Pubcos And The Supply Tie

EDM number 190 in 2008-09, proposed by Timothy Farron on 09/12/2008.
Categorised under the topics of Competition, Service industries and Small businesses.

That this House notes that the Beer Orders, passed in 1989, were intended to increase competition in brewing, wholesaling and retailing; believes however that they have failed to do this, and have instead concentrated ownership of British pubs in the hands of pub companies or Pubcos; further notes that in 1989 the three biggest brewers owned around 20,000 pubs, about a third of the UK's total, and that the three biggest Pubcos own around 20,000 pubs, a notably similar figure; further notes that pubs are closing at the rate of around 36 pubs a week and that from 2006-07 bankruptcies amongst pub landlords increased seven-fold and are set to get worse; notes with concern that Pubcos have failed to adopt the recommendations of the Trade and Industry Select Committee, namely that rents should be sustainable; further notes that tied tenants should not be financially worse off than if they were free of tie, that upward-only rent reviews and the gaming machine tie must cease, and that the utmost transparency in all rents and reviews is paramount; and calls on the Department for Business, Enterprise and Regulatory Reform to refer the matter of the supply tie and rent formulation to the Competition Commission with a view to addressing the dominance of the big Pubcos in the pub market.

This motion has been signed by a total of 47 MPs.