Supply of Beer (Tied Estate) Order 1989

JurisdictionUK Non-devolved
CitationSI 1989/2390
Year1989

1989No. 2390

MONOPOLIES AND MERGERS

The Supply of Beer (Tied Estate) Order 1989

19thDecember1989

19thDecember1989

Whereas the Secretary of State, in accordance with section 91(1) of and Schedule 9 to the Fair Trading Act 1973 ( a) , caused notice of his intention to lay a draft of this Order to be published in the London Gazette and the Edinburgh Gazette on 22nd August 1989, the Belfast Gazette, the Daily Telegraph and the Financial Times on 25th August 1989 and the Morning Advertiser on 26th August 1989, stating that it was proposed to lay a draft of this Order before Parliament, indicating the nature of the provisions to be embodied in it, stating that a copy of the draft would be available to be seen at all reasonable times in the offices of the Department of Trade and Industry at 1 Victoria Street (Room 020), London SW1 and stating that any person whose interests were likely to be affected by this Order and who was desirous of making representations in respect of it should do so in writing before 10th October 1989;

And whereas the Secretary of State considered the representations duly made to him with respect to the draft of this Order and not withdrawn;

And whereas on 6th December 1989 the Secretary of State laid the draft of this Order before Parliament;

And whereas the said draft as so laid has been approved by resolution of each House of Parliament:

Now, therefore, the Secretary of State, being the appropriate Minister within the meaning of section 56 of the said Act, in exercise of the powers conferred by sections 56(2) and 90(2), (3) and (4) of, and paragraphs 1, 2 and 14 of Schedule 8 to, the said Act, and for the purpose of remedying or preventing adverse effects specified in a report of the Monopolies and Mergers Commission entitled "The Supply of Beer--a report on the supply of beer for retail sale in the United kingdom"( b), hereby makes the following order:-

1.-(1) This Order may be cited as the Supply of Beer (Tied Estate) Order 1989.

(2) In this Order-

"alcoholic strength" has the same meaning as in the Alcoholic Liquor Duties Act 1979 ( c) ;

"beer" includes any beverage of an alcoholic strength exceeding 1.2 per cent which is made with beer;

(a) 1973 c.41; Schedule 9 was amended by the Companies Act 1989 (c.40), section 153 and Schedule 20, paragraph 20.

(b) Cm. 651.

(c) 1979 c.4.

"brewer" means a person who carries on business in the manufacture of beer which is supplied by retail in the United Kingdom;

"brewery group" means a group which is-

(a) a group of interconnected bodies corporate, or(b) a group consisting of a body corporate, or a group of interconnected bodies corporate, all other bodies corporate in which it, or any of them, has a substantial minority holding, and all subsidiaries of those other bodies corporate,

and at least one member of which is a brewer; and a brewery group is a "large brewery group" if one or more of its members holds interests in licensed premises, and the total number of licensed premises in which members of the group hold interests exceeds two thousand;

"interest in shares" includes an entitlement, by a person who is not the registered holder, to exercise any right conferred by the holding of the shares in question or an entitlement to control the exercise of any such right;

"licensed premises" means-

(a) in England and Wales, premises for which a justices' on-licence (within the meaning of the Licensing Act 1964( a), other than a Part IV licence (within the meaning of that Act), is in force, or in respect of which a club is registered within the meaning of that Act;(b) in Scotland, premises in respect of which a public house licence, a hotel licence or a refreshment licence (within the meaning of the Licensing (Scotland) Act 1976 b is in force or which are occupied by a registered club within the meaning of that Act;(c) in Northern Ireland, premises in which the sale of intoxicating liquor is authorised by a licence granted under the Licensing Act (Northern Ireland) 1971 c being premises of a kind mentioned in paragraph (a) or (f) of section 3(1) of that Act, or in respect of which a club is registered within the meaning of the Registration of Clubs (Northern Ireland) Order 1987 d

"notified tied house" means licensed premises of which the name (if any) and address have been notified to the Director General of Fair Trading as premises to be treated as a notified tied house; and for that purpose-

(a) notification may be made or withdrawn at any time, and(b) the making or withdrawal of notification may be effected only by or on behalf of the brewer, or a member of the group, in respect of which the notification is, or is no longer, required for the purposes of the Schedule to this Order;

"relevant purchase" , in the context of an agreement to which a brewer or a member of a brewery group is a party, means purchase by any person who is not a member of the same group, for retail sale on licensed premises, of beer or other drink manufactured or supplied by any person not a party to the agreement;

"subsidiary" has the same meaning as in section 736 of the Companies Act 1985 ( e) ;

"substantial minority holding" means a holding by a body corporate of fifteen per cent or more, or an interest in shares conferring fifteen per cent or more, of the voting rights in another body corporate, other than its subsidiary;

"voting rights" means rights conferred on shareholders in respect of their shares, either at all times or for the time being, to vote at general meetings of the body corporate in question on all, or substantially all, matters.

(3) For the purpose of determining whether a body corporate has a substantial minority holding in another body corporate-

(a) it is immaterial whether a holding is direct or through a nominee or trustee,(b) the holdings of the subsidiaries of a body corporate shall be treated as its own,(c) where one body corporate has a holding in a second body corporate (not being

(a) 1964 c.26...

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