THERE'S no doubt about it, pubs in the region are doing a roaring trade. A trip down any of the North-East's busy high streets on a Friday or Saturday night will confirm this fact.

And though healthcare groups and politicians voice public concern about the harmful effects of binge drinking, the tills of pubs and bars continue to chime.

But many of the region's licensees complain that while they mop the bar and charm the punters, their profits are being creamed off by the major pub companies which own them.

For running in tandem with the rise of the alcopop has been the growth of the so-called pubco.

The vast majority of the UK's pubs are now owned by major pub companies - the top four pubcos own 22,000 venues between them.

At the end of this month, the House of Commons trade and industry select committee will report back on an inquiry over anti-competitiveness in the industry.

During evidence for the inquiry, pubcos came in for heavy criticism over a wide variety of business practices and, in particular, in the way they treat tenants.

Small business groups claim the pubcos have tenants "over a barrel" because licensees are forced to pay above the market price for beer and are subject to inspection at any time.

One of the major complaints raised in the inquiry centres on agreements, known as beerties, which require tenants to buy their drinks exclusively from their pubco landlord.

Sam Stainsfield is the licensee of Knights pub in Hartlepool, which is owned by Enterprise Inns, the UK's biggest pubco.

Enterprise Inns, which owns more than 9,000 pubs, joined the FTSE 100 of the UK's top 100 companies in March this year. Last year, it declared a 51 per cent increase in profits to £173.2m.

But Sam claimed those profits were being achieved by tying licensees to highly restrictive contracts, which gave them little or no room for manoeuvre.

She said: "Everything in this place is tied to Enterprise, everything right down to the profits from the gambling machine.

"I have to buy my beer from them at the prices they dictate. Some of the pubs in Hartlepool can sell beer cheaper than I can buy it. Under these kind of constraints, how can I be competitive?"

The Federation of Small Businesses (FSB) has been one of the main critics of pubco practices.

The FSB, which gave evidence during the select committee hearing, claims many of its members are barely able to scrape a living because of restrictions imposed on them by their pubco landlords.

During submissions to MPs, the FSB claimed a licensee in the west country was making less than £8,000 a year.

Constraints on tenants have led to some licensees buying stock outside of their contracts in order to get a better return.

Known as backdooring this illegal practice has seen a number of wholesalers and licensees prosecuted for breaching their contracts with the pub companies.

Colin Stratton, chairman of the Teesside branch of the FSB, said: "All we are really asking for is freedom in the marketplace. There's no doubt about it, the beerties are a restrictive practice.

"A great many of our members are unhappy at the way they are being treated by the pubcos. They feel like their hands are tied behind their backs. There is no opportunity for them to show enterprise."

Many of the criticisms against them have been challenged by the pubcos. They point out that despite accusations of restrictive practice, people are still queuing up to run pubs.

Moreover, the Office of Fair Trading told MPs there was nothing to suggest pubcos were operating in an anti-competitive way.

Enterprise were contacted about the allegations of restrictive practise but declined to comment.

A further consequence of what has been called the "Macdonaldisation" of the pub industry is the commercial pressure exerted on small-scale breweries.

As pubcos swallow up more and more pubs, their existing contracts with major breweries leave small and regional brewers with an ever-decreasing market to sell to.

A spokesman for Camerons, the region's largest independent brewer, said although it had contracts with many of the pubcos, there was a great deal of sympathy for smaller operators.

He said: "It goes without saying, it's much easier to sell to the Dog and Duck down the road than to a big national company. Things have certainly got harder."