HC Deb 09 December 1981 vol 14 cc846-7
2. Mr. Myles

asked the Secretary of State for Scotland if he is satisfied with the prospects for employment in the Scotch whisky industry.

Mr. Alexander Fletcher

I expect that, after a period of necessary adjustment in stocks, production will rise again in the medium term, and that should help to sustain employment prospects in the industry.

Mr. Myles

Is my hon. Friend aware that the Scotch whisky industry, because of the world recession, is facing severe problems, especially in the United States, and that it is trying to combat them by a promotional effort in that country? Will my hon. Friend give every support to that effort?

Mr. Fletcher

I am aware that, as my hon. Friend says, the Scotch whisky industry is suffering from the world recession. He will know that it is suffering from the fact that difficulties are being caused, for example, in the United States, where there is at present a preference towards lighter drinks such as vodka. We shall do all we can to assist the Scotch whisky industry to promote exports overseas. We are encouraged by some noises from Japan in recent days that there may be a more helpful attitude in that country towards further imports of Scotch whisky.

Mr. Maclennan

Has the hon. Gentleman read the report in today's Financial Times that the French are having considerable success in promoting brandy in Hong Kong because of the belief there that brandy has strong aphrodisiac qualities, whereas whisky is alleged to reduce the libido? Will the hon. Gentleman do his best to ensure that that scurrilous claim is denied?

Mr. Fletcher

I must confess that I would have preferred the hon. Gentleman to have written to me about that entirely false allegation. The publicity that he has given it makes it a little more difficult for us to deny it.

Mr. Pollock

Is my hon. Friend aware that at the beginning of this year the distilling sector was operating at only 55 per cent. of full capacity, and the bottling and blending sector at no more than 72 per cent. of capacity? Is he also aware that the situation is generally recognised to have worsened since then, and the industry hopes that the Government will give it all possible support at this critical time?

Mr. Fletcher

I agree that the industry is going through a difficult time, for the reasons that we have discussed. In our export promotion effort and in other ways we shall do all that we can to make sure that the industry soon returns to its leading position in the world drinks league.

Mr. O'Neill

Does the Minister agree that the sums being made available by the Scotch Whisky Association are totally inadequate to meet the challenge of white spirit, and that, if the Scottish industry is to be protected, more will have to be done to shake people out of their complacency?

Mr. Fletcher

The hon. Gentleman is wrong to measure the effort being made by the industry merely in terms of the money made available by the Scotch Whisky Association. He must also take into account brand promotions, which must run into millions of pounds a year at home and abroad.