Select Committee on Trade and Industry Written Evidence

Annex 4

SCENARIOS

  1.  The pubco pays no discount to licensee, and shares the machine income.

  2.  The pubco pays no discount, and does not share any of the machine income.

  3.  The pubco pays a £75 per barrel discount to licensee, and shares the machine income.

  4.  The pubco pays a £75 per barrel discount to licensee, and does not share any of the machine income.

ASSUMPTIONS

  1.  The pub has a fair maintainable volume of 240 barrels.

  2.  The pubco machine share is estimated at £3,000.

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Prepared 14 March 2005