Thursday, July 09, 2009

Pub trade split on new trade body

Everyone knows very well there is no such thing as pubcos doing anything without strings being attached. Even the suggestion that an independent representative body could exist while having core funding from pubcos and actually be INDEPENDENT is naive in the extreme. For decades the tobacco industry vociferously funded 'independent' research into the effects of smoking. That kept the hounds at bay for thirty or more years. It was only after forensic dissection of what had been held back from research findings that the notion of 'independence' was torn apart and legislators properly got their teeth into the industry.

Ted and Giles are direct competitors and they are in no way naive men. When they align with each other it is not for sentimental reasons or coincidence, it's for the benefit of their businesses' mutual survival. Their survival does not revolve around seeing lessees have a fair business deal; it revolves around maintaining the status quo. They cannot in any way defer from the view that a credible independent body is needed to represent the interests of lessees. So what route is left to them other than to suggest that they should fund such a body? If the pubcos aren;t involved in funding will be no chance of pubcos coming off lightly.

At the very least, IF pubcos are involved with such funding, the 'independent' body will be in an invidious position where their long term interests are aligned with pubcos' because the income for the 'independent' body will dry up if their actions lead to pubcos' having reduced profits or failing.

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