§ 27. Mr. CrowtherTo ask the Secretary of State for Trade and Industry what representations he has received about the effect on public house rents of the implementation of the Supply of Beer (Tied Estate) Order 1989.
§ Mr. RedwoodI have received a large number of representations from pub tenants' associations, individual tenants and Members of Parliament about the effect on public house rents of the Supply of Beer (Tied Estate) Order and other measures introduced by the Government in response to the Monopolies and Mergers Commission report on the supply of beer. I recognise that some of the new types of leases being offered by the national brewers may involve higher rents; however, they also offer much greater security of tenure and can provide higher financial rewards as they offer tenants more freedom of choice. The level of rent for individual premises is a matter for commercial negotiation between the brewers and their tenants.
§ Mr. WigleyTo ask the Secretary of State for Trade and Industry when he last met representatives from the National Licensed Victuallers Association to discuss the level of concentration in the brewing industry and non-beer ties between the licensee and the breweries.
§ Mr. RedwoodI am in regular contact with the National Licensed Victuallers Association. My last meeting with the association was on 9 January this year, when we discussed a range of issues relating to the brewing industry.
§ Mr. WigleyTo ask the Secretary of State for Trade and Industry if he will make it his policy to ensure that 221W breweries cannot unilaterally extend the scope of their ties with licensees to cover brands not covered at the date when agreements took effect.
§ Mr. RedwoodConcern about this issue should be made known to the Director General of Fair Trading, who has been given responsibility for monitoring the effectiveness of the measures that the Government have introduced following the Monopolies and Mergers Commission's report on the supply of beer. The director general will also be able to take such concerns into account when he carries out his review of the industry in late 1993 to early 1994.