Solving pub industry problems must be sustainable

27th July 2009, 10:17am

Trade unions Unite and Justice for Licensees have both urged the government to help the ailing pub industry, after figures last week showed that pubs are now closing at a rate of 52 a week.

At a meeting with the minister of state for further education, skills, apprenticeships and consumer affairs, Kevin Brennan, Unite officials stressed the fact that while they were committed to the mediation process and to direct engagement with all parties, they were doing so with their eyes open and there should be no delay in any referral to the Competition Commission while this process is ongoing to ensure that the minds of all involved are fully concentrated.

"If the mediation is successful in achieving consensus, there must be some kind of legislative framework to underpin any agreements to ensure that solutions are meaningful and sustainable and we're pleased to get the reassurance from the minister to consider this point," the union said in a statement.

Jennie Formby, Unite national officer for the food and hospitality industry, said: "Our members cannot afford to wait much longer for a solution. We are fully committed to the mediation process and to working with all stakeholders to find a way forward and we must take every opportunity to engage with those who wield the power in the industry. However, there has to be both a fall back position to deal with this issue if mediation is not successful as well as a mechanism to embed any solution on a long term basis.

"We very much welcomed the positive reception from the minister who gave a commitment to consider further how to ensure that any outcomes are sustainable."

Inez Ward from Justice for Licensees said: "Our members are desperate. As our latest evidence shows, for too many it is already too late to save their pubs and their livelihoods. Whilst we are not naïve about the difficulties that face us, we are willing to fully engage at any opportunity in attempts to resolve the issues that face us."

Unite and JFL believe that total abolition of the tie is not the answer but that there needs to be substantial reform to enable not just a fairer distribution of profits but also a fairer pricing structure for consumers.

Related Articles:

• 24 Jul 2009 - Beer ties and the Office of Fair Trading
• 24 Jul 2009 - 'Super-Complaint' prompts OFT probe into pub market
• 22 Jul 2009 - Restaurant, pub and bar groups 'surviving' the recession
• 13 May 2009 - MPs call for inquiry into 'beer tie' activity
• 26 Sep 2008 - FSB calls for beer ties to be scrapped

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