Minister "pleased" OFT has re-opened beer tie inquiry

A government minister has admitted he is "pleased" the Office of Fair Trading (OFT) is re-examining the beer tie, arguing there is a lack of a "consistent" approach by pubcos.

In an exclusive face-to-face interview with The Publican​, Licensing Minister Gerry Sutcliffe said he knew of licensees in his constituency that had been "put in a difficult position" by pubcos.

"The OFT have re-opened the CAMRA appeal and I'm pleased about that... but obviously it's a matter for the competition auhtorities," he said.

Sutcliffe revealed that in a meeting with the British Beer & Pub Association (BBPA), he rejected the group's argument the tie was not an issue.

"I spoke to Brigid Simmonds (chief executive of the BBPA) who was trying to argue that the tie wasn't a problem," he said.

"But I said to her Brigid, it is, because different companies are operating in different ways… what the solutions are a competition issue and that's why it's right the OFT are going to take a look at it."

The minister refused to speculate on whether the tie would end up at the Competition Commission, but added: "The fact that CAMRA feel as strongly as they do shows it is a big issue in the sector".

It comes at a time when the tie is moving up the political agenda again with MPs on the Business, Innovation and Skills expected to report back next week on their follow-up inquiry into pubcos. The tie was also a hot topic at a debate in Parliament yesterday on the pub trade.

The BBPA is hoping a new framework code of practice for its members will show to MPs it is addressing concerns about the tie.

During his interview with The Publican​, Sutcliffe rejected the idea the current Labour government has been bad for pubs - and argued the Tory party would be "completely wrong" to "tear up" the Licensing Act, as it has threatened.

He said it would be wrong to "go back and lose the flexibility" that the licensing regime offers.

And in a warning to the trade over the possibility of a Conservative government, he said: "It would be better to work with the government that you know, than someone who comes in and threatens all sorts."

He also pointed the finger at theTories for the "break up of the industry" in the form of the Beer Orders.

Sutcliffe denied the government was being led by headlines in the Daily Mail​ in its policy towards pubs.

"What we've tried to do is be supportive in the diversification of pubs into food and live music and looking at ways we can support pubs," he said.

"Obviously to see the sector reduce at the rate it does, we will be concerned about that. It's easy to blame government. But I don't think it's government alone that's caused the problem."

Sutcliffe said he believed the "change in people's drinking habits" was the main reason for the record number of pub closures, which has slowed to 39 a week after reaching a high of 52 a week last year.

"People's attitudes are not the same as they were in the past," he said.

On the issue of irresponsible supermarket deals and talk of minimum pricing, he denied there was a "reluctance" among government to act.

He added it was a case of "getting the evidence", but the Department of Health was "looking at the issue".

And hopes of an exemption for pub gigs attracting 100 people or fewer, as proposed by the government, looks unlikely to become law before the general election.

"I don't think it will necessarily come in before the election," he said. "If we have got the timescale right then it could do." But he said the parliamentary reform order would "not be lost" even after the election.

Sutcliffe welcomed John Healey's appointement as pubs minister, saying: "I think it's a step in the right direction and should reinforce that wider view that the government is taking this seriously."