Minimum price plan falls foul of EU law

Published on Saturday 18 July 2009 19:46

PLANS to stop the sale of cheap drink could be halted because they fall foul of EC free trade rules, opponents have claimed.

Scottish Ministers want to slap a minimum price on all alcohol sold in shops, so that cheap strong drink such as some cider and cut-price vodka is stopped.

But in two separate statements, the EC has confirmed that the moves could be struck down by the European courts. The Irish Spirits Association is already preparing a case to take to the European Court of Justice, on the grounds that the move violates EC law.

Ministers are preparing to support a 40p per unit price on drink. If passed, a bottle of vodka – which contains 26 units of alcohol but can now be bought for less than 7 – would retail at a minimum of 10.40. Similarly, large bottles of cider, which can be bought for under 3, would more than double in price.

The SNP Government argues the moves can be passed on public health grounds because of the huge social cost of alcohol abuse in Scotland.

But EC chiefs issued two warnings last week over the plans.

In a written answer to MEPs, Vice-President of the EC Gunter Verheugen said if the plans put imported drink at a disadvantage they would be deemed illegal under Article 28, which supports the free movement of goods.

Verheugen explained: "The court has ruled that national rules fixing retail prices for alcoholic beverages could constitute measures having an equivalent effect to quantitative restrictions on imports contrary to Article 28 EC."

His statement was supported by EC lawyers who wrote to Tory MEP Struan Stevenson last week. They state that if non-Scottish products are prevented from being supplied at a price lower than Scottish products, "the measure would violate ...EU internal market rules".