Pub companies: follow-up - Business, Innovation and Skills Committee Contents

Memorandum submitted by The Calveley Arms

  I have been watching with anticipation at the many reports referring to Pubcos and yet no action has been taken by the Government to end this practice of squeezing the tenants with the beer tie and high rents. I am an Enterprise Inns tenant and have asked for assistance from Enterprise through the recession. I have not received any financial or management assistance whatsoever, I first requested assistance in July 2008 they did offer a small rent reduction for three months but only on the basis that I signed a full tie agreement with them when costed out I would have been in the region of £6-7k worse off a year. Where is the sense in that, not surprisingly I did not sign and hence no assistance from them.

  The beer tie means I pay Enterprise on average for a barrel of beer somewhere in the region of £100 to £110 per barrel of nine gallons which on the open market I can purchase for as little as £58 per barrel, now where is the fairness in that? If the wholesale prices were controlled we would be able to retail at realistic and competitive prices to our customers. This would encourage them to come back to pubs instead of sitting at home drinking cheap beer purchased from the supermarkets. The large supermarkets have already seen off the independent petrol, newsagents, greengrocers, butchers retailers on the high street now they are having a go at ridding the traditional English Pub. When will the Government stop this unfair trading of huge corporations? This surely contravenes the EEC competition laws.

  I do hope my comments above will stir you to investigate further and make recommendations to the Government and Peter Mandelson to bring an end to this unfair practice soon before more of us lose our livelihoods and indeed all our possessions and families. To date so much misery has been brought about, it must stop now.

27 October 2009

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