PRESSURE is mounting on the Scottish Government to ease conditions for tenanted pubs in Scotland amid fears that publicans are being disadvantaged to their counterparts in England and Wales.
MSPs will debate the beer tie, which restricts tenants to buying beer from their pub company landlords, in the Scottish Parliament on April 30.
The debate will bring into focus the pressures faced by Scotland's pubco tenants, estimated to number about 1000, who are 62 per cent more likely to go out of business than free of tie pubs.
Industry figures suggest tenanted pubs typically pay as much as 50 per cent more for draught beer than free trade pubs.
And while a free trade publican can expect to take up to 80 per cent of the available margin, research suggests that falls to 50 per cent for tied pubs. With pubcos taking about 40 per cent of the margin, it is claimed a margin of £40m is being lost to the Scottish economy.
Research by market analyst CGA has also found that while free trade revenues for draught beer have grown by 6 per cent in the last year, it has fallen by four per cent in leased and tenanted outlets.
The campaign calling for change is being led by a host of brewers in Scotland, ranging from Tennent Caledonian to Alloa-based Williams Bros, which argue that publicans will save significant sums and be free to offer drinkers a much broader choice if the tie is lifted. Brewers argue that it will offer them greater access to a broader customer base.
Scott Williams, managing director of Williams Bros, said scrapping the beer tie would allow his firm to build up a significantly broader customer base.
Mr Williams said: "There's an awful lot of pubs that we could go to who would then be able to buy directly from you, which currently are not able to.
"They are doing it for England and Wales and for good reason - they want to be able to free up competition. For the most part, it can only be good for small breweries.
"The only downside I guess would [that] some of the independent pubs that have that flexibility at the moment might not be so attractive, but I think that will all settle out.
"The ones that are run by groups won't give the publican completely free rein, so there will still be a hierarchy of where you can go for everything exciting and new. But the availability of good, craft, regional and local beers can only be improved by opening up the possibility of selling into more local outlets."
The Scottish Parliament debate after a motion lodged by Glasgow MSP Paul Martin gained cross-party support.
The motion calls for a statutory code of practice to be introduced in Scotland to bring more balance to the relationship between tenants and pub companies.
Mr Martin stepped in after MPs at Westminster voted to end the beer tie, and allow tenants to seek open market rent reviews, under an amendment to the Small Business, Enterprise and Employment Bill in England November.
The campaign is also supported by licensees' group the Scottish Licensed Trade Association, whose chief executive Paul Waterson said: "Campaigners in England and Wales are rightly celebrating - the passing of the Bill is a big, progressive step forward for the licensed trade down south.
"It will see a freer, fairer industry emerge as a result of the legislation and we're glad that their hard work has paid off.
"In Scotland though, we're still lagging behind. An MSP debate on the issue is currently scheduled for Holyrood at the end of April and, at this, we'd like to see some definitive actions agreed. Our message remains clear - we need parity with the rest of the UK, and we need it fast."
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