PUBCOS AND THE SUPPLY TIE

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 indeed have instead concentrated ownership of British pubs in the hands of pub companies or Pubcos; 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 27 pubs a week and that from 2006-07 bankruptcies amongst pub landlords increased seven-fold and is 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 utmost transparency in all rents and reviews is paramount; and calls upon 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.