HL Deb 13 July 1993 vol 548 cc5-7WA
Lord Cocks of Hartcliffe

asked Her Majesty's Government:

What is the system by which the Customs and Excise can check the commercial records of the brewers.

The Minister of State, Department of Transport (The Earl of Caithness)

Following the changeover to the end product duty structure on 1st June 1993, the close physical controls applied by Customs and Excise to brewing procedures have ceased. To ensure that brewers are properly accounting for duty, Customs and Excise will periodically examine their commercial systems and records.

Lord Cocks of Hartcliffe

asked Her Majesty's Government:

What efforts they have made to consult the National Consumer Council during the Customs' current processes of analyzing the data of the Brewers' Society concerning the new tax system; and

When they contacted the National Consumer Council regarding the Brewers' Society's claim that the new tax system would result in about £60 million in additional duty.

The Earl of Caithness

The Government have not contacted the National Consumer Council in connection with the data provided by the Brewers' Society concerning the new beer duty system.

Lord Cocks of Hartcliffe

asked Her Majest's Government:

Whether non-United Kingdom brewers made representations to the Customs and Excise that the new tax system for beer in the United Kingdom was not fiscally neutral; and if so, when.

The Earl of Caithness

Customs and Excise have not received any such representations.

Lord Cocks of Hartcliffe

asked Her Majesty's Government:

Whether the Brewers' Society claimed that the requirement for a guarantee for the potential duty on beer held in duty suspension would lead to higher prices and the weakened strength of their beers.

The Earl of Caithness

The end product system introduced on 1st June 1993 provides new and widespread duty suspension facilities for UK-produced beer. To protect the revenue, brewers are required to provide guarantees for the potential duty if they wish to hold or move significant amounts of beer in duty suspension. Information obtained by Customs indicates that the cost to brewers of providing such guarantees is considerably less than the financial benefits they will obtain from the new duty suspension arrangements. The Brewers' Society has not claimed that the cost of guarantees will affect the strength or price of beers.

Lord Cocks of Hartcliffe

asked Her Majesty's Government:

What is the agreement between the Customs and Excise and the Brewers' Society concerning the non-drinkable sediment in cask-conditioned beers, and whether this agreement would increase the financial burdens of the brewers.

The Earl of Caithness

During consultations on the new beer duty system, Customs and Excise agreed with the Brewers' Society that the non-drinkable sediment in cask conditioned beer would not be liable to duty, subject to certain conditions to ensure the protection of the revenue.

This arrangement, which was sought by the society, will not increase the financial burdens on brewers.