Wetherspoon founder attacks govt over costs

By Matthew Scuffham

LONDON (Reuters) - Tim Martin, founder and chairman of pubs group JD Wetherspoon (JDW.L) has lambasted the government for its contribution to the industry's rapidly growing cost burden.

Pubs have been hit by significant cost rises over the past year, especially in energy, food, labour, and tax but Martin reckons half of that comes from the government.

"I don't think the Bank of England or economic commentators understand or have been frank about the role of government in cost inflation for businesses.

"The government plays a much greater role than has been acknowledged and for pubs and restaurants, about 50 percent of cost inflation is as a result of government legislation," Martin told Reuters in a telephone interview.

"It's a huge factor that, for some reason, is unacknowledged. People talk about oil and they talk about food costs but that's where they stop," he added.

Martin said Wetherspoon will face excise duty of around 10 million pounds in its 2008/9 financial year and 4 million pounds costs from extra holiday entitlements which the group is obliged to give to staff.

He also said the group faces another 5-million-pound charge as a result of minimum wage requirements and related costs.

"It's about 19 million in total which is more than 50 percent of our non-discretionary cost increases in 2008/9," he said.