PUB TRADE FAILING AT ALARMING RATE SAYS MP
October 17, 2008 3:48 PM
Nick Harvey, MP for North Devon, says: "As Vice-Chairman of the All-Party Beer Group (APBG) I am acutely aware that these are difficult times for the beer and pub trade. Most recently I and my colleagues have been lobbying the Government, with Early Day Motion 2159, protesting at the detrimental effect of supermarket alcohol prices.
'Pubs are closing at an alarming rate of 5 a day, compared with 3 a day last year, 4 a week the year before and 2 a week the year before that. Barnstaple is no exception to this trend with the recent closure of several longstanding establishments in Boutport Street and elsewhere.
'Tax hikes combined with the ban on smoking in public places and supermarkets selling beer as a significant lost leader - to the extent that is cheaper than bottled water, have all had a negative impact on a struggling industry.
'While pubs have served a historic role, off-trade has always existed along side, providing consumer freedom of choice. However, economically off-trade, thanks to the supermarkets, is now clearly a serious challenge with an annual turn over of about £13bn almost matching pub sales.
'I and the APBG will keep pressing the Treasury, Department of Communities and Local Government and Health regarding alcohol duty being a blunt instrument to deal with binge-drinking (the real target being supermarkets selling alcohol below cost price), the positive value of pubs to our communities and the need for regulation and licensing not to be so burdensome as to push yet more pubs out of business.
'The Government must address these issues before further harm is done to the battered pub trade.'
Notes for Editors:
The pub trade's contribution for the economy is significant; there are 57,000 pubs and bars in the UK contributing £18 billion to the economy, which equates to over 2% of GDP, and employs around 650,000 people in full and part-time jobs.
The Business and Enterprise Committee is currently holding a new enquiry into the role of Pub Companies (the last was conducted in 2004), with submissions closing at the end of September.
The Pubcos have failed to adopt previous recommendations that rents should be sustainable, tied tenants should not be worse off and that the upward only rent reviews and gaming machine tie must cease.
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