SNP slams Treasury targeting of whisky - "Gordon Brown attacks key Scottish employer"
The Scottish National Party (SNP) has criticised Treasury plans in the pre-budget report to hit the whisky industry which could add hundreds of millions of pounds of cost overheads and endanger jobs.
Chancellor Gordon Brown announced the possible introduction of strip-stamps in the House of Commons this afternoon (Wednesday), a move which was ditched less than two years ago by the Treasury.
Moray SNP MP Angus Robertson, warned that the Treasury plans would mean that whisky producers could face an annual bill of up to 280m pounds which is equivalent to more than a tenth of the industry's yearly sales and could even put some smaller distillers out of business.
Mr Robertson's constituency contains more than 50% of the Scotch malt whisky industry and he serves as the Vice-Chairman of the Scotch Whisky All Party Parliamentary Group. Speaking after the announcement Mr Robertson said:
"Treasury plans to introduce this daft and expensive scheme were successfully fought off recently with cross-party opposition and a high profile campaign by the Scotch Whisky Association (SWA).
"Any initial outlay for companies to buy the necessary application machinery will run into millions of pounds. The stamps would also have to be paid for up front, presenting a security and cash flow nightmare for all concerned. The cost to the industry could drive some small producers out of business.
"Sadly the London government continues to treat this key Scottish employer as a cash cow and is not even prepared to cut duty and end taxation discrimination.
"Anti fraud measures are important and the Scotch Whisky Association has been discussing options with the Treasury for nearly two years.
"Not too long ago the Department of Trade and Industry (DTI) wrote to the Norwegian Government when it was considering a similar scheme to warn that it was "likely to be inefficient and ineffective as a means of combating fraud and illicit trade".
"Bearing both these facts in mind the Treasury should stop targeting the Scotch whisky industry, should reach an agreement on anti-fraud measures with the SWA which does not add massive overheads and should cut duty instead of maintaining unfair rates of tax."
