OFT slammed for 'dereliction of duty'
CAMRA and a leading MP have condemned the Office of Fair Trading (OFT) for not referring the Campaign's super- complaint regarding the pub tie to the Competition Commission for urgent investigation.
Leeds MP Greg Mulhol-land said the OFT's decision to ignore the super-complaint from CAMRA is "deeply flawed and represents a dereliction of duty" by this public body.
CAMRA is demanding the government take immediate action to refer unfair tie arrangements in the pub sector to the Competition Commission for urgent investigation.
CAMRA's chief executive Mike Benner said: "The OFT decision fails to address the legitimate concerns raised both in our super-complaint and the damming Business and Enterprise Committee report, and does nothing to address the imbalance in the landlord/lessee partnership which is leading to higher prices, less choice and weak investment in pubs.
"It is difficult to see how the OFT can argue that competition is working well in the pubs sector when demand is falling, yet prices are rising. Urgent action is now required by government to stem the flow of pub closures, build a sustainable future and ensure that consumers get a fair share of the benefit from tied agreements as demanded by competition law."
CAMRA's head of policy and public affairs Jonathan Mail said he has written to competition minister Kevin Brennan seeking a meeting.
Jonathan said the OFT report lacked analysis and had "failed to take reasonable steps to understand the pub market through listening to the experiences of individual licensees".
He said the OFT report acknowledges that, on average tied pubs would be between £19,000 and £21,000 better off a year if they were able to buy beer at market prices, but concludes there is no significant effect on the beer drinker. This is a "clear example of insufficient and inadequate reasoning", he said.
Go to www.camra.org.uk to download a copy of CAMRA's super complaint.
by Tim Hampson