MP and pub company clash over beer overcharging claim
David Cameron is drawn into a dispute between an MP and one of Britain’s biggest pub companies after accusations that beer drinkers are being overcharged for their favourite tipple.
The prime minister said he would “look very carefully” at the claim made by Liberal Democrat MP Greg Mulholland that drinkers had paid £4.3bn more than they should have done at Punch Taverns pubs over the last decade.
Greg Mulholland, MP for Leeds North West and chair of the all-party save the pub group in the House of Commons, said Punch Taverns was involved in “crony capitalism”.
He added: “New figures show that the second largest pub company in this country, Punch Taverns, in their pubs overcharged the British consumer on beer alone by £4.3bn over 10 years. There is clear market manipulation.”
Speaking at prime minister’s questions in the Commons, Mr Cameron said: “I know of your long-standing interest not just in beer, but in pubs and in how pub landlords are treated particularly in the pub companies.
“Let me look very carefully at what you have said, I’m a great believer in a healthy pub industry, they are often the heart of the village, the heart of our communities, and I will look carefully at the beer report which you mention.”
‘Wild accusations’
Punch Taverns, which owns 4,300 pubs across the UK, hit back at Mr Mulholland’s claims and queried his figures.
Andy Slee, central operations director for Punch Taverns said: “This is the latest in a series of wild accusations from an MP who is intent doing damage to an industry that is on the road to recovery.
“There is no truth to what Mr Mulholland says, as there is no legitimate industry source for the type of data he has quoted to the House. We challenge him to produce robust and independent evidence.”
In the Commons, Mr Mulholland referred to research carried out by the Federation of Small Businesses (FSB).
The study, published in October, shows that many publicans are unhappy with their business relationship with the big pub companies (pubcos), from whom they rent premises.
Some 81 per cent of landlords tied to Punch, and 84 per cent tied to Enterprise Inns, felt the companies creamed off too much of their profits.
Adjudicator
In April, the Department for Business, Innovation and Skills published proposals for a new code of practice and adjudicator to ensure that pub tenants are treated fairly by pubcos.
This would would stop pubcos from abusing the “beer tie”, which limits the choice of beers tied tenants can sell. The adjudicator would have the power to enforce the code, investigate breaches, and deal with disputes through possible sanctions and fines.