Proposed minimum pricing on alcohol may lead to shoppers stocking up in England, says industry body

Published on Tuesday 3 November 2009 17:31

THE Wine and Spirit Trade Association (WSTA) claimed retailers south of the border will profit from the measures planned by the Scottish Government.

The organisation said shoppers from the Republic of Ireland are going to Northern Ireland in order to buy cheaper alcohol.

The WSTA said Ireland has the highest excise rates in Europe for wine and the second-highest excise rates for beer and spirits, arguing that this is why people are buying alcohol in Northern Ireland.

And it said sales of alcohol in Northern Ireland had increased by 30% in the year to August and off-sales in the Republic of Ireland had fallen by 7% in the same period.

The group's chief executive, Jeremy Beadles, said: "What these figures expose is that in the midst of a recession, people will go those extra miles to save money.

"The Scottish Government is preparing to hand England a massive competitive advantage: retail in England will profit and in Scotland sales will fall, having a damaging impact on the economy, particularly in the Borders.

"Again, we are seeing more evidence mounting up that the Scottish Government's plans will be both ineffective and damaging to the Scottish economy."

But a Scottish Government spokesman said: "This is a bogus comparison as minimum pricing will only raise the price of cheap, high-strength products like white ciders and value spirits sold for rock-bottom prices and favoured by problem drinkers, not the responsibly priced

products favoured by the majority.

"Some people from the Republic travel to Northern Ireland because their entire grocery shop is cheaper due to the exchange rate. They don't travel just to buy alcohol.

"Most Scots live a considerable distance from the English border and would spend far more on petrol than they would save on alcohol.

"Evidence from research by the University of Sheffield shows that minimum pricing and a ban on irresponsible promotions could prevent hundreds of alcohol-related deaths, cut illnesses and crime and save Scottish taxpayers millions of pounds of every year.

"We have to listen to the evidence of what works and put the health of the Scottish people ahead of the narrow interests of self-declared lobbyists."