HL Deb 16 May 1988 vol 497 cc5-6

2.47 p.m.

Lord Gainford asked Her Majesty's Government:

By how much duty on low-alcohol mixed drinks will decrease as a result of the changes announced in the Budget.

The Parliamentary Under-Secretary of State, Department of Transport (Lord Brabazon of Tara)

My Lords, I hope noble Lords will agree that it is desirable to encourage consumers—especially the young—to switch from higher strength wines and spirits to lower strength alcoholic drinks. The present tax structure inhibits the development of the market for lower alcohol drinks. The change is intended to encourage the trade to make a wider range of such drinks more readily available. For certain products the duty could be reduced by as much as 75 per cent.

Lord Gainford

My Lords, I thank my noble friend for that Answer. Has he any information as to the effect of the encouragement to drink low-alcohol and alcohol-free beers and lagers?

Lord Brabazon of Tara

My Lords, if a beer or lager is alcohol-free, it will not be affected by these proposals because there is no duty on them. However, beers with an original gravity below 1,030 degrees at present pay the duty at the 1,030 degree rate; but from 1st October beers with an original gravity below that level will pay proportionately less duty.

Lord Mason of Barnsley

My Lords, is the noble Lord not aware that non-alcoholic and low-alcoholic beers and lagers are more expensive than alcoholic drinks, and that that is working against the Government's policy of discouraging drinking and driving? Therefore, what representations have the Government made to the Brewers Society in order to reduce immediately the cost of these non-alcoholic drinks?

Lord Brabazon of Tara

My Lords, the price at which such drinks are sold is a commercial decision for the brewer or the publican. It is not a matter in which the Government can intervene. I understand that some of the drinks cost more to manufacture than beers containing alcohol.

Lord Stoddart of Swindon

My Lords, I appreciate that it may be difficult to intervene, but is the noble Lord aware that my noble friend Lord Mason is absolutely right? Is he aware that sometimes half a pint of lemonade in a pub can cost as much as half a pint of bitter? In a supermarket one can buy lemonade at 50 pence for two litres; landlords are charging 50 pence for half a pint. Surely, we must be able to do something about that.

Lord Brabazon of Tara

My Lords, I am not sure what we can do. If people are prepared to pay 50 pence for half a pint of lemonade in a pub, presumably that is the market rate.