§ Mr. Masonasked the Minister of Trade (1) what stage the European Community proposal to change the brewers' tied house system has now reached; what is Her Majesty's Government's policy on the Commission's proposal; and whether it will be subject to approval by Parliament;
(2) what assessment has been made of the effect on trade of the European Community proposal to break the tie between brewers and tenants in respect of wines and spirits; what representations he has received from the trade; and if he will make a statement;
(3) whether the European Community proposal to change the brewers' tied house system is confined to wines and spirits; whether beer is likely to be affected; and if he will make a statement.
§ Dr. VaughanThe present regulation has been extended to 30 June 1983. The European Commission has recently sent member states a further draft of the new regulation it proposes should then be introduced. The Government are consulting on these proposals and will take their views into account when deciding what representations to make to the Commission. In the past I have received representations on behalf of brewers, licencees and the manufacturers and suppliers of other drinks. I hope that the eventual regulation, which will not be subject to Parliamentary approval, will take account of these interests, as well as those of the customer.
§ Mr. Gryllsasked the Minister for Trade what is the policy of Her Majesty's Government towards the European Commission's proposed Community regulation to change the brewer's tied house system.
§ Dr. VaughanThe European Commission's proposed regulation to take effect from 30 June 1983 would allow 271W a brewer and publican to make an exclusive purchase agreement either for a complete range of drinks for a period of five years or for draught and bottled beer only for a period of 10 years. The first alternative would not, however, be available where the brewer had let the premises to the publican under a tenancy agreement and the second would be subject to a condition that the publican was free to obtain "special beers" in bottles or cans from other suppliers. Thus in the case of tenants the wine and spirits tie would be broken but the beer tie would be able to continue, subject to the exception for special beers.
The Government are consulting on these proposals and will take their views into account when deciding what representations to make to the Commission. In the past I have received representations on behalf of brewers, licensees and the manufacturers and suppliers of other drinks. I hope that the eventual regulation, which will not be subject to parliamentary approval, will take account of these interests, as well as those of the customer.
I understand that the Commission has based its assessment of the effect on trade on enquiries into the state of competition in the industry between 1969 and 1979, as well as on rulings of the European Court of Justice, which held that networks of brewery agreements could have an effect on trade among member states.