HC Deb 10 April 1978 vol 947 cc305-6W
Mr. Campbell

asked the Secretary of State for Trade if he will initiate action against France in the EEC Court of Justice on the subject of the restrictions placed on the advertising of Scotch whisky and other grain spirits as being a discriminating practice contrary to the provisions of the Treaty of Rome.

Mr. Meacher

The Commission in a reasoned opinion on 26th January 1978 stated that the discriminatory aspects of in administration of the Crown courts in each year since the courts reorganisation based on the Beeching Report.

The Solicitor-General

The number of staff, including circuit administrative staff, serving the Crown courts on 1st April in each year is set out below together with the direct cost charged to the Lord Chancellor's Vote.

Cost £ million
1972–73 8.6
1973–74 10.5
1974–75 12.0
1975–76 16.5
1976–77 19.0

these restrictions were contrary to the Treaty of Rome. It will be for the Commission to initiate action in the courts if France does not comply.

Mr. Campbell

asked the Secretary of State for Trade what is the fiscal discrimination against Scotch whisky and other grain spirits in the member countries of the EEC; will he further state if the EEC Commission is initiating proceedings against these member States for this discrimination, and if he will make a statement.

Mr. Meacher

There is fiscal discrimination against Scotch whisky and other grain spirits in France, Denmark and Italy. In France, whisky, gin and vodka are subject to a higher rate of consumption tax than brandy or rum and additionally pay a manufacturing tax; in Denmark, excise tax on spirits discriminates in favour of Acquavit and Schnapps; and in Italy, taxation on spirits, the cost of State seals for bottled spirits and liquers, and VAT are all higher on cereal and can-based spirits than on grape and fruit-based spirits. The Commission has taken infraction proceedings against all three countries and reasoned opinions confirming breaches of the EEC Treaty have been or are about to be issued. It will be for the Commission to decide whether and when to initiate proceedings in the European Court if these countries do not remove the discrimination.

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