HC Deb 04 November 1976 vol 918 cc1613-4
17. Mr. Canavan

asked the Minister of Agriculture, Fisheries and Food whether he is satisfied with the policies of his Department as they affect the Scotch whisky trade.

Mr. Strang

Yes. My Department fully recognises the importance of the Scotch whisky industry to the national economy and seeks every opportunity to further its interests at home and abroad.

Mr. Canavan

Is my hon. Friend aware of the growing trend towards exporting whisky in bulk, to such an extent that bulk exports now account for about 35 per cent. of total whisky exports? Does he agree that this trend to export in bulk rather than in bottles presents a threat to the jobs of workers in the whisky and ancillary industries, including workers in United Glass at Bridge of Allan? Will my hon. Friend take the necessary action to stop this practice by the distillers, who are simply trying to make a fast buck instead of looking at the longer-term needs of the industry and the workers involved?

Mr. Strang

I have a great deal of sympathy with what my hon. Friend says, but a considerable number of our workers are employed in the bottling of imported spirits. Therefore, it may be that the action that my hon. Friend should take is in persuading the industry rather than the Government on this matter.

Sir John Hall

Is the Minister aware of the adverse effect upon the cash flow of the whisky industry of having to pay Customs and Excise duty long before it can be recovered in sales? What representations is the hon. Gentleman making to his right hon. Friend the Chancellor of the Exchequer about that?

Mr. Strang

This matter is being constantly raised with us by the Scotch whisky industry. The hon. Gentleman will know that 85 per cent. of the industry's output is for export. In September, there was a sharp increase in whisky exports of 37 per cent. in value and 19 per cent. in volume—a very creditable performance.

Mr. Donald Stewart

Bulk shipment has nothing to do with the distillers. The American Government wish to import whisky in that way. What is much more relevant is the voice of the prophet of doom that duty is to be increased in the mini-Budget that has been mentioned. Would it not be more helpful to the Scotch whisky industry if the Minister made representations to the Chancellor of the Exchequer not to increase the duty?

Mr. Strang

The hon. Gentleman must remember that 85 per cent. of the output is exported. The United States Government do not insist that their imports arrive in bulk; the wine gallonage system of taxation discriminates against bottled whisky. The Government are trying to obtain a modification of that policy.