Punch Taverns PLC Share News (PUB)

Pub group Punch Taverns has moved quickly to reject calls by MPs for a referral of the pub tied house system expressing disappointment with key findings of the Business and Enterprise Committee report.The parliamentary report yesterday called for reform of the business model adopted by the giant pubcos, such as Punch and Enterprise Inns, and wanted the Competition Commission to look into the tied arrangement that governs over half Britain's pubs.In its statement today Punch said numerous inquiries had been carried out into the industry already, with the Office of Fair Trading suggesting that there was no basis for further investigation of the tie in its 2004 investigation. "The important protection the tie has provided to regional brewers, pub companies, retailers and consumers during a period of significant consolidation among multi-national brewers has also been widely acknowledged during this time," it said."If the Government does decide to refer this matter to the competition authorities, we are confident that the outcome will reconfirm the competitive nature of the pub sector once and for all," it added."The tied pub model provides a fair and equitable approach to sharing risk between ourselves and our licensees, represents a low cost opportunity for entrepreneurs, and has a rightful place in the market."