3rd April 2009
The Fair Pint campaign has hit back at the BBPA’s response to a survey undertaken by the GMB Union showing how the tie and the pubco business model has led to the closure of 1,131 pubs since December 2005, due to huge increases in beer prices charged by pubcos over recent years.
Mark Hastings of the BBPA responded to the report by trying to deny that the pubco model was to blame for closures he stated that: “the tie is unrelated to the problem of pub closures.”
Steve Corbett a tied landlord and a member of the Fair Pint Campaign said:
"The BBPA’s attempt to deny that the pubco model is the main reason for the current levels of pub closures beggars belief.”
"To deny that the that way that pubcos have squeezed tenants with massive increases in beer prices and unsustainable levels of rent has anything to do with pub closures shows that either Mr. Hastings either doesn’t understand the industry he claims to be representing or is too concerned about offending his pubco members to be honest about what is happening in the sector.
"The BBPA has clearly showed that it is incapable of acting in general interests of the beer and pub sector. The association needs to decide if it is going to stand up for the long term interests of beer and pubs or if it is content to be a voice of the property interests whose broken business model is causing the sector enormous damage."
Notes for Editors
1. The GMB published a study yesterday showing how the pubcos were charging up to 80p a pint more for beer than free of tie prices and how they were continuing to increase prices despite falling sales. The study also pointed out how the business model of the two biggest pubcos, Punch and Enterprise meant that they needed to extract over£50,000 per pub per year just to meet their debt repayments. http://www.gmb.org.uk/Templates/Internal.asp?NodeID=98392
2. Responding to the report, Mark Hastings of the BBPA said: “the tie is unrelated to the problem of pub closures.” He claimed that the “driving force” behind closures was the burden of continuing tax hikes and “excessive regulation”. http://www.thepublican.com/story.asp?sectioncode=7&storycode=63324&c=3