Fresh blow to alcohol pricing plan with European ruling on tobacco

Published on Thursday 22 October 2009 22:15

PLANS to set a minimum price for all alcohol sold in Scotland were thrown into fresh doubt last night after the European Court of Justice opposed a similar policy on tobacco. The court's advocate-general ruled against proposals by Ireland, France and Austria to set a minimum price on cigarettes, saying it would break competition laws by benefiting manufacturers.

The drinks industry in Scotland last night claimed the ruling would apply to alcohol as well, and said that ministers should therefore drop their plans immediately.

But health secretary Nicola Sturgeon hit back, insisting the court's ruling on tobacco was "irrelevant" and SNP ministers would press ahead regardless.

The row centres on Scottish Government proposals to set a minimum price on all alcoholic drinks, with 40p per unit widely expected. At that rate, a bottle of vodka – which contains 26 units and can cost less than 7 – would retail at a minimum of 10.40. Large bottles of cheap cider, which sell for less than 3, would more than double in price.

Ministers say the radical moves will reduce the social harm caused by alcohol, both in terms of crime and healthcare.

The announcement yesterday from the European Court's advocate-general is regarded as a clear indication of the full panel's final judgment.

The court repeated previous European Commission rulings that the best way to meet public health objectives was through taxation and excise duties, saying this would not interfere with the setting of prices.

The Scotch Whisky Association's chief executive, Gavin Hewitt said: "Austria, Ireland and France have been told clearly today that minimum pricing is a breach of EU law. The Scottish Government must recognise the legal situation and drop this proposal, which would be hugely damaging to Scottish jobs."

But Ms Sturgeon last night said: "It is entirely inappropriate and irrelevant to translate an opinion on tobacco to the totally different issue of minimum pricing of alcoholic products."

Ms Sturgeon added: "The issue here is ending a situation where bottles of chemical cider are sold for 3, or bottles of industrial vodka for less than 7.

"These are the products favoured by problem drinkers and are exactly the ones that will be targeted by minimum pricing, not quality products sold at responsible prices."

But one drinks industry source added: "Are they now really saying minimum pricing on cigarettes, which are proven to kill you, will be illegal under EU law, but that minimum pricing on alcohol won't be?"

Both the Liberals and the Conservatives say they will oppose minimum pricing, but the legislation could still pass, as Labour has still to decide its position.

Scottish Tory deputy leader Murdo Fraser said: "This ruling is a complete hammer-blow for the SNP and their obsession with blanket minimum pricing."