Minimum pricing ‘would force Scots south’

New research has claimed that implementing a minimum price policy for alcohol in Scotland would lead to hundreds of Scots popping down to England to buy their booze.

A report by the Wine and Spirit Trade Association (WSTA) highlights the fact that the past year has seen a third more Republic of Ireland households heading to Northern Ireland to buy their drink.

The WSTA claims that “huge numbers of Scots” would do the same in England if SNP ministers are successful in their bid to impose a minimum price for alcohol in Scotland, mooted at about 40p per unit.
 
The SNP proposal would result in an average six-pack of lager costing a minimum of £4.80 and a bottle of wine at least £3.60, while there would be a complete ban on two-for-one deals and other price promotions.

While Scottish ministers dismissed the WSTA’s claims, saying that many Irish households do all their grocery shopping in Northern Ireland due to the favourable exchange rate between the euro and pound, Jeremy Beadles, WTSA chief executive, warned of the potential damage to businesses in Scotland.

Beadles said: “What these figures expose is that in the midst of a recession, people will go those extra miles to save money.

“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.”

According to the report, 16% of Irish householders – 250,000 people – do their shopping in Northern Ireland. This figure has increased by a quarter over the past year as the value of the euro has increased to a point where it is almost level with the pound.

Following a 50% increase last year, the Republic of Ireland has the highest excise rates in Europe for wine, as well as the second highest rates for beers and spirits.

The WSTA’s prediction is backed up by data from market research company Nielsen Ireland, which shows that off-trade sales in Northern Ireland rose by 30% in the year to August, while alcohol sales in the Republic fell by 7% over the same period.

The WSTA report says the discrepancy is directly attributable to Irish consumers travelling to the North to take advantage of lower prices for alcohol.

However, a Scottish Executive spokesman dismissed the report, saying: “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.”

Scottish health minister Nicola Sturgeon is expected to announce the proposed minimum price per unit of alcohol soon, with most predictions expecting it to be between 40p and 45p per unit.

The SNP needs the support of Labour’s 46 MSPs to push through the minimum pricing plan. Sturgeon hopes to meet Jackie Baillie, the new Scottish Labour health spokesman, in the next few days.

Alan Lodge, 04.11.2009