BISC slams 'unacceptable criticism'

MPs probing pubco power and the beer tie have slammed the "unacceptable criticism" they received during their investigation.

The Business Skills and Innovation Committee (BISC) hit out as the Government confirmed it had not ruled out a reference to the Competition Commission.

The Government's response to the BISC report largely echoes the plan set out by Pubs Minister John Healey last week (Pubcos face new Beer Orders​) — including the threat of a new Beer Order if a free of tie option is not in place by June 2011.

A statement from BISC said it saw the Government's response as "a vindication of the Committee's hard work on this issue over the past two year, work which has been carried out in the face of vociferous and on occasion unacceptable criticism".

It said: "This commitment sends to the pub industry an unambiguous message that, should the new Committee not be satisfied with the industry's measures in 2011, the Government will not hesitate to intervene."

At the Committee's follow-up meeting last December, chairman Peter Luff hit out at the response of the pubcos to its initial report (Luff: I don't feel we can trust pubcos​).

He said that "bullying, threatening and slagging off" was not a good response to the report after citing the reaction and comments from Enterprise Inns chief executive Ted Tuppen, Punch boss Giles Thorley, ex Punch tenanted boss Deborah Kemp and Brulines.

"I am not used to being unable to comment on my own reports for fear of litigation," he said at the time.

Rebalance of power​

Luff welcomed the Government's response. "We see the Government's response to our two reports as a vote of confidence in the select committee system," he said.

"More importantly, we believe its response is very likely to rebalance the relationship between pubcos and lessees in exactly the way we believed was necessary.

"We hope the industry will ensure the effectiveness of the steps it is taking voluntarily — if not the government is clearly committed to act.

"We consider this to be a significant achievement for our Committee and we look forward to our successor Committee continuing our dogged pursuit of reform of the pub industry in the next Parliament."