HL Deb 26 June 1975 vol 361 cc1559-60

3.11 p.m.

Lord BELHAVEN and STENTON

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what the total revenue per annum obtained by the Excise authorities from the whisky industry in the island of Islay has been over the last three years for which figures are obtainable.

Lord JACQUES

Duty is paid on release of whisky from bond. Whisky from Islay is mainly sent to bonded warehouses on the mainland for blending with other whiskies. Since no differentiation between the sources of blended whisky is made when duty is paid, it is not possible to say how much is attributable to the island of Islay.

Lord BELHAVEN and STENTON

My Lords, I thank the noble Lord very much for that profoundly disappointing reply which I am sure will be received with disappointment by the island of Islay. Can he possibly indicate whether, with a little more research, Her Majesty's Government would be able to give a more definite reply? Would he indicate whether Her Majesty's Government expect the amount of Excise revenue on whisky to increase in view of the recent increase in tax, and have they any idea of the effect on employment in the whisky-producing areas as a result of the tax announcement in the recent Budget?

Lord JACQUES

My Lords, about four-fifths of our whisky production is exported free of duty and it is not possible to say haw this proportion varies among the constituents used for blending. I therefore cannot give an estimate. As for employment, I think it is in accordance with experience that when a duty on a product is raised and the price is raised in consequence, for the time being there is a slackening off of demand, but subsequently it levels off and there is often an increase. I do not think that my right honourable friend was harsh with the duty on alcohol; if, for example, one takes the rate of duty as at April 1970 and maintains that in real terms, then the increase in the price of whisky would not have been 64p per bottle but 120p.