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Call to break beer tie on ‘taxpayer-owned’ pubs

21 Jul 2009


Publicans are calling for the liberation of the beer tie for 1000 pubs that are effectively owned by the taxpayer.

The Fair Pint Campaign, a lobby group of publicans, says the Government should intervene in the pub estate owned by the Royal Bank of Scotland, which is, after the banking crisis, effectively under state ownership.

The estate, says the lobby group, is suffering from the “tie”, which means they are locked in to paying higher prices for their beer and food from RBS.

In turn, the tenants cannot make the money they need to afford their tenancies, and record numbers are said to be handing back the keys.

The tenancies of RBS's 1000 pubs, which include film director Guy Ritchie's Punch Bowl in Mayfair, are managed for the bank by Scottish & Newcastle Pub Enterprises.

Fair Pint is being backed in its campaign by the Federation of Small Business.

Steve Corbett, a tied tenant and Fair Pint member said: “The Government has promised to back small businesses through the current downturn.

“It is therefore entirely inappropriate for a bank owned by taxpayers to be causing such a high level of small business failures.

“The right people to own pubs are publicans, and here is a chance to make a real difference and to save jobs.

Treasury minister Sarah McCarthy-Fry has previously said the Government has no say over the management of RBS despite the fact it is the bank's major shareholder.

Reader views (1)

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I would much rather own a share of a few pubs than a few banks. Anybody fancy a pint?

- Nobby Clark, Perth, the Scottish one, 25/08/2009 16:49
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