MP in beer costs plea (From York Press)
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MP in beer costs plea
9:10am Saturday 14th January 2012 in Pints of View
A YORK MP has criticised the Government’s response to calls for action to be taken to prevent pubs being overcharged for beer.
The Parliamentary Business, Industry and Skills select committee has recommended tenants should be given the option of choosing which supplier they buy from, ending the “beer tie” situation, but pub companies failed to commit to it and it will not be enforced through Government regulation.
York Central MP Hugh Bayley told a backbench Westminster debate the Government’s response was “out of touch”.
He said: “Pubs are an essential part of York’s heritage, are enjoyed by local people, attract thousands of tourists to the city and contribute to the local economy. I conducted a survey of 160 pubs and clubs in York and more than 40 per cent said the decline in their business was due to pub companies increasing prices disproportionately. Pubs are closing because of the stranglehold companies have over them and it needs to be sorted out, so I am very disappointed the Government is not backing the select committee’s recommendations.”
JaseH says...
11:24am Sat 14 Jan 12
The price of beer to a tied pub is in some cases up to 50% dearer than to a free trader but to look at the flip side of the coin the lease premiums and rents charged for tied house are much cheaper than for free of tie.
Essentially the beer price is rentalised so the pub co's can maintain their profit levels.
If the beer tie is removed by government regulation then all that will happen is that the pub co's will increase the rent by a significant margin to maintain the same profitability making the fixed costs of a pub too much to bear at the quieter times of the year.
There is plainley an issue to be looked at concerning the beer tie but if its done without thought to the future there will be many more closures in an already harsh trading environment.