HC Deb 04 March 1993 vol 220 c436
1. Mr. Pike

To ask the Chancellor of the Exchequer what representations he has received on the impact on British industry of rates of excise duty.

The Economic Secretary to the Treasury (Mr. Anthony Nelson)

My right hon. Friend has received a considerable number of representations on Budget matters.

Mr. Pike

Recognising the importance of the Scotch whisky industry to jobs in Scotland and to the balance of payments, may I ask what the Government will do to ensure that that industry does not continue to be greatly disadvantaged by comparison with the wine industry? Are we going to allow it to be destroyed?

Mr. Nelson

The Government acknowledge the importance of that industry and representations have been made to my right hon. Friend by the Scotch whisky industry and associations. I cannot, of course, anticipate anything that might be in the Budget.

Mr. Bill Walker

Does my hon. Friend accept that the premium exporting industry of Scotland is the Scotch whisky industry, which delivers £1.7 billion worth of exports every year? Given the 10 per cent. reduction in United Kingdom sales of Scotch whisky in recent times, is not there good reason carefully to examine the relationship between the excise duties on whisky and those on other drinks?

Mr. Nelson

My hon. Friend is a tireless champion of the industry. The point that he has made today has been well made by the industry to my right hon. Friend and I am sure that he will take full account of those representations.

Dr. Marek

Does the Minister accept that there is a vast haemorrhage of money from the Treasury because of the distortions caused by cross-border trade as a result of differing excise duties in the United Kingdom and in mainland Europe? Can he accept as Government policy a process of harmonisation of those rates to get rid of the cross-border distortions?

Mr. Nelson

The Government always accepted that a cost would be involved in the single market, but it involves opportunities as well. The Government have undoubtedly taken measures to reduce yield loss through cross-border trading, including the deployment of about 130 Customs and Excise officers to inland surveillance, and from the beginning of this year there will be a considerabily increased number of prosecutions as a result of arrests.