Scottish minimum price plans “illegal”

Plans to set minimum price laws for the sale of alcoholic drinks in Scotland have been labelled illegal and ineffective by industry leaders. The Scottish government wants to introduce a minimum price per unit of alcohol in order to combat below-cost selling and alcohol misuse in the country, but key players in the sector have slammed the strategy.

The plans revealed on Monday, 2 March, by Health Secretary Nicola Sturgeon and Justice Secretary Kenny MacAskill, aim to bring in minimum pricing and give local authorities the flexibility to ban off-trade sales to under-21s in an effort to tackle what is perceived to be Scotland’s primary public health concern – alcohol misuse.

Speaking at the unveiling of Changing Scotland’s Relationship with Alcohol: A Framework for Action, Health Secretary Ms Sturgeon said: “We have listened to those who responded to the consultation and modified our proposals where appropriate. But we remain determined to press ahead with tough policies to tackle alcohol misuse.”

Other proposals address the issue of off-sales promotions, looking to ban ‘three for two’ and other cut price offers, and the selling of alcohol as a ‘loss leader’. The restriction of off-trade alcohol marketing and displays has also come under the microscope, with the Framework looking at limiting them to specified areas. Finally, there are plans to put in place the legal power to introduce a Social Responsibility Fee for some retailers.
 
Despite recognising the need for Scotland to tackle the problem of alcohol misuse, the Scotch Whisky Association (SWA) has warned that any such legislation would most likely be in breach of both EU and International Trade law, which states that minimum price-setting acts as a barrier to fair trade, both domestically and in export terms.

 
“It is hard to believe any Scottish government would bring forward proposals that are likely to be both illegal in international trade law and risk damaging the whisky industry,” said Gavin Hewitt, chief executive of the SWA. “Regrettably, minimum pricing achieves both and undermines our success in breaking down illegal discrimination against Scotch Whisky around the world.”
 
Scottish Retail Consortium director Fiona Moriarty echoed the SWA’s claims, adding that the government’s thinking on the issue is fundamentally flawed.
 
“The Scottish government is wrong to believe there is a link between price and alcohol misuse,” she said. “Prices and promotions are broadly the same across the UK, but alcohol-related deaths are far higher in Scotland than England which clearly shows Scotland’s relationship with alcohol is deep-rooted and complex.”
 
Brewer SABMiller, which counts leading international beer brands such as Grolsch, Miller Genuine Draft and Pilsner Urquell among its stable, believes the proposals represent a failure to address the key issues surrounding alcohol misuse in Scotland. The brewer also said that undermining individual judgement and accountability could make it impossible to encourage lasting behavioural change.
 
“Our primary concerns with the Scottish government proposals are that they focus on blunt and ineffective measures that fail to target the problems where they occur,” said Kristin Wolfe, head of alcohol policy at SABMiller.  “It is our view and experience that action against alcohol misuse needs to be targeted specifically towards those who do not drink responsibly or legally, rather than all adult consumers.”

Although acknowledging the problem of alcohol misuse in Scotland, the Wine and Spirits Trade Association (WSTA) feels that the proposed measures are headline grabbing, rather than genuine efforts to tackle the problem.

WSTA head of communication Gavin Partington said: “Our view is that these measures do not tackle the root causes of alcohol misuse in Scotland, which can be linked to poverty, unemployment and poor health. We need serious measures that will address these problems, not proposals that will punish all consumers.

“We feel they have missed an opportunity. The Framework makes no mention of education or of the enforcement of laws. Also, we find it very odd that at a time of economic problems for both businesses and consumers, the government in Scotland is looking at tax increases.”

Partington concedes that there is clearly an intention to proceed with these plans, and that is why the WSTA will be working hard to convince other political parties that they should fight against the measures.

As for the possibility of similar policies being enforced in England by Westminster, Partington offered the opinion that this is definitely a danger. “Although not currently looking at minimum pricing policies, Westminster has always suggested it would look at them at some point,” he continued. “The risk of a crossover is very real, allied to elements of political support. This is another reason why we are campaigning so strongly against it.”

Alexis Hercules, 04.03.09