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Farron Welcomes Inquiry into Pub Companies

July 9, 2008 3:00 PM

Local MP Tim Farron has welcomed an inquiry by the Business and EnterpriseSelect Committee into the impact of Pubcos on the brewing and pub industry.

Mr Farron, had urged the committee to launch an investigation into the pubcos after mounting evidence from local landlords in South Lakeland that they were being exploited by being charged excessive rents and excessive prices for beer and other products.

The Select Committee will review the power of the pubcos and, most importantly, the 'tie' which allows pubcos to demand exorbitant prices and rents.

Mr Farron had raised concerns that small pub owners were being priced out of business with many local pubs closing down altogether as a result of the unfair practices of giant pub companies.

Commenting Mr Farron said:

"This is encouraging news for local pubs. This inquiry could provide pub tenants with a fair deal that w ould save the traditional British pub from disappearing".

"I'm delighted that after so much delay the pubcos might finally be held accountable".

"This inquiry will give heart to the many licensees who feel marginalised and bullied by the pubcos".