MP's beer tie Bill to get full debate in Parliament
An MP's bid to force the government to intervene on the beer tie is gathering steam after he received cross-party support in Parliament today.
Liberal Democrat Martin Horwood spoke out about the "unfair" nature of the tie in the Commons today and pointed to a new survey which reveals 91 per cent of licensees are still dissatisfied with the system.
He claimed that if the government fails to step in then more pubs would be led into "oblivion" because of the tie.
Horwood's speech came as part of tabling of a 10-minute rule Bill, a type of private members' Bill. The Bill was passed and will receive a second reading and full debate in the Commons on June 10.
It calls on the coalition to introduce a statutory code of practice to force "certain" pubcos to offer a guest beer option and "the option to become free of tie accompanied by an open market rent review".
Pubcos have until June 2011 to reform, but Horwood said: "June 2011 is not that far away and new research still paints a gloomy picture."
He pointed to a Federation of Small Businesses' (FSB) survey which found that 91 per cent of its tied members do not think the tie "allows them to make a fair profit".
He also claimed that a "quick glance" at the new pubco codes of practice - particularly Punch and Enterprise's - "underlines the inequality of the situation".
Earlier the MP claimed the relationship could not be of "mutual benefit" when a tied licensee has to pay a premium of 40 per cent or more for their beer, and rent was based an "obscure" system of estimated earnings.
Consumer group CAMRA is also backing the Bill. Chief executive Mike Benner said: "A free of tie option accompanied by an open market rent review will ensure that large pub companies cannot exploit tied publicans as if they do so those tied publicans will be able to opt out.
"No company code currently offers a genuine free of tie option at this time, and none provide a guest beer option to all, so it is now down to the government to remove punitive constraints on struggling tied publicans to help avert the current pub closures crisis."
Clive Davenport, the FSB's trade and industry chairman, said: "Tenanted pubs are not given a fair deal from the pubcos that own them, so it is vital that action is taken to make this relationship fairer.
"This Bill would finally help to tackle a failing system and without such urgent action, we could see the pubs at the heart of our communities disappear forever."
