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Blow for minimum pricing plans

Published:  04 March, 2010

Plans to introduce minimum pricing on alcohol in Scotland suffered a setback after the European Court of Justice ruled that similar measures on tobacco were illegal.

Plans to introduce minimum pricing on alcohol in Scotland suffered a setback after the European Court of Justice ruled that similar measures on tobacco were illegal.

The court ruled minimum pricing schemes in Austria, France and Ireland were illegal and "undermined the freedom of manufacturers and importers to determine the maximum retail selling prices of their products and, correspondingly, free competition".

The Scotch Whisky Association (SWA) called on the Scottish government to withdraw its minimum pricing proposal from the Alcohol Bill and work with all parties to address alcohol harm.

Gavin Hewitt, chief executive of the SWA, said: "Today's ruling is a major development, confirming our contention that minimum pricing breaches EU law and unfairly distorts competition.
"Given this latest evidence, the Scottish government must now recognise the legal realities. It cannot introduce a trade barrier in breach of the UK's European obligations by imposing minimum pricing on alcohol in Scotland.

"The court has also said that measures to prevent sales at a loss are acceptable. The SWA has said repeatedly that we are ready to work with the Scottish government on just such a legal, alternative and transparent mechanism to address alcohol harm.

"We would urge the Scottish government to withdraw minimum pricing from the Alcohol Bill and hope that a consensus can now be reached on tackling loss leading sales of alcohol."

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