David Ward MP

Closing time for the beer tie - Ward

David Ward MP, has called for urgent reform of the "beer tie", which forces publicans to buy beer at inflated rate from pub owners.

This morning, David Ward questioned representatives of pub industry bodies and the two largest pub companies (pubcos) - Enterprise Inns and Punch Taverns - as part of a Business, Innovation and Skills Select Committee inquiry into the issue.

The inquiry aims to establish whether pubcos have complied with the recommendations made by the Committee in 2010, including offering a genuine "free of tie" option to tenants and allowing pubs to offer a "guest beer".

Commenting after today's evidence session, David Ward said:

"The Committee set very clear tests for the pub companies. Judging by the evidence that we have seen these tests have been failed and pubcos are continuing to abuse the power that they wield over their tenants."

Last week David met with Bradford pubco tenants and representatives from the Bradford branch of the Campaign for Real Ale (CAMRA), who are also calling for the tie to be reformed.

David said:

"The key demand of the Committee was for pubcos to offer a genuine 'free of tie' to their tenants, allowing them pay market rents without being tied to buy beer and products with a huge mark up. Tenants are saying that this hasn't happened and I think that now the Government has to act."

"The tie is meant to be a mutually-beneficial partnership, but instead it has been used to take more and more from each pub, to the point where it is impossible for many tenants to make a living. As the Business Secretary has said, the pub companies remain on "probation" and that probation is about to come to an end."