Pub goers set to benefit from abolition of land agreements exclusion order

14th January 2010, 8:57am

CAMRA, the Campaign for Real Ale, has welcomed the Government's decision to revoke the Land Agreements Exclusion Order 2004.

The consumer group has been campaigning for its revocation since last summer as part of its campaign to reform the beer tie to address a lack of competition in the pub sector in order to deliver a fair deal to the pub goer.

Large pub operating companies, principally those with 500 or more pubs, will now need to work to prove that their beer tie agreements are fully compliant with competition law. 

Currently tied landlords are unable to buy beer from brewers of their own choice and are forced to pay prices inflated by around 50p a pint. The Government consultation response states that revocation of the Order will promote fairer and more open markets and a better deal for consumers through improved prices, wider choice, greater investment and higher standards of customer service. 

Mike Benner, chief executive, said: "This is very positive news for pub-goers, small brewers and struggling lessees. The Order is an anomaly which has for too long given legal cover to companies which are party to potentially anti-competitive agreements. The large pub owning companies will now have to review their existing beer tie arrangements in the full knowledge that they will be liable to severe penalties if it is subsequently proven that they have breached Competition Law. 

"CAMRA remains supportive of the beer tie model provided that it offers a fair share of benefits to consumers through greater choice, price competition and quality. We now urge the large pub owning companies to publicly commit to delivering on the basic principle that a tied tenant should be no worse off than they would be if free of tie."

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