MEMBERS of the Scotch Whisky Association (SWA) contributed an additional £1.2 million to the organisation in the 2017 financial year in order to meet the cost of unsuccessfully challenging the Scottish Government’s minimum alcohol pricing legislation in the UK Supreme Court.
According to accounts filed at Companies House, the industry body, which collected more than £6.7m in subscription fees for the year to the end of December, also raised a special levy of £1.2m from members during the year.
Read more: Scotch Whisky Association takes minimum pricing challenge to Supreme Court
“In order to meet legal costs the council agreed on 5 December 2017 that […] a special levy be imposed by the association upon the members in an amount equal to the amount of costs which are to be determined and awarded against the association,” the association said in the accounts.
A spokesman for the association confirmed that the cash would be used to meet the Government’s legal fees, adding that the final level of costs have yet to be “assessed and determined”.
The case went all the way to the Supreme Court after the SWA, which represents the interests of scotch whisky producers, challenged the Government’s 2012 attempt to introduce a minimum price for a unit of alcohol.
The organisation, which was represented in court by Aidan O’Neill QC and Morag Ross QC, had argued that the policy was anti-competitive and would stifle trade.
Read more: Scotland becomes the first country in the world to introduce minimum pricing for alcohol
The Supreme Court found against the SWA last November leaving the association, as the losing party, to pay for the Government’s defence of the case.
A minimum price of 50p a unit was introduced in May this year.
The additional levy meant the SWA’s turnover for the 2017 year increased by 18 per cent to £8.4m, but as the £1.2m was also treated as an expense it did not have a similar effect on profits. With total administrative expenses rising by 23%, pre-tax profits more than halved to £205,573.
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