Minimum alcohol pricing: MSPs reject plans to recoup ‘windfall’ profits

PLANS to stop drinks retailers from making “windfall” profits when a minimum alcohol price is introduced have been rejected by MSPs.

Labour wanted the Government to estimate what profits would be made through the new minimum price which is introduced later this year.

Holyrood’s health committee was told today that a minimum price of 50p could see the alcohol industry enjoy windfall profits of £140 million, most of which will go to supermarkets

But health secretary Nicola Sturgeon said: “My view is not just that this measure is unworkable and technically flawed, I also believe it is unecessary because we have adequate measures in place to address this issue and to enable us to work together in the way we see fit for the future.”

The public health levy on supermarkets is estimated to raise £110 million in the years ahead, she added.

Labour is isolated in opposition to the Scottish Government’s Alcohol Minimum Pricing Bill

And Ms Sturgeon added: “I think this is something of a fig leaf for those who have found themselves on the wrong side of this argument for political rather than health reasons.”

Labour health spokesman Richard Simpson today lodged an amendment at Holyrood today calling on the Government to curb this.

“My windfall today does not prescribe exactly how the windfall is recouped to the public purse, only that it should be recouped,” Dr Simpson told MSPs today.

He said the additional Government funds could be used to tackle alcohol problems and that Labour could support the “entire bill” when it comes back before Parliament if the measure was accepted.

MSPs voted 6-3 against the Labour plans.