HC Deb 06 December 1995 vol 268 cc355-6
6. Mr. Simon Hughes

To ask the President of the Board of Trade what representations he has had on the Beer Orders. [2604]

The Minister for Competition and Consumer Affairs (Mr. John M. Taylor)

Representations recently received by my Department include those on the guest beer provision; whether there would be a review of the brewing industry to consider the effects of the beer orders; the terms of leases offered to tenants; and the refusal to supply beer if a brewer suspects duty fraud.

Mr. Hughes

I welcome the Minister to his new job. The Chancellor's decision last week not to increase the duty on beer is clearly welcome, but there is still considerable concern in the brewing industry and particularly in the licensed trade that current arrangements for the licensed trade work against the survival of the local pub. I am not making a party political point, but this year could the Minister look again at all the interrelated issues to secure the future of British beer and of the British pub?

Mr. Taylor

The effect of the Beer Orders has been to weaken the tie, introduce greater versatility in financial matters and introduce guest beers, giving the consumer much more choice and binging competition into the trade.

Mr. Harry Greenway

Is my hon. Friend aware that British brewers strongly welcome the Chancellor of the Exchequer's action on beer in the recent Budget? Do not British beers remain the best in the world?

Mr. Taylor

My word, they certainly do. I wholeheartedly agree with my hon. Friend, but I stop short in my enthusiasm and will not comment on anything that falls within the province of the Chancellor of the Exchequer.

Mr. Hoon

I welcome the Minister to his new position. Does he agree that the Beer Orders have had a dramatic impact on jobs in the British brewing and licensed retail trade? Does he further agree that those jobs are threatened by the 1.1 million pints of beer flooding into Britain, mainly in the back of transit vans? Does he agree that at least 10,000 jobs have been lost in the industry already, causing uncertainty and insecurity? Does he accept the importance of tackling that job insecurity, or is it just a state of mind?

Mr. Taylor

Perhaps I may reciprocate the hon. Gentleman's kind opening comment by wishing him a happy birthday. As the ills of which the hon. Gentleman spoke concern duties charged on beers, they are not matters for me. If the hon. Gentleman is aware of fraud or criminal activity, he should tell the prosecuting authorities as well as the Government.

Mr. John Marshall

I join those who have congratulated my hon. Friend on his promotion to the Department of Trade and Industry, and I repeat what other colleagues have said: the greatest threat to the brewing industry is the level of tax. This year we welcomed the first reduction in whisky duty for a century. May we look forward next year to the first reduction in beer duty for many years?

Mr. Taylor

I am not supposed to comment on the last Budget, so I shall certainly stop short at commenting on the next one.