IPC: major tie reform needed
Trade umbrella group the Independent Pub Confederation (IPC) has told the government reform of the beer tie is needed now to help British pubs.
In a paper released today, the group - which was formed when mediation talks designed to solve industry issues broke down - has outlined its policy.
As well as demanding action on the tie, the IPC also wants the Competition Commission to investigate the market.
An IPC statement said: "Unfair operation of tie arrangements, particularly by large pub companies, is a fundamental reason so many pubs are closing and publicans and consumers are suffering.
"Any credible solution to the problems faced by the UK pub sector must include substantive reform of the tie.
"Following the failure of mediation and repeated failed attempts at self regulation the Independent Pub Confederation is now calling for government intervention and a Competition Commission market investigation."
Last week The Publican revealed how talk of the tie was prevented during mediation sessions by British Beer & Pub Association lawyers who said it would be against competition law.
The IPC was formed during that process and members include CAMRA, the Association of Licensed Multiple Retailers (ALMR), the Society of Independent Brewers, the Guild of Master Victuallers and Fair Pint.
The policy statement says that two thirds of all pub closures this year have been in the tenanted and leased sector, where most pubs are in tied relationships with landlords.
It states: "Tied lessees are therefore at a significant competitive disadvantage because of the way in which the tie is exploited by the pubco landlords and super-regional brewers to drive higher prices for beer and rents."
The IPC is also calling for:
• Tied arrangements for fruit and quiz machines to be removed from all agreements.
• The introduction of a new independent statutory code of practice to uphold the prime principle that the tied tenant should be no worse off than if free of tie
• Revision of the rent and rate calculation models- in consultation with lessee representatives - to ensure thatestimates of profits adequately reflect operating costs.
