Luff: Competition Commission inquiry should not be ruled out

Business and Enterprise Committee (BEC) chairman Peter Luff believes a Competition Commission investigation into the industry should not be ruled out.

Speaking to The Publican​ in the wake of the Office of Fair Trading's (OFT) decision not to take further action on the issue of the beer tie the MP said he was "encouraged" by the industry's efforts to get its own house in order since the hard-hitting BEC report was published.

He added he would reserve judgment on whether he believed a Competition Commission investigation is required until he had heard direct evidence from industry players.

"I just want to wait and see - that is exactly the big question," he said.

"I certainly don't think that possibility should be taken off the table but I just want to assess what progress is actually being made."

He added the committee would reconvene before the end of the year and was keen to hear from the British Beer & Pub Association, the Royal Institution of Chartered Surveyors (RICS) and the newly-formed umbrella group for trade bodies the Independent Pub Confederation (IPC).

"The fact is RICS are making big changes to their rent valuation process and the British Beer & Pub Association is making big changes to its code of conduct.

"These are very welcome developments for tenants but the question is how far do they go? There have certainly been improvements but at the moment I am not quite sure if it is enough.

"We will be talking to the government and encouraging them to respond."

Luff added he was not surprised that the OFT decided to take no action on the beer tie and suggested the body does not "properly understand the industry."

The BEC's report, published earlier this year, was highly critical of relationships between pubcos and their tenants.