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Proceeding contribution from Martin Horwood (Liberal Democrat) in the House of Commons on Thursday, 12 January 2012. It occurred during Backbench debate on Pub Companies.


Pub Companies

Yes. My correspondent also said:"““The local rep visited at my request this May, only his 3rd visit and I now prefer to deal with him by email to have everything in writing.””" That supports the points that have been made about loss of trust. The letter continued:"““He first volunteered the figures from the brulines system, showing my doubling sales, food has also gone from nothing to a very good business and is the only way to make any money on this lease. I then put to him that at £5.5k breakeven I am paying about £23k rent and £50k through the beer tie. This equates to around 17% return on the value of the property while I will struggle to even repay my investment let alone make a return on it or pay myself an income. When I put to him that unless he rebalanced this I would be selling up and moving on he confirmed that I have a lease in order that I can do this.””" As my correspondent pointed out, the pubco representative would"““make a mean poker player.””" My correspondent continued:"““I'm waiting to see what comes from Westminster…Last resort is to sell up and move on.””" He points out that this is not just about the price of the beer either, saying:"““Aside from paying between 1.5 to 2 times wholesale value within the tie. Enterprise restrict what I can buy, for example I can not have Crabbies Ginger Beer””." I have never heard of that. [Hon. Members: ““Oh dear!””] Other hon. Members obviously have. The letter continues:"““this may seem petty, but Crabbies is heavily marketed and is hence what customers ask for.””" He concludes:"““With a monopoly to supply 7,000 pubs, the service is understandably poor, why would you offer more than a week or 2 payment terms, daily delivery, knowledgeable staff, sale or return, dependable deliveries, useful special offers, volume discounts, why would they? It's not as if I can take my business elsewhere.””" That inequality in the power relationship between struggling small businesses and the major pubcos demonstrates my point.


Secondary information

Type
Proceeding contribution
Reference
538 c387-8 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
Codes of practice Alcoholic drinks Companies Competition Public houses Tenants Tied housing
Link
View this Proceeding contribution on www.publications.parliament.uk