21 October 2008 Pubs in decline

21 October 2008 9.00 BST

Pubs failing at an alarming rate says MP

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Nick Harvey, MP for North Devonshire and Deputy Chairman of the All-Party Beer Group (APBG), has pointed to deep discounting on alcohol in off licences as a cause for the decline of British pubs. Pubs are closing at a rate of five a day, compared to a rate of two a week in 2005.

The MP was speaking in Parliament on Tuesday following the proposal of a new Early Day Motion that aims to curb the disparity in alcohol prices between the on and off trade.

The MP said:

"As Deputy Chairman of the All-Party Beer Group I am acutely aware that these are difficult times for the beer and pub trade. Most recently I and my colleagues have been lobbying the Government, with Early Day Motion 2159, protesting at the detrimental effect of supermarket alcohol prices.

"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. Barnstaple is no exception to this trend with the recent closure of several longstanding establishments in Boutport Street and elsewhere.

"Tax hikes combined with the ban on smoking in public places and supermarkets selling beer as a significant lost leader - to the extent that 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 along side, providing consumer freedom of choice. However, economically off-trade, thanks to the supermarkets, is now clea
rly a serious challenge with an annual turn over of about £13bn almost matching pub sales.

"I and the APBG will keep pressing the Treasury, Department of Communities and Local Government and Health regarding alcohol duty being a blunt instrument to deal with binge-drinking (the real target being supermarkets selling alcohol below cost price), the positive value of pubs to our communities and the need for regulation and licensing not to be so burdensome as to push yet more pubs out of business.

"The Government must address these issues before further harm is done to the battered pub trade."

From: Night Online

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