§ Mr. Masonasked the Secretary of State for Trade and Industry (1) if he will outline the full implications of the new liquor laws arising out of the European Economic Community ruling giving rights to public house tenants to buy wines and spirits in spite of their tie to their brewers; and if he will make a statement;
(2) whether, and over what time scale, the beer tie between public house tenants and managers will be affected by the new European Economic Community ruling on liquor law changes in the United Kingdom; and if he will make a statement;
(3) if he will assess how the European Economic Community ruling on sales of wines and spirits in United Kingdom public houses will affect the relationships and contracts between tenants and managers and their respective brewers; and if he will make a statement.
§ Mr. Alexander FletcherOn 1 July 1983 the European Commission brought into force a "block exemption" regulation under the competition rules of the treaty of Rome relating to exclusive purchasing agreements. This permits tied house agreements between brewers and publicans without the need for individual notification, provided they meet certain conditions.
A tie for beers is permitted, although publicans must have some degree of freedom to purchase certain defined types of special beers outside the tie. Wines and spirits may also be tied but where the publican is a tenant he must be permitted to obtain particular items elsewhere if they are available on more favourable terms than the brewer is prepared to grant; a tenant must also be able to buy wines and spirits of other brands than those supplied by the brewer.
162WThe competition rules do not apply to arrangements between public house managers and the brewery which employs them.
Agreements entered into after 1 January 1984 cannot benefit from the block exemption unless they meet its conditions. Agreements made before that date continue to benefit from the previous block exemption until 31 December 1988 when they v/ill have to be modified to comply with the new conditions if they are to continue to be exempt.
If an agreement is subject to the competition rules but does not meet the conditions of the block exemption it may still be notified to the Commission for consideration for individual exemption from the treaty's prohibition on restrictive agreements.