§ Mr. SternTo ask the President of the Board of Trade to what extent tenancies which previously provided for a renewal option after five years are automatically varied by the Beer Orders.
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§ Mr. Neil HamiltonThe Beer Orders do not automatically vary existing tenancy agreements. Certain changes are required when pubs are leased by national brewers free of ties to ensure a proper arms-length relationship between tenants and their landlords.
§ Mr. SternTo ask the President of the Board of Trade if he will re-refer to the Monopolies and Mergers Commission the offer of only a 20-year full-repairs lease to all existing Courage tenants, irrespective of the circumstances or terms of the original lease.
§ Mr. Neil HamiltonNo. The rights of tenants under existing agreements and the terms of new leases offered to them are matters for the tenants concerned and their landlords; any dispute must ultimately be resolved by the courts.
§ Mr. Neil HamiltonThe Beer Orders, made in 1989, come fully into force from 1 November 1992. The Director General of Fair Trading is due to review them next year when their effectiveness can be assessed.