Sunday, 2 November 2008

COMMUNITY PUB INQUIRY

I am halfway through reading the report on the Community Pub produced as a result of the All Party Parliamentary Beer Group Inquiry. It makes interesting, if difficult reading.

It can be found here. I think it is excellent and should help the industry - but don't let the government ignore it. It's been published for a couple of weeks and despite having talked to somebody who is very closely involved and reading the trade press as much as time allows, it only came to my attention today. (Probably partly my fault - but I still should have seen it in the trade press or on a blog or something - wake up guys!!)

It discusses the many and varied problems facing the smaller pub business. It includes of course the two major ones often cited:

1. Smoking Ban
2. Cheap supermarket drink

It also lists a whole range of other factors including:

1. Cheap, high quality home entertainment (reading blogs for example!)
2. Rafts and rafts of legislation (boy do I know it)
3. Beer duty increase(27%) is greater than spirits(3%) and wine(16%) (spirits surely are more of an alcohol problem)
4. Overzealous legislation enforcers - the council normally
5. Unfair rating system
6. Rising labour costs (minimum wage and employment rights effects)

And many more.

There will be more on this here - but if you think cheap supermarket booze and the smoking ban are the main issues, read the report and think again.

I believe if the consumer focuses only on the two big issues, because they are the ones that the consumer cares about, pubs will still close at an alarming rate because we miss the point.

3 comments:

Jeffrey said...

I don't see why the minimum wage is relevant - would you seriously pay bar staff (or anyone for that matter) less than £5.73 (or £4.77 for 18-21 year olds) ph for their time?

The Woolpack Inn said...

Jeffrey,

I agree, bar staff are worth more than £5.73 especially if you are to trust them with your ale.

I believe that many jobs in hospitality are under valued and the minimum wage has raised the level of pay in the sector.

I don't want to engage in any political arguments about the issue. There are advantages of the minimum wage it's true. But it does put up wage bills. Staff require differentials in pay and as the minimum wage has increased by more than inflation this has upward effect on the wages bill.

Moreover, many suppliers will also have increasing wage bills above that of inflation thereby increasing the cost of supplied product.

So, the minimum wage is fine so long as you accept increasing beer prices.

The Woolpack Inn said...

..anyway Jeff, 07:52???

I wouldn't be up this early if it wasn't for damn residents needing breakfast!!