‘End closed shop on running of pubs’

Shadow business Minister Toby Perkins said a new statutory code to regulate the industry was needed as many landlords were left earning less than £10,000 a year as they were often tied in to buying their drinks from the companies at inflated prices.

He told an Opposition Day debate the market currently operated as an “old fashioned closed shop”, as Labour tabled a Commons motion calling on the Government to bring forward 
legislation in this spring’s Queen’s Speech which would allow 
landlords to opt out of contractual links with large pub companies.

Mr Perkins said: “If the Government doesn’t introduce a Bill 
in the Queen’s Speech, it is impossible to imagine that there will 
be sufficient parliamentary time to pass the Bill in this parliament.

“There is no doubt that the existence of large pub companies that own the vast majority of British pubs and force their licensees to buy beer from them are distorting the market.”

He added: “A beer tie whereby landlords can only buy products from their pub company works for some licensees.

“However, for others it means they can only buy limited products at inflated prices.

“We want every landlord to have the choice of whether to go free of tie.”

Tory MP Andrew Selous (South West Bedfordshire) said landlords were also facing a bad deal when it came to the rights to screen televised sport.

Turning to Mr Perkins, he said: “I have had news today that a pub in my constituency is in difficulty because Sky Sports wants to charge £1,250-a-month to show Sky Sports in the pub.”

Mr Perkins said it was an important point. “As you absolutely highlight, this is something that is incredibly expensive.”