HC Deb 12 July 1993 vol 228 cc345-6W
Mr. Wareing

To ask the President of the Board of Trade, pursuant to his answer of 5 July,Official Report, column 35, how many of the representations from Inntrepreneur Estates Ltd. lessees expressed concern over rent levels; how many referred to the effect of a beer tie on rent levels; and how many of the complainants have obtained redress of their grievances as a result of his intervention.

Mr. Neil Hamilton

The majority of representations received recently by my Department from Inntrepreneur Estates Ltd. lessees expressed concern over rent levels. Levels of rent are essentially a commercial matter between company and lessee. We understand from the company that rent levels negotiated by the company take account of the individual circumstances of each public house, including whether or not it is tied. The Government asked all the major brewers in 1991 to introduce procedures associated with long-term leases to be determined by independent arbitration or through independent assess-ment by a professional expert where they could not be agreed with the tenants; these are available under the IEL lease. It would not be appropriate for the Government to intervene in individual cases.

Mr. Wareing

To ask the President of the Board of Trade, pursuant to his answer of 5 July,Official Report, column 35, what were the specific issues raised with Mr. R. G. Williams, chairman and managing director of Grand Metropolitan Estates Ltd. in respect of Inntrepreneur leases; what was his response; what reduction in rents resulted from the removal of beer ties; and if he will make a statement.

Mr. Neil Hamilton

The purpose of the discussion was to assist officials in advising me on how to respond to points made in representations to the Department. In particular the Department needed to be clear whether the representations made to us revealed any evidence that the company was not complying with the Beer Orders or undertakings given to the Director General of Fair Trading following the MMC report on the Elders IXL Ltd./Grand Metropolitan plc merger; and further, whether the company was abiding by assurances given to Ministers in 1991 about treatment of tenants. On the level of rents, the release of a pub from tie affects its market rent because it allows the tenant/lessee freedom of choice in sourcing his beer and in obtaining discounts.

Mr. Wareing

To ask the President of the Board of Trade, pursuant to his answer of 5 July,Official Report, column 36, what assurances have been obtained from Inntrepreneur Estates Ltd. in respect of its treatment of their lessees since 1991; and if he will make a statement.

Mr. Neil Hamilton

In meetings with the company, my officials have been assured that the company continues to abide by the assurances given to Ministers in 1991 about the treatment of tenants. In addition, I understand that the company has recently introduced more flexibility into leasing arrangements; for example, the incorporation, where appropriate, of a three-year break clause, exercisable by the lessee only, into the standard Inntrepreneur lease.