§ 11.14 a.m.
§ Lord Montagu of BeaulieuMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper, but in asking it I wish to declare my interest as president of the English Vineyards Association.
§ The Question was as follows:
§ To ask Her Majesty's Government why the excise duty on "British Wine" not made from British grapes is half that charged on English and Welsh wine made from English and Welsh grapes and whether they intend to continue to favour wine made from grape must from non-EEC countries and discriminate against wine produced from English and EEC must.
§ The Minister of State, Treasury (Lord Cockfield)My Lords, there is no distinction according to country of origin. The distinction is between wine made from fresh grapes and that manufactured from a concentrate, whether imported or home-produced.
§ Lord Montagu of BeaulieuMy Lords, while I reluctantly accept the Government's difficulties in regard to tax, may I ask my noble friend whether he would agree that it is grossly unfair to genuine English wine producers and misleading to the general public that they should allow a situation to continue whereby producers of British wine do not have to conform to EEC regulations in regard to labelling, or indeed to our own Trade Description Acts? Would my noble friend further agree that the only British content in so-called British wine is British water?
§ Lord CockfieldMy Lords, one must admire my noble friend's tireless campaign on behalf of the producers of English and Welsh wine. The question of labelling is outside the scope of this Question. The simple truth of the matter is that we are dealing here with two quite different products—and I am certain that my noble friend would regard the product of English vineyards made directly from the fresh juice of the grape as very different from the product manufactured from an imported concentrate.
§ Lord Ponsonby of ShulbredeMy Lords, is the Minister aware that many overseas visitors to this country like to taste the exellent white wine made from English and Welsh grapes but are put off doing so because the price of the wine is often considerably higher than the price of wine imported from Europe? Is he able to do something about that?
§ Lord CockfieldMy Lords, that is a matter about which I could not do anything, because the duty, which is the only element in the price for which Her Majesty's Government are responsible, is the same whether the wine is imported or grown in this country.
§ Lord MonsonMy Lords, bearing in mind the praise-worthy efforts made by the English wine industry since the end of the last war, in the face of far from favourable climatic conditions, may I ask the Minister whether he would agree that English vineyards are extremely poorly treated in the matter of grants and tax allowances when compared with their Continental counterparts, and indeed when compared with other sectors of British agriculture?
§ Lord CockfieldThat is quite outside the scope of the Question before the House, my Lords. It is perfectly true that conditions in this country often diverge from conditions in other EEC countries, sometimes to our advantage and sometimes to our disadvantage.
§ Lord ReayMy Lords, while everyone would wish the English and Welsh wine growers well—and, considering the climate, would regard their achievements as remarkable—may I ask my noble friend to give an assurance that no measures will be taken by Her Majesty's Government which would damage the vital interests of the long-established British wine industry?
§ Lord CockfieldMy Lords, that again is a question which lies outside the scope of the Question on the Order Paper. As my noble friend knows, it is not the custom ever to anticipate changes in duty in one direction or another.