An MSP is calling for a ban on large pub companies from forcing tenants into buying beer from them.
At the moment, PubCos can insist landlords only buy supplies from them, rather than on the open market, which can drive up alcohol and rent prices. The practice is already banned in England and Wales.
Paul Martin, MSP for Glasgow Provan, has accused large pub companies of behaving like exploitative payday lenders by forcing tenants into costly beer ties. He said:
"For too long, tied pub tenants have been squeezed by PubCos behaving like exploitative payday lenders. It’s time to bring an end to the unfair practices and lack of transparency that threaten to irreparably damage the pub industry in Scotland. Last year, MPs took heed of the overwhelming body of evidence indicating high levels of exploitation within the pub sector and passed legislation in England and Wales to ensure that pub tenants get a fair deal.
"I believe Scotland urgently needs a statutory code of conduct and an independent adjudicator to govern the relationship between PubCos and their tenants. I also want to see a market rent only option to help tenants break away from the tied model, which is widely accepted to disadvantage publicans."
The Campaign for Real Ale (CAMRA), who campaign on behalf of pubs across the UK, is also calling for pubco reform. It found that 99% of rent-tied pub tenants in Scotland would back the move. Their Scottish members will be lobbying MSPs for support.
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