Rural pubs 'are being pushed out of business'

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Wednesday, October 22, 2008
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This is Cornwall

MINISTERS are coming under increasing pressure to help rural pubs survive the economic downturn.

The Treasury, the Department for Communities and Local Government and the Department of Health are all being urged to look again at the help they can give to the pubs, which are often at the heart of village life.

Nick Harvey, deputy chairman of the All-Party Beer Group, said he was pressing the Government to recognise the "positive value" of pubs to communities and the need for red tape to be cut so more were not "pushed out of business".

The North Devon MP warned: "Pubs are closing at an alarming rate of five a day, compared with three a day last year, four a week the year before and two a week the year before that.

"Tax hikes, combined with the ban on smoking in public places and supermarkets selling beer as a significant lost leader – to the extent that it 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 alongside, providing consumer freedom of choice. However, economically, off-trade – thanks to the supermarkets – is now clearly a serious challenge with an annual turnover of about £13 billion almost matching pub sales. The Government must address these issues before further harm is done to the battered pub trade."

More than 50 MPs have backed a Commons motion criticising supermarkets for selling alcohol cheaper than bottled water.

Among them are South East Cornwall MP Colin Breed, Torbay MP Adrian Sanders and Mr Harvey.

They were concerned that Asda supermarkets were selling Skol lager at 90p for four 440ml cans, the equivalent of 5.11p per 100ml compared with Evian still water at 5.55p per 100ml.

The MPs said they were "appalled" by the ultra-cheap booze, and questioned whether "this is an example of loss leading sales".

They also warned of the "negative effect" this had on the brewing and pub industries, with 36 pub closures a week.

They called on the Government to "look at the pricing policy of beers in supermarkets as opposed to public houses".

Earlier this month, it emerged that village pubs could receive public money if they could prove they were part of the fabric of village life.

Local government minister John Healey said landlords could apply for grants in recognition of their role as community meeting places.

However, the British Beer and Pub Association said such moves were "a drop in the ocean" and action was needed to cut alcohol duty and reduce regulations.

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  • Profile image for This is Cornwall

    by Derek Smith, Totnes

    Wednesday, October 22 2008, 1:13PM

    “Pubs are obviously a central part of village life.
    Go to any village with no pub and you'll find no village just a collection of houses (half of which tend to be holiday homes).
    The pub is the heart of any village. All these closures are threatening our whole sense of 'Britishness'. It should not be allowed to happen.
    Stop supermarkets selling alcohol. Make it the preserve of Off Licences and the good old British Pub.”

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