Scotch Whisky industry challenges minimum pricing of alcohol

- and is accused of putting profit before health

The Scotch Whisky Association (SWA) is taking action in Europe and the UK against the Scottish Government’s minimum unit pricing (MUP) legislation, including a complaint to the European Commission and legal action through the Scottish courts. It is being joined in its opposition by other UK and European Union wine, beer and spirits organisations and companies. It is understood that the SWA and its allies will claim that MUP would be an illegal barrier to trade and would damage the Scotch Whisky industry. They will also argue that MUP will be ineffective in reducing alcohol harm, but will penalise responsible drinkers and put more pressure on household budgets.

In its statement, the SWA claims that “the Scottish Government’s own modelling illustrates that MUP will not reduce the number of hazardous drinkers and will instead force responsible drinkers to pay much more.”

The statement continues:

“Scottish Government figures show 73% of alcohol sold in the “off trade” will have to go up in price. Recent statistics reveal that alcohol consumption and alcoholrelated harm have been falling, calling into question the need for MUP. But the Scottish Government has decided to press ahead with its plans.

During the Parliamentary process, the Cabinet Secretary for Health, Nicola Sturgeon, said she expected the policy to be subject to legal challenge. The Scottish Conservatives have called for legal clarity and Scottish Labour has raised doubts over the legality of MUP.

“The SWA has been left with no option but to maintain its opposition to the legislation by lodging a complaint to the European Commission (EC) and filing a Petition for Judicial Review with the Scottish Court of Session in Edinburgh.

Now the Scottish Government has notified its plans for an MUP of 50 pence to the EC, other alcohol drinks industry organisations in the UK and across Europe are raising objections to the policy with the Commission.

“The SWA’s complaint to the EC states that MUP breaches EU trade rules. It says that minimum pricing of alcohol would artificially distort trade in the alcoholic drinks market, contrary to EU law.

“The SWA is also concerned that other countries are likely to adopt measures similar to MUP and use a ‘protection of health’ justification to target imported products. Such ‘copycat’ measures could cost the Scotch Whisky industry £500 million in exports. This would damage the Scottish Government’s own ambitions for an exportled economic recovery. Scotch Whisky is vital to the economy, accounting for just under 80% of Scotland’s food and drink exports.

The SWA is also taking action through the Scottish Court of Session by applying for Judicial Review of the legislation on the grounds that the law on minimum pricing is in breach of the UK’s EU Treaty obligations and contrary to the terms of the Scotland Act 1998. The European Spirits Organisation (CEPS) and Comité Vins (CEEV), the European wine body, have joined the SWA in the legal action in the Court of Session.”

Alcohol industry goes down tobacco road

Responding to the SWA statement, Dr Evelyn Gillan, Chief Executive of Alcohol Focus Scotland, accused the SWA of following the same path as the tobacco industry “in seeking to delay vital legislation that will save lives.”

Dr Gillan said:

“Big alcohol’s claims that they are committed to working in partnership with Government and others to reduce alcohol-related harm must be seriously questioned by this move. This shows that, when effective policies that will reduce harm and save lives are introduced, the big producers simply close ranks and pool resources to prevent their implementation.

“Minimum pricing will bring significant health benefits so to contest this makes it clear that some sections of the alcohol industry are motivated by profit not public interest. Quite simply, this is big business putting profit before the health and well-being of the people of Scotland.”