A CAMPAIGN group has backed claims by a struggling East Riding landlord that pub companies are squeezing licensees financially.

Karl Richardson, licensee of The Bay Horse in Cherry Burton, can no longer afford to carry on running the pub and has had to close its doors.

Mr Richardson told the Mail he has spent £65,000 on the pub and is now declaring himself bankrupt.

He blamed the brewery, Marston's, for the problems, citing its "high renting costs and alcohol prices" which, combined with the credit crunch, he said had made it "extremely difficult" to make a profit.

Alan Canvess, Hull and East Riding branch secretary of the Campaign for Real Ale, said he believed pub companies should ease off licensees in the current economic climate.

He said: "It's a complicated situation as there are issues over the smoking ban and cheap alcohol from supermarkets.

"But the vast majority of pubs are owned by pub groups and they can sometimes be greedy by charging lots on beer.

"These pub groups have buying power, which should be for the benefit of clients. But they have shareholders and pubs are often just viewed as buildings with monetary value.

"If a pub doesn't do well, they can just turn them into offices.

"Many pubs in rural areas are not going to survive if they have to pay £30 extra per cask."

But Mr Canvess does believe the system can work.

He said: "Some groups are fine. Wetherspoons is a shining example. They may not be to everyone's taste, but they keep their prices down and provide their managers with incentives to run the pubs well."

But the British Beer and Pub Association, which represents the industry, believes the criticism is unfair.

A spokesman for the association said: "This is a rather simplistic way of looking at it.

"The prices of commodities such as hops and barley are rising faster than ever, while the Government continues to raise taxes on alcohol.

"Pub companies cannot afford to reduce prices. Focusing on them is diverting away from the real problems of a downturn in the economy."