Minimum pricing Bill upsets whisky chiefs

Reporter

Tuesday 10 May 2011

THE whisky industry has said it wants an urgent meeting with the new SNP Government over its plans for a new Bill on minimum pricing amid claims that it could cripple Scottish exports.

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JASPER HAMILL

The Scotch Whisky Association warned that the SNP’s plan to resurrect the policy, which was defeated last year, could have “long-term consequences” for the industry. It accounts for one-quarter of the country’s exports.

The SNP made a manifesto promise at the Holyrood election to introduce minimum pricing to help address Scotland’s drink culture and the measure could be pushed through as part of their first legislation programme during the party’s second term.Under previous legislation, it wanted a minimum price of 45p per alcoholic unit, raising the price of the cheapest beers, wines and spirits on shop shelves.Although the proposals, which aim to cut alcohol deaths and drink-related violence, have widespread support of both medical groups and the police, the association said yesterday: “We will be seeking an early meeting with the Scottish Government to encourage it to understand all the implications of minimum pricing, including the long-term consequences.“We remain convinced there are significant legal difficulties with the policy.“We are also concerned at the long-term effect on the Scotch whisky industry in our export markets, a matter we hope the Government will consider closely given its policy priority to boost exports.”The association fears that minimum pricing could encourage other countries to introduce health-based taxes, which could be aimed at reducing imports of Scottish whisky.It described the plans as “a green light to countries, already keen to protect local markets, to introduce spurious health-justified restrictions to keep out Scotch whisky, which is often the main imported competition”.“These proposals risk undermining Scotch whisky exports and are highly likely to face an international legal challenge”.The SNP’s manifesto also promised to boost exports by 50% within six years.The Scottish Government indicated it would be unable to confirm whether a meeting would take place.First Minister Alex Salmond has yet to formally appoint his new Cabinet. A spokeswoman said: “Any invitation will receive a response in due course.”The SNP’s minimum pricing plan was rejected by Holyrood’s Health Committee last year. Labour, the Conservatives and the Liberal Democrats opposed the plan and voted against it.Labour opponents claimed the measure was “effectively a tax on the poor” while the LibDems said it would have “a marginal effect on hazardous drinkers and gives a windfall to retailers”.However, the British Medical Association Scotland (BMA) provided evidence alcohol was involved in more than 5500 GP appointments in Scotland in just one day during March.This amounts to a cost of more than £28 million a year to the NHS.No-one was available for comment from BMA Scotland.

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Minimum pricing Bill upsets whisky chiefs

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