Pub Companies

Susan Elan Jones Excerpts

Thursday 12th January 2012 Commons Chamber

[Lorely Burt]

I agree with my hon. Friend to a degree, but the principle of the tie is the same. We need to make sure that the tie operates fairly.

These problems must stop, but should the answer be legally to require companies to offer a free-of-tie option? The balance has indisputably tipped too far towards the landlord, but I think we are tipping the baby out with the bathwater. For the breweries, what would be the point of having their own pubs if they could not impose a tie? Why would they go to the trouble of buying and refurbishing property and recruiting suitable tenants only for those tenants to start in competition against them, selling someone else’s beer? Breweries have been anxiously awaiting the Government proposals because they want to invest in the industry, but they will not do that if they cannot keep the tie.

[Susan Elan Jones (Clwyd South) (Lab)]

Does the hon. Lady accept that one problem with the current situation is that it prejudices against local ales? I am thinking of McGivern ales in Ruabon. Its ale is hugely popular and I would like to see more pubs selling it, but the current situation prejudices against that.

[Lorely Burt]

Indeed, but the Office of Fair Trading report found that there was not detriment to the consumer in response to the tie. The pubs I go to tend to have all sorts of guest ales as well, so there is still that possibility.