Pub Companies

Debate between Ian C. Lucas and Fiona Mactaggart

Thursday 12th January 2012 Commons Chamber

[Ian Lucas]

Absolutely. The inequality in the bargaining power of pub companies and publicans is a central issue. We see that month after month in our constituencies. It is part of the crisis that is happening in town centres and high streets across the country. We must view the debate in the context of the important challenges that we all face, no matter what type of constituency we have.

I looked at this issue in detail before the last general election, when I surveyed publicans throughout my constituency on how their business could be improved. They were vociferous in responding, and one of the overriding themes was the existence of the beer tie. I am therefore astonished that the Government’s response to the Select Committee states that

“the Government therefore considers the debate over ‘tied’ or ‘free-of-tie’ to be largely a distraction. There is nothing in itself that causes the tie to be fundamentally wrong—and, in fact, in some instances, the tied model may be essential to the preservation of small British brewers and local beer—and, with them, British businesses and jobs.”

We have already touched on the position of small brewers. The inequality in the bargaining power of large pub companies and the publicans on our high streets is a central issue.

I was a Minister for regulatory reform before the last general election, and my view is that regulation should be a last resort. As far as I am concerned, this is the last resort, and this case desperately calls for regulation because we have to balance out the unequal bargaining power that is removing real choice from consumers on our high streets. When consumers go to their local pubs they are prevented from purchasing beers that they want because of the existence of the beer tie.

[Fiona Mactaggart (Slough) (Lab)]

I am glad that my hon. Friend is talking about consumers. One of my concerns is that the number of pubs in my constituency has declined since 2005 from 52 to 33, which is not untypical. There is less choice for consumers, partly as a result of this issue.

[Ian Lucas]

That is absolutely right. We know that CAMRA, which has done superb work in this area over many years, takes the view that

“the ‘beer tie’ as operated by the large pub companies is a key driving factor behind the decline of the pub trade.”

These concerns have been recognised over the years by various Select Committee reports. We all know that it is a very complex and difficult matter of long standing and that it is of grave concern to our constituents.

CAMRA goes on to say that the Secretary of State for Business, Innovation and Skills and the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for Kingston and Surbiton (Mr Davey),

“both gave clear Government commitments that if the pub companies failed to meet a deadline for self regulation by June 2011 then they would act to require meaningful reform. These commitments have been broken.”

That is a very serious allegation, and I am sure that the Under-Secretary will want to respond to that in due course.

The commitments were given in the context of the build-up to the last general election. This was a major issue in campaigns in all parts of the House. When the election came there was a broad consensus about what action needed to be taken. It is unfortunate that the parties in government have not carried that consensus through to the implementation of policies that are broadly based and command respect throughout the House.

We know that there is a crisis on the high street and that pubs on those high streets play an extremely important part in a functioning and vibrant local community. The Government have the power to make a real impact on high streets by dealing with this issue, and they must do so simply by fulfilling the commitments they gave before the general election and that Ministers have made since. They need to respect publicans, the pub trade and our high streets and follow through on those commitments.