CAMRA riled by OFT ruling

The Campaign for Real Ale (CAMRA) has vowed to maintain its pursuit of reform of the beer tie.

The Office of Fair Trading (OFT) dealt a devastating blow to CAMRA’s campaign when it announced that it is to take no further action regarding the influence of large pub companies on the on-trade beer business – a decision CAMRA has described as “extraordinary”.

Mike Benner, CAMRA chief executive, accused the OFT of squandering an opportunity to improve competition and benefit pub customers.

"The decision is based on a blinkered and selective consideration of the evidence,” he said. “A balanced and fair relationship between tied pub landlords and the large pub companies is crucial to ensuring the pub market works well for consumers.

“The inaction of the OFT is all the more remarkable given that the Commons Business Select Committee and the government recognise that a competition problem exists and are working to find a fair solution.”

Despite CAMRA’s commitment to the cause, the consumer group has been urged to concentrate on its championing of cask ale by the British Beer and Pub Association (BBPA).

Brigid Simmonds, chief executive of the British Beer & Pub Association, said: "We are pleased with the reconfirmation of the OFT’s decision.

"We would hope this would help draw a line under many issues and enable the industry to move forward. There is much work to be done. A key focus for us is on ensuring the process of code implementation and tie reform remains on track and keeping government and all MPs regularly informed of the positive progress being made.

"Just as importantly, there are a number of critical priorities for the industry to focus on in its engagement with government over the next few months.

"The proposed changes to the Licensing Act, the review of the alcohol tax system and the next phase of the government’s alcohol policy agenda all present very real threats and opportunities. We need to ensure our industry comes together and is well mobilised in taking its case to government, if we are to try and secure the best possible outcomes on these vital issues.”

The OFT ruling rubber-stamped an earlier OFT judgment made last October in response to a super-complaint issued by CAMRA last year. The OFT re-opened its investigation after CAMRA made moves to appeal its decision

Ann Pope, OFT senior director of goods, said: “’The OFT appreciates how important local pubs are to many consumers and local communities.

"CAMRA’s super-complaint has provided a timely opportunity to examine the pub sector, as the beer tie model has attracted considerable attention recently. After carrying out detailed analysis, we have found that the sector is competitive overall and that there is no need for the OFT to take further action at the moment.”

Ben McFarland, 29.10.2010