A number of Scottish organisations and brewers have formed a coalition to fight against tied pubs and pubcos and the matter was discussed in parliament yesterday. Following this, the Scottish Government has announced that it will undertake a study on tied pub tenancies following a debate in parliament yesterday.The study will determine whether tied wet pubs are at an unfair disadvantage compared to other pub tenanted models. After the debate in parliament, the Minister for Business, Energy and Tourism, Fergus Ewing said, “For the last two years the Scottish Government has sought evidence that demonstrates that the ‘tied wet’ sector is much worse off than other forms of contractual arrangements. During this time we have met with representatives from across the industry.”
A tied wet pub is a public house that is contractually required to buy at least some of their beer for a certain pub company or brewery. This is often at a steeper price compared to the market rate. Mr Ewing commented, “This is a complex issue, which needs to be carefully examined to determine whether there is robust evidence to any support change. Evidence provided so far has failed to look at the comparative benefits and any negative impact of the ‘tied’ contract as a package.” Paul Waterson from the Scottish Licensed Trade Association was pleased with the outcome of the meeting, “This is a step in the right direction. The very many reasons why tied pubs are bad for Scotland’s industry and economy are being listened to and so we are encouraged by the decision to analyse the evidence, which is already overwhelmingly strong. One note of caution however is the pace at which we see discussion and change take place. Scotland’s publicans will suffer if England and Wales move forward, whilst we lag behind.”
Ewing also added that for the study to be successful, it will require co-operation from everyone involved in the pub sector from tenants to Pub Co’s. Mr Ewing also added that the research is key before taking any action, “We will then be in a better position to consider whether legislation should be introduced and who it should apply to – which may be different to that identified in England and Wales where the make-up of the sector is very different to Scotland.”