The Supply of Beer (Tied Estate) Order 1989

Articles 2(1) and (2), 3(1) and 4

SCHEDULE GOVERNING LARGE BREWERS AND LARGE BREWERY GROUPS

1.  The provisions of this Schedule are satisfied with respect to a brewer only if each of the licensed premises—

(a) on which he carries on business in the supply of beer by retail, or

(b) which he permits another person not a member of the same group to occupy under an agreement precluding or restricting relevant purchases, is a notified tied house and if the total number of the notified tied houses falling within subparagraph (a) or (b) above does not exceed the permitted maximum determined in accordance with paragraph 3 below.

2.  The provisions of this Schedule are satisfied with respect to a group only if each of the licensed premises—

(a) on which any member of the group carries on business in the supply of beer by retail, or

(b) which a member of the group permits another person not a member of the group to occupy under an agreement precluding or restricting relevant purchases, is a notified tied house and if the total number of the notified tied houses falling within subparagraph (a) or (b) above does not exceed the permitted maximum determined in accordance with paragraph 3 below.

3.—(1) In respect of each brewer and each group, the permitted maximum referred to in paragraphs 1 and 2 above is the sum of—

(a) two thousand, and

(b) subject to the following provisions of this paragraph, one half of the total number of licensed premises in excess of two thousand in which the brewer in question or one or more members of the group in question hold, or at any time on or after 10th July 1989 have held, interests.

(2) No licensed premises may be taken into account in determining the permitted maximum in respect of more than one brewer or group; and if, apart from this subparagraph, any licensed premises would fall to be taken into account in respect of more than one brewer or group—

(a) they shall be taken into account in respect of that one of those brewers or groups in respect of which they first fall to be taken into account (or would first have fallen to be taken into account during the period beginning on 10th July 1989 and ending immediately before the making of this Order if this Order had then been in force), and

(b) where subparagraph (a) above fails to determine the matter in a case in which one of the brewers in question, or a member of one of the groups in question, holds an interest in the premises which is superior to that held by another of the brewers in question or by a member of another of the groups in question, they shall be taken into account in respect of the holder of the first-mentioned interest or (as the case may be) the group of which the holder of that interest is a member, unless (in either case) that brewer or a member of that group, with the agreement of another of the brewers in question or of a member of another of the groups in question, gives notice to the Director General of Fair Trading that they should be taken into account in respect of that other brewer or group.

(3) No licensed premises may be taken into account in determining the permitted maximum in respect of a brewer or a group in any case in which the brewer does not hold, or (as the case may be) no member of the group holds, any interest in them for the time being if the brewer or a member of the group is party to an agreement in respect of the premises the carrying out of which is unlawful by virtue of article 7 above, or would be so unlawful but for article 8 above.

(4) No licensed premises which are not a notified tied house may be taken into account in determining the permitted maximum in respect of a brewer or a group if the brewer or (as the case may be) a member of the group is party to an agreement in respect of the premises the carrying out of which is not unlawful by virtue of article 7 above but would be so unlawful but for article 8 above.

(5) Premises which are not licensed premises shall be deemed to be licensed premises for the purpose of taking them into account in determining the permitted maximum in respect of a brewer or a group if—

(a) the brewer does not hold, or (as the case may be) no member of the group holds, any interest in them for the time being, and

(b) they were licensed premises immediately after—

(i) brewer ceased to hold an interest in them, or

(ii) member of the group last to hold an interest in them ceased to do so.

(6) In determining the permitted maximum in respect of a brewer or a group, no account shall be taken of any number of premises in excess of the greatest number of licensed premises in which the brewer or members of the group in question actually held interests at one and the same time on or after 10th July 1989.