CAMRA calls the OFT 'blinkered' as beer tie problems are dismissed

14th October 2010, 10:05am

CAMRA, the Campaign for Real Ale, is keeping up the pressure to secure reform of the beer tie despite today's announcement by the Office of Fair Trading (OFT) saying that it will take no action.

The OFT has concluded that the pub sector in the UK is competitive overall and it has not found evidence of competition problems that are having a significant adverse impact on consumers. It said there are insufficient grounds to justify further OFT action.

A key issue in CAMRA's complaint was the impact of the 'beer tie', which requires pub lessees to purchase beer solely through their pub-owning company landlord.

Mike Benner, CAMRA Chief Executive, said the decision is "remarkable given that the Commons Business Select Committee and the government recognise that a competition problem exists and are working to find a fair solution". 

Benner added: "CAMRA's initial reaction to the OFT's decision is that it is based on a blinkered and selective consideration of the evidence. Today's OFT decision does nothing to change the fact that the Business Secretary, Vince Cable MP, has publicly stated that the pub companies are on probation and that they will face legislative action if they fail to reform by June 2011."

The OFT said it understood the importance of local pubs and their standing in communities but that it believes the pub industry is working well to address the concerns of contractual relationships between pubcos and licensees.

Brigid Simmonds, chief executive of the British Beer & Pub Association, said she hopes the final decision will help the industry move on.

"We are pleased with the reconfirmation of OFT's decision. We would hope this would help draw a line under many issues and enable the industry to move forward.

"Just as importantly, there are a number of critical priorities for the industry to focus on in its engagement with Government over the next few months. The proposed changes to the Licensing Act, the review of the alcohol tax system and the next phase of the Government's alcohol policy agenda all present very real threats and opportunities. We need to ensure our industry comes together and is well mobilised in taking its case to Government, if we are to try and secure the best possible outcomes on these vital issues."

Related Articles:

• 08 Feb 2010 - OFT opens consultation on CAMRA'S beer tie
• 06 Jan 2010 - CAMRA urges pub goers to donate to its 'Consumers v. OFT' campaign fund
• 06 Nov 2009 - CAMRA challenges Office of Fair Trading decision on pub sector
• 22 Oct 2009 - Office of Fair Trading gives beer ties the all-clear
• 24 Jul 2009 - Beer ties and the Office of Fair Trading
• 24 Jul 2009 - 'Super-Complaint' prompts OFT probe into pub market
• 13 May 2009 - MPs call for inquiry into 'beer tie' activity

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