Whisky (Hansard, 29 January 1979)

§ 16. Mr. Canavan
asked the Secretary of State for Trade what is the most up-to-date figure for the annual amount by volume of whisky exported (a) in bottle and (b) in bulk.

§ Mr. Meacher
In the 12 months ended December 1978, 74 million proof gallons of Scotch whisky and Northern Irish whiskey were exported in bottles and 32 million proof gallons in bulk.

§ Mr. Canavan
Is my hon. Friend aware of the concern within the Scottish trade union movement about the damaging effect of bulk exports on jobs in the bottling, capping and packaging industries, as well as the long-term damaging effects on the whisky trade itself caused by certain distillers exporting whisky in bulk to overseas companies, which in turn mix it with their own inferior spirits and pass it off as genuine Scotch whisky? If the distillers themselves cannot face up to this with the same degree of responsibility as the trade union movement, is it not about time that the Government stepped in to stop this practice?

§ Mr. Meacher
The Government are certainly very much aware of this problem. That is why we asked the NEDO distilling sector working party to produce a report on this matter. My hon. Friend will probably know that that was published last month. Its conclusion was to recognise the undesirability of bulk exports but also the difficulty of blocking them in a way compatible with our international trade obligations. But we look for a united front within the industry, which at present is not forthcoming. I should be very glad to discuss this matter further with my Friend—perhaps over a drink.

§ Mr. Sims
Is the Minister aware that, although there are differences of opinions within the industry about export in bulk, there are no differences about the real difficulty that the Scotch whiskey industry faces at present in respect of parallel exports and dual pricing? He referred to the sector working party report. Does he support its recommendation that pressure should be put upon the EEC Commission to accept a more realistic approach to this problem?

§ Mr. Meacher
We are well aware of this problem of dual pricing, particularly as it affects distillers. All that I can say about the sector working party report at this stage is that we are closely studying its implications, including the one mentioned by the hon. Member.

§ Mr. Buchan
Has my hon. Friend noted that when a question such as this is raised, which is of such importance to the people of Scotland and our export trade, not one member of the Scottish National Party is present, either in bulk or in bottle?

§ Mr. Meacher
Perhaps they have gone out for a drink.

§ Mr. MacFarquhar
Since there is a section of the Japanese delegation arriving next month which will be dealing with the foodstuffs area of consumer products, can my hon. Friend take up this matter with the Japanese in an attempt to persuade them that the best way of improving relations with Britain in this field is by importing in bottle rather than in bulk?

§ Mr. Meacher
We shall certainly be making that point to the Japanese. I am glad that, last March, they made an advance cut of 12½ per cent. in the tariff on Scotch, but we are pressing the point that we want a further and bigger cut in order to reduce the over-large differential in import duty between bourbon and Scotch.