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OFT
re-opens inquiry into UK pubs market
Issued:
Friday February 5th 2010
Status:
For immediate use
CAMRA,
the Campaign for Real Ale, has reached
agreement with the Office of Fair
Trading (OFT) to stay its appeal to the
Competition Appeal Tribunal challenging
the OFT’s initial response to
CAMRA’s super-complaint in October
2009. CAMRA’s appeal is now stayed
until Sunday August 1st 2010
to enable the OFT to consider further
evidence of anti-competitive behaviour
by the large pub owning companies. The
OFT will now conduct an open public
consultation before reaching a final
decision.
CAMRA’s super-complaint argued that
anti-competitive practices are inflating
pub beer prices by around 50 pence a
pint, restricting consumer choice and
leading to chronic underinvestment in
the nation’s pubs.
Mike Benner, CAMRA Chief Executive,
said:
‘We
are delighted that the OFT has responded
to our appeal by agreeing to conduct an
open consultation and I encourage all
parties to use this opportunity to
submit further evidence of
anti-competitive practice. The
consultation will lead to a new and
final decision from the OFT. We are
hopeful that on re-examination of the
pubs market the OFT will decide to act
against anti-competitive behaviour in
order to deliver a fair deal for
consumers. CAMRA looks forward to
working with the OFT to deliver reform
of the beer tie so that the pub market
works in the interests of consumers.’
CAMRA’s
fundraising appeal for the reform of the
beer tie, which raised over £8,000
since January, will be suspended during
the consultation period. The funds will
be put towards CAMRA’s legal fees.
CAMRA reserves the right to re-activate
its appeal should it be dissatisfied
with the OFT’s final decision
following the consultation.
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
50 pence 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 ba sic principle that
a tied tenant should be no worse off
than they would be if free of tie.’
END
Notes
to editors-
Following
CAMRA's super complaint, 'A Fair Share
for the Consumer', last July, the Office
of Fair Trading decided in October to
take no further action regarding
competition in the UK pubs market. CAMRA
is currently appealing the OFT decision
through the Competition Appeal Tribunal.
CAMRA,
the Campaign for Real Ale, has announced
it will issue a legal challenge to the
Office of Fair Trading’s decision to
reject its super-complaint on
anti-competitive practices in the UK pub
market. CAMRA is pledging funds to the
appeal, but is depending on consumers
helping to raise further funds to ensure
this vital legal challenge can stand the
best chance of success.
In
October the consumer group criticised
the Office of Fair Trading (OFT) for
failing to protect consumers by taking
no further action to address consumer
detriment in the pub market following
CAMRA’s super-complaint submitted in
July.
Under
the Enterprise Act 2002, CAMRA is
entitled to appeal the OFT’s decision
to the Competition Appeals Tribunal, and
has decided upon this course of action
to continue fighting anti-competitive
practices in the UK pub market.
From
Tuesday January 5th 2010,
CAMRA is calling upon consumers to visit
the CAMRA website (www.camra.org.uk)
and contribute to the ‘Consumers v.
OFT Pub Market Ruling’
Campaign
Fund.
Mike
Benner, CAMRA Chief Executive, said:
‘CAMRA
has taken the decision to appeal due to
the inability of the OFT to deal with
the problems affecting the UK pub
sector.
‘CAMRA’s
super-complaint to the OFT was based on
securing a fair deal for the pub-goer,
and building a sustainable future for
Britain ’s pubs. However, we believe
the OFT did not take reasonable steps to
understand the pub sector, and more
generally why over 50 pubs are closing
per week across the UK .
‘We’ve
seen the consumer watchdog scrutinised
in previous years with the success of
the Association of Convenience Stores’
appeal in 2005 in overturning the
OFT’s decision at Tribunal. Pending
the success of our appeal, CAMRA remains
optimistic of Government intervention or
a referral to the Competition Commission
for a full investigation into the UK pub
market.’
Bob
Young, a former member of the Monopolies
and Mergers Commission and respected
Principal of Europe Economics, has said
the OFT’s response was “as
inadequate as CAMRA’s super-complaint
was compelling. The
OFT has not seriously considered whether
there is fair competition at a local
level which ensures that consumers, or
pub landlords for that matter, get the
best deal. This is a critical
shortcoming in the OFT's response to
CAMRA."
Mike
Benner concluded:
‘We
now urge consumers and associated trade
bodies to get behind our ‘Consumers v.
OFT Pub Market Ruling’ Campaign Fund
in the New Year and support our
appeal.’
CAMRA
has today written to the Chancellor
asking him to end the special treatment
of spirits in order to fund a reduction
in beer duty and a zero rate of duty for
beers 2.8% abv or below and to help
compensate for the forthcoming increase
in VAT. Following last year’s
Pre-Budget Report excise duty on beer,
wine and cider was increased by 8%
whilst spirits were let off lightly with
a rise of only 4%.
Mike
Benner, Chief Executive of CAMRA, said
‘
UK beer duty has been increased by 52%
since the current Government came to
power in 1997 whilst spirit duty has
increased by only 19%. The 4% duty
concession given to the spirits lobby
following last year’s Pre-Budget
Report should be withdrawn to fund a
fair deal for beer and pubs. In the
longer term, the difference in the duty
rate for spirits and lower alcohol
categories should be restored to the
levels that Labour inherited when they
came to power in 1997.
