Brewing Industry

Oral Answers to Questions — Trade and Industry – in the House of Commons at 12:00 am on 29 October 1998.

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Photo of James Gray James Gray Conservative, North Wiltshire 12:00, 29 October 1998

What assessment he has made of the impact of the provisions of the Competition Bill [Lords] on employment in the brewing industry. [55063]

Photo of Kim Howells Kim Howells Parliamentary Under-Secretary, Department of Trade and Industry

We have a fine brewing industry which understands the need for all sectors to be capable of taking on international competition. I should expect the Bill's provision of a more effective regime to help in that respect by deterring and tackling anti-competitive agreements and conduct in the brewing industry as in every other. It will lead to a more competitive market, which will provide the basis for greater employment opportunities.

Photo of James Gray James Gray Conservative, North Wiltshire

I think that I am grateful to the Minister for that reply, although I am concerned that he seems to be reconfirming that agreements between breweries and tied houses will be within the provisions of the Bill—something that was not clear before. I am particularly concerned about the agreements between small country breweries, such as Wadworth and Arkell's in my Constituency, and the country pubs. Will those agreements be within the terms of the Bill or not?

Photo of Kim Howells Kim Howells Parliamentary Under-Secretary, Department of Trade and Industry

Yes, they will be. On supply agreements, we have received notice that the European Commission intends to take a favourable view of a number of standard United Kingdom pub leases. Formal exemption decisions will be expected in the next few months.

Photo of John Smith John Smith Labour, Vale of Glamorgan

Will my hon. Friend join me in welcoming the growth in small and independent breweries throughout Britain, which will benefit not only from the proposals in the Competition Bill but from the legislation due on 1 November on late payment to companies, a crucial factor affecting the success of small businesses? It will help to create not only a better environment for the future but a business culture and climate in which late payment is unacceptable.

Photo of Kim Howells Kim Howells Parliamentary Under-Secretary, Department of Trade and Industry

My hon. Friend makes an important point. We are the first Government to tackle successfully the question of late payment. We have raised it as an issue and acted upon it. Given the Conservative party's attitude to the brewing industry, the question is a bit rich coming from them. Just last July, Conservative Members talked out a private Member's Bill that would have allowed every beer drinker in Britain to have a proper measure of beer. How many more jobs in the brewing industry would that have created? In everything the Conservative party touches, it short-changes consumers and workers. We put consumers and workers at the centre of everything that we do.

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