRA's super complaint about the tie.

Fair Pint also argues the tie is forcing beer prices up for pub customers and the gap between free-of-tie and wholesale prices has significantly increased because pub companies are using the tie to increase prices.

Steve Corbett, Fair Pint member and Enterprise Inns lessee, said: "It is clear that the tie is simply being used by pub owning companies to extract income from their struggling tenants.

"It is clear that the legal principle on which the tie rests, that the extra costs which tied tenants face through the tie is counterbalanced by quantifiable benefits leaving tied tenants no left worse of than those who are free of tie, has been ignored by pub owning companies who are solely interested in short term profits rather than the long term future of the industry."

He added: "The pubco model which has also being adopted by most of the brewers with tied estates is an exploitative relationship between and as well as making it difficult for tied tenants to make a living from their pubs, has led to rising prices, less choice and worsening service for consumers.

"It is clear the pub market is not functioning in an efficient and competitive way and that this lack of competition and innovation is putting the future of the whole sector at risk."

Last week the Independent Family Brewers of Britain (IFBB) which represents 27 breweries argues outlawing the tie would lead to further pub closures and the loss of traditional family brewers.

The OFT has 90 days to respond to CAMRA's complaint, which was submitted at the end of July.