CAMRA slams DTI pubcos report

December 22, 2004: A Department of Trade and Industry select committee investigation into the power of pubcos has ruled out the imposition of guest beer regulations, claiming such a move could contravene European competition laws.

CAMRA was one of the organisations giving evidence to the select committee over the past six months and its chief executive, Mike Benner, has described the final report as a "whitewash".

The committee has recommended that the pubcos allow their tenants greater freedom of choice in the products they sell, but without legislation there will be no way of policing this.

"CAMRA will be urging all pubcos to adopt this recommendation and pressing all pubcos to introduce a 'guest beer' clause in their tenants agreements," said Mr Benner.

The MPs, however, argue that if pubs landlords were free to purchase whichever drinks they wished there would be a danger of rents rocketing as the pubcos became nothing more than property companies.

The committee rejected claims that any one pubco or brewery had a dominant position in the market, but it did conclude that beer distribution was being dominated by three big players - Scottish & Newcastle, Carlsberg UK and Trade Team - which presented small brewers wanting to supply tenanted pubs with problems.

The Federation of Small Business, meanwhile, which has a number of members in the licensed trade, said the committee had underestimated both the scale of the problems licensees face and their fundamental cause.

A spokesperson added: ""The fact that licensees only stay at a pubco pub for an average of three years does not make it onto the pages of the report and speaks volumes about the nature of the partnership and who takes the lion's share."

Among the select committee's other findings, it said that the trade organisation the British Beer and Pub Association should revise its code of conduct, to include guidelines on rent reviews, dispute procedures and legal and professional advice for tenants.

It also criticised pubcos that took half the earnings from bar fruit machines as a "last blatant example of profiteering".