Scottish government alcohol initiative suffers setback

The Scottish government's proposal to impose a minimum price per unit of alcohol looks set to fail as it does not comply with EU rules and is illegal under UK law, according to experts.

Plans to change the licensing law were scrutinised by the Law Society of Scotland who have judged that the right to impose price restrictions is a reserved power of Westminster since it concerns the sales of goods and not licensing.

Spokespersons for the society, said: “There is some doubt about whether these proposals can be dealt with under devolved legislation and further consideration is needed.

“For example limiting alcohol consumption by introducing minimum pricing could also breach the Scotland Act, depending on which legislation the proposals come under – licensing or the sale and supply of goods. Proposals to prevent retailers selling alcohol as a loss leader could breach competition law, which is reserved to Westminster.”

In addition, the Scotch Whisky Association advised the government that plans to regulate pricing are outlawed under Article 28 of the European Constitution treaty, which states that the restrictions on imported products are banned.

The trade association argued that fixed alcohol prices would affect foreign drink companies and be in breach of EU law.

Gavin Hewitt, chief executive of the Scotch Whisky Association, said: “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. Regrettably, minimum pricing achieves both and undermines our success in breaking down illegal discrimination against Scotch whisky around the world.”

Mr Hewitt questioned whether legislation was the answer to the the country's drinking problem: “We agree that attitudes to alcohol in Scotland need to change, but minimum pricing is not the answer.”

Alcohol Focus Scotland, a national charity for alcohol issues, unequivocally supports the minimum price per unit: “Is it too much to ask us to spend 11 pence more on a bottle of wine if that means a longer life for some, or a childhood recaptured, or a young person's future assured? Because that's exactly what it means.”

The charity states that six people each day die from alcohol related disease in Scotland and estimates that 65,000 children have their childhood "stolen from them and their future blighted because of someone's drinking".

Charity executives went onto criticise industry bosses for complaining about "lost revenue": “It is vital that we don't get distracted from tackling Scotland's alcohol problems. We all have a responsibility to turn our alcohol culture around and recognise that sometimes our health and social well-being comes before commercial interest.”

Vince Cable, Liberal Democrat deputy leader, expressed his support for minimum pricing south of the border saying that the debate shouldn't be trivialised and that the proposals were to encourage safe and sensible drinking not to penalise pub owners.