HC Deb 01 November 1995 vol 265 cc287-8
5. Mrs. Ewing

To ask the President of the Board of Trade what recent representations he has received from the Scotch Whisky Association on improving the promotion of Scotch whisky within international markets; and if he will make a statement. [38653]

Mr. Oppenheim

We fully recognise the importance of the spirit drinks industry and its contribution to UK export performance and to our performance in general. We have wide-ranging contact at all levels with the Scotch Whisky Association and we give it extensive assistance towards its export effort.

Mrs. Ewing

Does the Minister recognise that the best international promotion that could be given to this vital industry would be to recognise at home the value to domestic industry of the Scotch whisky industry? As more than 45,000 jobs in Scotland are directly and indirectly dependent on the Scotch whisky industry, is it not time for the excise duty levied on Scotch whisky to be put on an equal footing with the rest of the spirit industry throughout the European Union and the rest of the international community? Can the Minister give us an assurance that the DTI will make such representations to the Chancellor of the Exchequer?

Mr. Oppenheim

I appreciate the hon. Lady's concern. In fact, excise duty on spirits has fallen by 15 per cent. in real terms during the past 10 years. If we were to halve excise duty on spirits, and that reduction were fully passed on, the result would be a fall in price for consumers of only about 20 per cent. It is worth remembering that. I expect that my right hon. and learned Friend the Chancellor of the Exchequer, who has been known to enjoy the odd glass of whisky himself occasionally, will take the hon. Lady's comments into account at the end of the month.

Mr. Quentin Davies

Does my hon. Friend agree that the present excise system for taxing alcoholic drinks is not just discriminatory and distortionary as between alcoholic drinks and other drinks or products, but distortionary within the alcoholic drinks business? It would be logical and desirable to move to taxing alcohol content, irrespective of whether it occurs in Scotch whisky, beer, wine or any other alcoholic product. I know that it cannot be done overnight—any reasonable person would accept that—but should we not try to move towards it as a strategic objective?

Mr. Oppenheim

There is much validity in what my hon. Friend says, but he would not expect me to pre-empt my right hon. and learned Friend the Chancellor of the Exchequer's statement at the end of the month.

Mr. Graham

The Minister will not be aware that Chivas Regal is building a massive plant in my constituency which will create a wide distribution network. I therefore have a strong interest in Scotch whisky, as well as enjoying it. Scotch whisky is one of the most popular drinks in the world. Why do the Government not take steps to tackle measures such as those taken by the Japanese Government, who have put massive charges on to Scotch whisky and thereby created further unemployment in our country? We welcome Japanese products, but our products should be welcomed in Japan without being subject to punitive taxation. The Government should do their best to ensure a level playing field.

Mr. Oppenheim

I fully recognise the hon. Gentleman's enjoyment and extensive knowledge of the finer things in life. I assure him that we have referred the Japanese taxation system to the World Trade Organisation disputes settlement procedure, and we hope for a favourable decision before too long.