MPs call for urgent action against "mercenary" pubcos

MPs from all main parties have mounted a renewed attack on pubcos and called for government intervention, during a lively debate in Parliament today.

Tory MP Nigel Evans, who called the debate to discuss the future of pubs, led the attack on the way the tie is being operated.

"I believe the beer tie today has the pub industry over a barrel and penalises the landlord," he said.

A host of industry issues were covered throughout the hour-and-a half-session at Westminster Hall, but the tie was never far from the lips of MPs.

Evans pointed to the difference in prices tied licensees pay compared to free-of-tie pubs.

The tie could be "oppressive", he added, and needed to be "opened up" as a matter of "urgency".

Opponents of the tie are eagerly awaiting the follow-up report to the Business and Enterprise committe inquiry, due early next month - while the Office of Fair Trading has re-opened its inquiry into the tie following a super-complaint from CAMRA.

Labour MP David Drew today echoed Evans' concerns. He argued that the attitude of pubcos was "even more mercenary" than that of big brewers prior to the Beer Orders.

Drew said it was a problem for pubcos, not licensees, that the companies had invested badly and "caught a cold".

Lib Dem MP Greg Mulholland also called for a fairer system and "transparency". "It's about time the government did something about it," he said.

Shadow Licensing minister Tobias Ellwood said the tie did need to be "reviewed", but added he was glad the industry had "responded positively" to recommendations in last year's Business and Enterprise Committee report.

Current licensing minister Gerry Sutcliffe said it was a "complex" issue, but admitted there are "problems that needed to be addressed" with the tie.

"I know there are colleagues in other departments with concerns," he said. Sutcliffe said the British Beer & Pub Association had tried to tell him it was "not an issue", but he had assured them it was.

New pubs minister John Healey was absent from the debate.

Other issues raised by MPs today included supermarket loss-leading, beer duty, business rates, the price of Sky and the smoking ban.

Strong calls came for draught beer to be singled out for a lower rate of duty to help pubs.

MPs also urged the government to look again at its plans to change the tax regime on pub quiz machines, which could cost the industry £85m.