BY PAUL HUTCHEON and TOM GORDON Amultinational drinks company opposed to the government's crackdown on alcohol abuse employs a lobbying firm that has hired one of Scotland's most notorious drunken criminals.

Diageo, the world's largest spirits company, is paying Caledonia Consulting as part of its fight against the SNP's policies on irresponsible drinking. One of the firm's "associate directors" is Lord Watson of Invergowrie, the former Labour MSP who was jailed after drunkenly setting fire to a pair of curtains at a political awards ceremony. The event's sponsor that night was Diageo.

A health group has now criticised Diageo for employing a lobbyist that has a drunken criminal on its payroll.

Evelyn Gillan, director of Scottish Health Action on Alcohol Problems (SHAAP), said: "It is ironic that someone who has been in prison for an alcohol-fuelled crime is working for a firm helping Diageo put a stop to innovative policies. Diageo is only interested in maintaining profits, and Caledonia Consulting are helping them do this."

The SNP government last year unveiled plans for a crackdown on irresponsible drinking which included minimum pricing for alcohol, and a ban on off-sales to under-21s and irresponsible promotions.

In a detailed critique, Diageo stated there was "no evidence" to support minimum pricing and described a ban on promotions as "unfair". The firm described the proposal on off-sales as "disproportionate" and plans for separate alcohol checkouts as "ineffective".

Last month, it even drafted in Formula One champion Lewis Hamilton as part of its campaign.

The House of Lords is under scrutiny after four peers allegedly offered to help amend legislation in exchange for cash.The spotlight has since fallen on the consultancy work done by all members of the upper chamber.

Lord Watson, according to his parliamentary register of interest, is an "associate director" of Scottish-based lobbying firm Caledonia Consulting.

The firm, run by former Liberal Dem ocrat councillor Devin Scobie and businessman Darren McDermott, offers "discreet director-led" services and "crisp political audits" at £2000 a time.

Scobie won't name clients, however, the Sunday Herald has established that Diageo is the biggest name on his books. The drinks giant, which owns the Guinness, Johnnie Walker and Smirnoff brands, pays Caledonia Consulting for help on "licensing" issues.

Scobie and Watson have long-standing links to Diageo. The lobbyist has had a 10-year working relationship with the firm through previous employers, while, as a minister, Watson worked with Diageo on the failed bid to bring Euro 2008 to Scotland.

Scobie told the Sunday Herald that Watson did not work with Diageo for Caledonia Consulting, but declined to answer questions on his firm's relationship with the drinks company.

However, former Conservative MSP David Davidson, who also works for Caledonia, did talk about the work for Diageo. "It goes through Devin Scobie that bit," he said. "And as far as I'm aware the only thing that we've had is based on observing the parliament and licensing law, or anything that the parliament considers that might affect the trade."

A spokeswoman for Diageo said: "Caledonia Consulting provide a small level of public affairs support, focused on monitoring. Lord Watson is not a member of the Caledonia consulting team supporting Diageo."

Watson was jailed for 16 months in September 2005 for wilful fire-raising at Prestonfield House Hotel, in Edinburgh after the Scottish Politician of the Year Awards in November 2004. He later claimed to have suffered an alcoholic blackout as he endangered the lives of hundreds of guests.

The peer quit as an MSP after pleading guilty, and was released from prison in May 2006.

Watson did not return calls from the Sunday Herald.

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