MacAskill hits out at whisky 'red herring' in price row

Published on Thursday 2 July 2009 21:20

JUSTICE secretary Kenny MacAskill has hit back at claims that the Scottish Government's plans for minimum alcohol prices would damage the drinks industry.

Sir Ian Good, chairman of Famous Grouse distiller Edrington, claimed on Wednesday there would be a "serious impact" on whisky jobs if the government pressed ahead with its "ill-conceived" plans for a possible 40p per unit minimum price on alcohol. But MacAskill said Good's concerns were a "red herring".

"Far from being 'ill-conceived', minimum pricing is an evidence-based policy supported by experts, including all four UK chief medical officers," MacAskill said.

"To claim minimum pricing would hurt the whisky industry is a complete red herring.

For a start, 98 per cent of Scotland's whisky is exported, but of the whiskies sold in Scotland, the overwhelming majority are already sold well above any likely minimum price.

"Minimum pricing is about tackling pocket-money prices, not responsibly priced premium products like whisky."

However, a Scotch Whisky Association spokesman argued that a minimum pricing policy in Scotland would encourage countries keen to maintain tariffs and barriers in key export markets to follow suit.

"How on earth will we be able to protect Scotch whisky in our foreign markets when these other markets start using public health exceptions to keep us out?" he asked.

MacAskill's claim that minimum pricing would benefit whisky producers – with retailers and producers benefiting from increased profits even if consumption fell – was disputed by the SWA.

The industry body spokesman said this was "nonsense" as retailers would merely use it as an excuse to increase prices.

The SWA estimates that minimum pricing would cut whisky consumption by 23 per cent. "The only thing that is going to happen is the Tescos, Morrisons and Asdas are going to pocket the difference and be laughing all the way to the bank," he said.

But MacAskill maintained: "The Scottish Government is incredibly proud of the Scotch whisky industry and this in no way conflicts with our determination to tackle the binge drinking caused by irresponsible, rock-bottom pricing of some alcoholic products."