York MP Calls on Government to Regulate Pub Companies
6:01am 12th January 2013
Hugh Bayley, the Labour MP for York Central has been pressing the Government to introduce a statutory code to regulate pub companies relationships with their tenants. Last year the Government told him they did not “consider it appropriate to make a statutory intervention in setting the laws of commercial, contractual relationships”. But this week they did a U-turn and agreed to introduce a statutory code to regulate pub companies, says the MP.
Speaking in the House of Commons yesterday Hugh Bayley congratulated the Government on its change of heart, but said the tie between pubs and a pub company over the supply of beer and other products was unfair and should not be permitted unless the publican asks for such a relationship.
Hugh Bayley MP added:
“I am glad the government have agreed to introduce a statutory code. This is something I have been urging them to do. In July the Minister told me it wasn’t appropriate so the new decision is a big step forward. But I don’t think it goes far enough. The problem is with the tie and the government should get rid of this altogether unless a landlord specifically requests it.
“The tie is unfair when landlords can only buy stock from the pub company. It means they often have to pay £100 more for a barrel of beer than they could get it from a wholesale and then they have to pass the cost onto their customers. Its not just beer, they can only buy nuts, crisps and mixers from the pub company. The pub company makes an unreasonable profit at a cost to the landlords and the customers.”
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