MPs give industry final chance to reform

MPs have given the industry a final chance to reform itself before taking any further action.

The Business, Innovations and Skills Committee (BISC) released its follow up report ​ on pubco power today and said that while a Competition Commission reference may be necessary it will give the industry until June 2011 to sort its issues out.

The report states: "We have grave doubts about the industry's willingness to do enough voluntarily to prevent statutory or regulatory intervention. We urge all the players to work together constructively to achieve this outcome."

It claims previous British Beer & Pub Association codes of practice were not "sufficiently robust" and adds that the group's framework code of practice has made modest progress in addressing some of these shortcomings.

MPs have also urged the Office of Fair Trading to "look more carefully" at CAMRA's super-complaint which has been re-opened.

"The serious imbalance in power between pub companies and lessees that has prompted this report and the two earlier ones must be a matter of deep concern to policy makers who are working to ensure that markets work fairly to the benefit of consumers," the report states.

The report welcomes the progress being made by Royal Institute of Chartered Surveyors to address guidance on valuations.

"The acid test of its success will be the extent to which the new guidance provides clarity on valuations and the principle that a tied tenant should be no worse off than a free of tie tenant," the report states.

In reference to Brulines it adds: "The framework code also goes some way to reconciling problems with flow monitoring equipment by the inclusion of a requirement for additional evidence above and beyond the data from flow monitoring equipment in any accusation of buying outside of the tie.

"That said, we believe that additional evidence must be physical and not just a signed confession from the lessee.

It adds: "We conclude that, if real reform is not delivered, legislation to provide statutory regulation should be recommended. Furthermore, we remain of the view that a reference to the Competition Commission may yet be necessary to resolve these long-standing issues."