Whisky sour as pricing accusations fly

Published on Wednesday 17 March 2010 21:44

RELATIONS between MSPs and drinks industry representatives sank to a new low yesterday, amid fierce arguments over proposals for minimum pricing.

Whyte & Mackay's chief executive John Beard was accused of scaring his own workers by overstating the threat of job losses as a result of the price plan.

In turn, Mr Beard accused Scottish Government ministers of seizing upon support for minimum pricing in Westminster with ''a certain gleefulness'', even though it would have a negative impact on Scottish companies.

The Wine and Spirit Trade Association (WSTA) accused SNP MSP Michael Matheson of trying to score political points at the expense of Whyte & Mackay.

Drinks giant Diageo was heavily criticised for signing a Formula 1 sponsorship deal after making 900 people redundant.

At Holyrood's economy committee yesterday, Mr Matheson, who was Mr Beard's tormentor-in-chief during last week's health and sport committee hearing on the Alcohol Bill, asked four times why he had not previously admitted that the 300 job losses he talked about would be the result of UK-wide legislation, rather than in Scotland alone.

"The evidence taken last week was specifically in relation to the Alcohol (Scotland) Bill," he said. "Why did you not explain fully when you were scaring workers in places like Grangemouth?"

The Whyte & Mackay boss replied: "Our belief is that anything introduced in Scotland risks extending across the UK."

He added: "There does seem to be a certain gleefulness (among Scottish ministers] when other markets, other countries, consider it (minimum pricing].

''Should minimum pricing be introduced across the UK by Westminster, following the introduction in Scotland, would this government defend Scottish jobs?"

WSTA chief executive Jeremy Beadles said: "It is regrettable that Mr Matheson has sought to score political points using a major Scottish employer for his purposes. Whyte & Mackay have been happy to clarify any evidence around the likely consequences. They have consistently made clear that minimum pricing will have a detrimental impact on the Scottish spirits industry, with implications for Scottish jobs."

Diageo's Johnnie Walker brand is sponsoring Lewis Hamilton and Jenson Button's McLaren F1 team, while Whyte & Mackay are backing Force India.

Managing director of Diageo Scotland Bryan Donaghey defended his company's 400 million advertising and promotions budget and said: ''Formula 1 has a great global audience. Like all things, it might work for a while, then we look at other things.''

But SNP MSP Stuart McMillan said: "In terms of the restructuring, how do the both of you justify to your employees that are about to lose their positions signing deals for advertising with Formula 1 teams?"

Last November, it was revealed Whyte & Mackay was worried minimum pricing would lead to job losses, including at its main bottling plant in Grangemouth.

It currently estimates 87 jobs will be lost, rising to up to 300 should a 50p minimum price be adopted by the rest of the UK.

When asked about the impact of a 40p minimum price, Mr Beard said it would be "negligible".