The Campaign for Real Ale is turning to the courts to try to get action on what it calls anti-competitive practices by large pub companies.
Camra says pubcos – principally large Midlands firms like Punch Taverns and Enterprise Inns – are imposing unfair charges on their tenants at a time when many are struggling to survive.
The campaigning organisation made a ‘super complaint’ to the Office of Fair Trading this year but it was rejected. Camra is planning to appeal and is calling on supporters to contribute to the fighting fund.
The organisation said high rents and “tied” beer prices – where pub companies compel tenants to buy drinks from them – would force good landlords out of business and could wipe out the sector. More than half of UK pubs operate under a beer tie, Camra said.
Camra is the UK’s largest single-issue consumer group, giving it the power to make a “super-complaint”. It first approached the OFT in July this year. Under the Enterprise Act 2002, Camra is entitled to appeal the OFT’s decision to the Competition Appeals Tribunal.
Camra chief executive Mike Benner said: “Camra has taken the decision to appeal due to the inability of the OFT to deal with 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. We now urge consumers and associated trade bodies to get behind our ‘Consumers v OFT Pub Market Ruling’ campaign fund.”
