Luff expects industry referral decision within the month

Conservative MP and chairman of the Business & Enterprise Select Committee (BEC) Peter Luff said the government was likely to respond early next month on whether it proposes to refer the pub industry to the Competition Commission.

Speaking to The Publican ​last night Luff, whose committee's hard-hitting report on pub trade practices shook the industry earlier this year, said he expected to hear from ministers before the next round of BEC evidence sessions, which are understood to be taking place on December 8.

Following the Office of Fair Trading's (OFT) latest report on the sector, which concluded there were no serious competitive issues to be addressed, Luff refused to rule out a referral to the competition watchdog.

BEC would be publishing its final report in January next year, Luff said, adding he was encouraged by the creation of the Independent Pub Confederation.

"It's good to see the establishment of a common voice for the industry," he said.

Luff warned that despite moves by some in the trade to smarten up their act he planned to "keep up the pressure on the industry".

The industry had a history of not fulfilling its obligations, Luff argued, pointing to the 2004 TISC report, many of whose conclusions he said the industry had ignored.

"We on the Business & Enterprise Select Committee feel we've made a lot of progress in getting the industry to change, but companies are not off the hook. If they think they are [following the recent OFT report] they are wrong.

"The OFT did not give the industry a clean bill of health," he added.