‘The
money generated from reversing the
special treatment of spirits should be
used to scrap duty on low strength beers
and to reduce the main rate of excise
duty on beer. Unlike spirits, beer is
the mainstay product of community pubs
which simply cannot afford further price
increases. Community pubs provide a safe
and social environment for people to
relax with a drink and play a major role
in community life. Community pubs should
not be made to suffer as a result of
unfair rises in beer duty, while spirits
get off lightly.
‘Any
reductions in beer duty must be fully
passed on by pub owning companies to
their tied publicans and therefore the
consumer. Government should make it
clear that it will stamp down hard on
profiteering, through new competition
legislation if necessary.
‘There
is a common misconception in the UK that
spirits are synonymous with whisky. In
fact, whisky accounts for only about 10%
of spirit sales in the UK; with alcopops
and white spirits (vodka, white rum and
gin) making up the lion’s share of
sales in pubs.’
CAMRA,
the Campaign for Real Ale, has announced
the four finalists which will fight it
out to be named ‘Best Pub in Britain
’.
CAMRA’s
National Pub of the Year competition has
been running throughout 2009. CAMRA
members assess thousands of pubs across
the UK , scoring on various aspects
which make a great pub, including the
welcome, service, atmosphere, customer
mix (i.e. 18-80 year olds), décor and,
of course, the quality of the real ale.
The
four CAMRA National Pub of the Year 2009
finalists are-
Royal
Oak Inn,
Wantage, Oxon , OX12 8DF
Tel. 01235 763129, www.royaloakwantage.co.uk
Pub
description from Good Beer Guide 2010-
'Photographs
of ships bearing the pub's name adorn
the walls in this street-corner pub. The
lounge bar features a wrought-iron
trelliswork, largely hidden by over 300
pump clips. The smaller public bar
attracts a younger crowd. A mecca for
the discerning drinker, the pub is a
primary outlet for Pitstop and West
Berks ales in the area- two beers carry
the landlord's name.'
Paul
Hexter, Royal Oak landlord, said:
‘We
are thrilled to be in the final. I’ve
been promoting real ale for the 26 years
I’ve been at the Royal Oak, and
having won the Regional award twice
before, it’s great to reach the
National final. Our regulars are really
thrilled for us, and to celebrate we are
cracking open a few aged bottled
beers!’
Crown
Hotel,
Worthington , Gtr Manchester , WN1 2XF
Tel. 0800 068 6678, www.thecrownatworthington.co.uk
Pub
description from Good Beer Guide 2010-
'Local
CAMRA Pub of the Year 2006 and 2008,
this country inn offers seven cask beers
and acts as the brewery tap for Prospect
beers. High quality home-cooked food is
served in the bar and conservatory
restaurant, while a large decked sun
terrace at the rear has patio heaters
for cooler evenings. Mini beer festivals
are held about four times a year.'
Daniel
Prince, Crown Hotel licensee, said:
‘We
are really pleased with this achievement
and it’s a real boost for everyone at
the pub, and for the beer drinking folk
in Wigan . It puts everyone in a good
mood, and it helps us to raise our game.
With a lot of hard work we’ve turned
this pub around from what it was a few
years ago. Selling good beer is good
business.’
Royal
Oak ,
Friday Street, West Sussex , RH12 4QA
Tel. 01293 871393, www.theroyaloakrusper.co.uk
Pub
description from Good Beer Guide 2010-
'A
lovely, isolated, low-beamed, narrow
free house that is well worth finding,
with seven handpumps for real ale, three
for cider and two for perry. Ales are
usually from local micro-breweries and
are constantly changing. CAMRA National
Pub of the Year Runner-Up in 2009. This
is a real gem.'
Sarah
Blunden, Royal Oak landlady, said:
‘We
are very proud to be in the running for
the title again. I do feel, however,
that I accept these awards on behalf of
all the locals who regularly use this
pub. Our pub is about people as well as
beer and I think we have the best of
both.’
Kelham
Island Tavern,
Sheffield, South Yorkshire , S3 8RW
Tel. 0114 272 2482, www.kelhamislandtavern.co.uk
Pub
description from Good Beer Guide 2010-
'Selected
as CAMRA's National Pub of the Year in
2008 after previously picking up many
local and regional awards, this small
gem was rescued from dereliction as
recently as 2002. An impressive 10
permanent handpumps include two that
always dispense a mild and a
stout/porter, so you are sure to find
something to suit your mood. In the
warmer months you can relax in the pub's
multi-award winning beer garden.'
Trevor
Wraith, Kelham Island Tavern licensee,
said:
‘Since
winning the National award last year, we
have been working to the same pattern,
always keeping the beer of a consistent
quality. It’s marvellous to be in the
final again this year, and we will be
sticking to our formula, which involves
keeping our staff well-informed and
passionate about their beer.’
Julian
Hough, CAMRA Pubs Director, said:
‘This
is a really strong year for the
competition, with four outstanding
community pubs vying for the National
title. These pubs have got to the final
after being judged on their quality many
times throughout the year by CAMRA
branch members and regional directors.
It’s going to be very difficult to
decide on an overall winner, as I know
each finalist brings great pleasure to a
lot of people, not least within their
respective local communities.’
The
winner of the CAMRA National Pub of the
Year 2009 is to be announced in
mid-February 2010.
K.L.Wells
Pubs
/ Press
& Publicity Officer
If
you have any Press & Publicity
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