Local residents have recently contacted John Mann regarding their concerns about the closure of the Blue Bell Inn in Gringley-on-the Hill.
The loss of this pub coincided with the launch of the campaign for A Fair Pint. Around 27 pubs are closing in Britain each week. That's approximately four pubs a day.
Two large pub companies, Enterprise Inns and Punch Taverns own in excess of 25 percent of all pubs in the UK. These are not brewers but are the middleman between brewer and the pub. The conditions of their tied agreements include the publican being required to buy all their beer at inflated prices and some other supplies from the pub companies, they must pay rent to the pub companies and this increases as profits go up but do not go down when profits fall and they receive a percentage income from the slot machines plus they generally pay a higher rent for these machines.
This is causing huge numbers of landlords being forced out of the market. Well-run pubs are closing in unprecedented numbers. In 2006-2007 bankruptcies amongst landlords increased seven-fold.
People are asking how has this happened? The Beer Orders Act, passed in 1989 was intended to increase competition in brewing, wholesaling and retailing by ensuring that no brewer can run more than 2,000 pubs. This legislation saw the creation of stand-alone pub companies and the brewers had no choice but to sell their surplus pubs to these organisations. The pub companies are exempt from the Beer Order legislation as they do not have to brew the beer themselves.
The pub companies (known as PubCo's) are essentially property companies, whose properties just happen to sell drinks and they are more interested in the property markets and land prices.
The Fair Pint Campaign is calling for the tie to be removed from all pubs with the exception of those tied to brewers as this will enable the landlord to compete in a fair market.
They are calling on government action to investigate how the PubCo's operate and to take action to stop the unfair profiting out of unfair rental agreements and ties on slot machines.
John Mann commented: "whilst I appreciate that the pub trade has been affected by the smoking ban and the impact of cheap booze from supermarkets I have been shocked to learn that many landlords are being driven out by these greedy profiteering companies that are more interested in making a quick buck from land sales and development. Pub’s such as the Blue Bell Inn play a key role in holding a community together and it will be sad day for all if it is sold off to become a private home. I fully support the Fair Pint Campaign and I will be pressing the Government on this issue". |