20 July 2009

Paul Murphy backs Fair Pint campaign

Paul Murphy has met with local pub landlords and agreed to support the 'Fair Pint Campaign'.

The campaign seeks to get a fairer deal for landlords and consumers who suffer as a result of 'tied lease agreements'.

Large 'pubcos' own about half of the pubs in Britain, tieing the tenant landlord into buying beer from them and paying a proportion of their profits back to them in rent. Concerns about the behaviour of the Pubcos have now led to calls for an investigation by the Competition Commission.

After attending a meeting about the issue, Paul Murphy has written to the Department for Business to support the call for an enquiry.

The Torfaen MP said: "I have met with tenant landlords from my constituency who are deeply unhappy with the behaviour of their pubco owners. They believe that the matter should be investigated by the Competition Commission under section 159 of the Enterprise Act 2002. Having read the report of the Business and Enterprise Committee into Pub Companies, which recommends exactly that, I have to say that I have a great deal of sympathy with my constituents’ case."

Mr Murphy added: "I have heard evidence of combined rentals that appear to be exorbitant, compulsory insurance policies that seem unfair, drink tie-ins that work to the detriment of tenant landlords and pub customers, and rent rises in the middle of tough economic conditions for pubs."

"Therefore, whilst I understand that all of the problems of the sector cannot be attributed to this issue, I feel that it warrants further investigation. I also believe that such an investigation must be conducted by the Competition Commission rather than the OFT, to gain a wider insight into the effect on the small businesses as well as consumers. Unless this issue is addressed, I believe that there is the real danger of viable small businesses failing unnecessarily."

Site designed and developed by Public Impact

Site promoted and issued on his own behalf by Paul Murphy MP. 73 Upper Trosnant Street, Pontypool, Torfaen NP4 8AU.
This site is paid for by the Communications Allowance available to MPs. Site admin