Scotch Whisky (Hansard, 25 February 1993)

§ 10. Mr. Canavan
To ask the Minister of Agriculture, Fisheries and Food whether he will arrange to meet representatives of the Scotch whisky industry to discuss future prospects of the industry and those employed in it.

§ Mr. Curry
My right hon. Friend and I have frequent contacts with representatives of the Scotch whisky industry.

§ Mr. Canavan
Is the Minister aware about 70,000 workers are employed directly and indirectly in the whisky industry and that last month, because of the difficulties that are facing the industry, United Distillers proposed 700 redundancies and eight plant closures, including the Rosebank distillery in my constituency? Will the Minister therefore arrange to meet United Distillers to see what can be done to avoid those closures and to save those jobs? Will the Minister urge his right hon. Friend the Chancellor of the Exchequer to introduce a fairer tax regime based on revenue per unit of alcohol? Is it not ridiculous that two thirds of the retail price of a bottle of whisky goes to the Treasury and that the taxation rate on whisky is almost double that on imported wines?

§ Mr. Curry
My right hon. Friend will, of course, hear what the hon. Member says as he prepares his Budget. It is true that in unit taxation, finding a better balance between wine, beer and spirits in the Community as a whole would be to the advantage of the United Kingdom, and we support that approach in the European Community. United Distillers, which is a Guinness company, is undergoing a restructuring caused by difficulties in the marketplace. We are always open to representations by that company and all companies involved in the drinks industry. I am arranging, in any case, for a meeting with that and other major drinks companies in Britain to discuss the whole question of their marketing and Britain's role in the marketplace.

§ Dr. Strang
I am sure that the Minister accepts that the loss of hundreds of jobs in this industry is a matter of grave concern and, in addition to taking up the suggestion of my hon. Friend the Member for Falkirk, West (Mr. Canavan), will he also make clear to his right hon. Friend the Chancellor that the minimum excise rates EC package, which came into operation at the beginning of this year, is quite unacceptable and that when it comes up for review next year it is essential that the Government secure the establishment of something like a level playing field?

§ Mr. Curry
The hon. Gentleman will know that the European Commission is investigating excise duties. The recent agreement at least achieved a standstill, which enables us to consider the matter objectively. I agree that Scotch is one of the United Kingdom's most important export industries. It has achieved substantial growth in export markets, so it is very much in our national interest that we ensure that the taxation regimes to which it is subject put it on a level playing field with other drinks, most of which are deeply inferior to it.