Trade reacts to Scottish ‘no’ vote

Scotland’s affirmation of its place in the United Kingdom, voting no to independence by 55% to 45%, has been met with relief from industry bodies in the Scotch whisky sector.

Scotland voted no to independence by 55% to 45% (Photo: Wiki)

With polls showing the narrowest of margins up until the voting closed on Thursday (18 September), trade representatives have been quick to issue statements expressing their happiness with the pro-union result.

The Scotch Whisky Association (SWA), the trade body that represents 90% of Scotland’s whisky production through its 51 members, commended the people of Scotland for making “a historic choice against the background of the most profound national debate.”

Cheif executive David Frost said, “We welcome the stability that this choice brings and now urge politicians of all parties to work to bring our country together.”

“The referendum debate has shown the need for government and business to collaborate to address long-term economic challenges.”

With the three main UK parties pledging more powers to Scotland in the run up to the vote, he said, “We will be looking closely at plans for further devolution within this context.

“There must now be a renewed focus on improving the business environment so that Scotland’s economy can grow to everyone’s benefit,” he continued.

“The Scotch Whisky industry is determined to play a leading role in shaping discussions that are fundamental to the future success of our industry and our nation.”

Frost’s predecessor at the SWA, Gavin Hewitt, told Channel 4’s Dispatches programme in July of his fear of “retribution” from the Scottish Nationalists if they didn’t lend their support to the independence side, although this was refuted by SNP MP Angus Robertson.

SNP leader and Scottish first minister Alex Salmond (right) was keen to get the Scotch Whisky industry on-board the ‘Yes’ campaign (Photo: Wiki)

Fears were running high in the trade right up to polling day on Thursday, with warnings being issued by economic analysts Rabobank just this week expressing the negative impact that independence would have.

The bank highlighted the threat to the industry’s ability to access EU export markets – which currently account for 37% of Scotch sales – as a result of its loss of EU membership and free trade agreement with member states.

While an independent Scotland would have re-applied for EU membership, the country would likely have been shut out until at least 2018, leaving the Scotch sector “at risk of seeing higher import tariffs for at least two years” according to the report.

Competition from other spirits categories would have increased, and Scotch’s competitiveness in key EU markets would have faltered, said the analysts, continuing:

“The Scottish government would also have a mountainous task in procuring new trade agreements with non EU export markets following independence.”

Miles Beale, chief executive of the WSTA, said, “Scotland is, and always will be, an important player in the UK wine and spirit sector” (Photo: WSTA)

Miles Beale, chief executive of the Wine and Spirits Trade Association (WSTA) said of the ‘No’ vote, “Scottish voters have made an historic choice. Further devolution is certain and the WSTA will be working closely with its members to ensure that any barriers to the way they do business in Scotland – or the rest of the UK – are minimised.

“Scotland is, and always will be, an important player in the UK wine and spirit sector.

“The wine and spirits industry supports a large number of jobs in Scotland.

“Improving the business environment for our members in Scotland and the rest of the UK is a key priority, which is why we will be campaigning for a fairer duty system that benefits Scotland and the rest of the UK.”