Pub Companies

Andrew Stephenson Excerpts

Wednesday 9th January 2013 Commons Chamber

[Andrew Stephenson (Pendle) (Con)]

I was pleased to contribute to the Backbench Business Committee debate on this topic on 12 January last year and want to make a further brief contribution today.

I am a great fan of the British pub, as you know, Mr Deputy Speaker, and I live next door to a pub in my constituency—as you do in the neighbouring constituency. Since the general election, I have worked three shifts behind the bar in various pubs in my constituency to learn more about the challenges they face.

In my speech last year, I talked about the situation in Pendle over the past few years. We have seen seven pubs close in Brierfield, five in Barnoldswick, seven in Nelson, three in Colne and numerous others in the surrounding areas. In that debate, I said:

“I believe that there is increasing evidence that the beer tie, as operated by the large pub companies, plays a significant role in the decline of the pub trade. I point out explicitly that I am referring only to the behaviour of some large pub companies that own more than 500 pubs, not to family-owned breweries, which tend to act much more responsibly.”

I concluded by saying that, although I normally always favour voluntary regulation over statutory regulation,

“I therefore have no hesitation in supporting the motion and calling on the Government to reconsider self-regulation and stop the large pub companies abusing their position.”—[Official Report, 12 January 2012; Vol. 538, c. 367-8.]

[Mr Bellingham]

I congratulate my hon. Friend on the role he has played in this campaign. Does he agree that another initiative the Government should consider is scrapping the escalator in the 2013 Budget? That would save the Government money, because any loss in beer duty revenue would be offset by higher beer sales and increased revenue from employment taxes. Surely the Government should consider that, too.

[Andrew Stephenson]

I agree wholeheartedly with my hon. Friend. I was very pleased that when we came into office we scrapped the increase in cider duty arranged by the previous Government, but I am even more delighted that many hon. Members on both sides of the House are now urging the Government to go further and to scrap completely the beer duty escalator.

[Bob Stewart (Beckenham) (Con)]

May I suggest considering another discrepancy—that supermarkets that sell beer should perhaps pay duty at a different rate? As my hon. Friend the Member for Burton (Andrew Griffiths) suggested earlier, in Ireland they are considering what they call a lid tax, which would encourage people to use pubs rather than preloading on cheap booze from supermarkets. Does my hon. Friend the Member for Pendle (Andrew Stephenson) agree with me?

[Andrew Stephenson]

I agree and think that idea should be considered. I am perhaps in a minority on the Government Benches, in that I support some of the proposals to consider minimum pricing for alcohol, because that would leave unaffected the prices charged in our pubs but tackle those charged by our supermarkets, many of which use alcohol as a loss leader to drive people through the doors. I have spoken to NHS bosses in east Lancashire who also agree with the proposals. Minimum pricing would boost public health and support the pub trade.

[Hugh Bayley (York Central) (Lab)]

I, too, took part in the debate a year ago and I proposed a minimum price for alcohol. In my most recent survey of pubs in my constituency, I put the issue to landlords. Some 97% agreed; 48% thought that a level of 50p per unit was right; and 48% thought that that was too low.

[Andrew Stephenson]

I thank the hon. Gentleman for that intervention. When I talk to landlords across Pendle about the biggest impact on their business—whether the smoking ban or pub companies—they all say that it is supermarkets selling alcohol at below cost price. Although today’s debate is important, we must not lose sight of other issues leading to a decline in the pub trade across the UK.

I warmly welcome yesterday’s Government announcement, which will provide great support to those who have campaigned on the issue and give stability for pubs and tenants. It will be good for growth and the pub trade. I also welcome the fact that the Government are focusing just on large pub companies with more than 500 pubs; that is exactly what I argued for in my speech last year.

The Government have already done a lot to support the industry. They have appointed a Minister for pubs and introduced the community right to buy, so that residents can take over and save failing pubs, as happened with The Greyhound in Barnoldswick. I welcome the reform to licensing laws to make it easier for pubs to play live music and the action on business rates. There are issues on which we can go further, such as the beer duty escalator, but a lot of progress has been made. Those steps, along with those announced yesterday, will be welcomed by tied publicans across Pendle—especially the overarching fair-dealing provision in the new code and the principle that a tied licensee should be no worse off than a free-of-tie licensee.

The new statutory code for the industry will need to get the balance right. I am not against all pub companies or even the big ones; the beer tie is a valid business model with real advantages for many. However, the abuse of the tie has led to real problems so I warmly welcome the Government’s action.

I conclude by paying tribute to CAMRA’s work on the issue. I look forward to seeing several of the east Lancashire branch members at the ninth Pendle beer festival, which runs from 31 January to 2 February at the municipal hall in Colne. If any hon. Members want to come and try any of the huge variety of ales, such as Barlick brewery’s Magic Badger, Reedley Hallows brewery’s Old Laund bitter or the classic Moorhouse’s Pride of Pendle, they will be more than welcome.