Friday, May 22, 2009

Pubcos accused of providing misleading evidence to MPs

@ dennis ingate 17 May, 2009, 01:29

Dennis you're right to show caution because few things happen over night but the importance of the BEC inquiry cannot be underestimated as it really marks a watershed in the history of the pub trade. The 2004 inquiry clearly exposed pubcos' behaviour as seriously wanting in many important areas of their activities. The 2008 inquiry was first an reflection on the findings of 2004 and looking at the industry now to see whether any of the 04 recommendations had been put into place. The pubcos, although griping that an inquiry would be a distraction in difficult trading circumstances, unanimously 'welcomed' the 2008 inquiry as their final opportunity to prove once and for all just how far they have moved on in four years and how much support and generosity they shower on their licensees - which makes the pubcos such power houses of success and reliable returns to shareholders.

What the 2008 inquiry clearly exposed is exactly HOW LITTLE the pubcos have done - in fact it exposed the reality which is they have done NOTHING substantial except to wilfully ignore all the 2004 recommendations and, if anything apply themselves more rigorously to the pursuit of extracting every last drop of profit from the shop floor - the beer pump - and transferred it to CEO trousers, shareholders, bond holders and in servicing mind blowing levels of debt.

Beyond an excoriating indictment of pubco CEO and there companies behaviour, the report exposed complicity in this situation between pubco behaviour and industry related bodies such as RICS, Brulines, BII and others.

What you should be doing now, if you have not already, is seeing your MP and telling them how it is between you and your pubco. They will be fascinated. Please go to and see what can be done there.

No comments:

Post a Comment