Globalisation:Minimum Pricing and EU Law
Contents
Minimum Pricing and EU Law
Scotch Whisky Association and the Scottish Government
BBC News ran an article in October 2009 which claimed that the Scotch Whisky Association claimed the Government’s plans for alcohol minimum pricing were at risk. When attempting to impose a minimum price on tobacco the European Court ruled that three countries had breached competition rules. This cast doubt upon the legality of the Scottish Government plans to introduce a minimum price for alcohol. The Scottish Government responded saying that the tobacco and alcohol cases were not relevant to each other. Their justification was that setting a minimum price for health reasons was perfectly legal. However the Scotch Whisky Association Chief Executive, Gavin Hewitt said that this doubt is valid and that the Scottish Government cannot ignore it. He said that the Government have to realise how damaging this proposal is to Scottish jobs and that it has already been deemed illegal in Austria, Ireland and France, therefore they should give up the idea. Finally he said that the Scotch Whisky Association was willing to work with the Government in tackling alcohol abuse, however they opposed minimum pricing. The Scottish Government spokeswoman Nicola Sturgeon said that it is irrelevant to link tobacco minimum pricing to alcohol. She said that the legal problem with tobacco is to do with the excise duty on manufactured tobacco which has nothing to do with tobacco. Again she promoted the idea of minimum pricing and health and that the aim was to protect public health in Scotland. The labour party responded to this asking the Scottish Government to make the legal aspects of minimum pricing on alcohol clear. [1]
Irish Spirits Association and the EC
There are other companies who support the claim the minimum pricing is illegal. The Irish Spirits Association claimed that minimum pricing violates EU law and they prepared a case to take to the European court of justice. Two warnings were issued by the EC on the issue of alcohol minimum pricing. Vice President of the EC, Gunter Verheugen, said that if the plans put imported drink at a disadvantage then they would become illegal under Article 28, which supports the free movement of goods. EC lawyers supported this statement who claimed that if non-Scottish products are prevented from being supplied at a price lower than Scottish products, "the measure would violate ...EU internal market rules".[2]
Lovell's and SABMiller
The Times Online covered the story on the legal issues of minimum pricing also. Lovell’s, a legal firm renowned for its expertise in EU law, claimed that the effect of minimum pricing would be preventing alcoholic products imported from other EU member states having a competitive advantage against UK produced drinks. This firm added that this would cause a restriction of movement for goods, which relates to Article 28 and so minimum pricing would become illegal. SAB Miller, who own Coors light, Perroni Nastro and Azzuro and Miller Lite, commissioned an opinion, which said that the introduction of minimum pricing would create barriers to free movement which is contrary to European law. [3]
Notes
- ↑ BBC News “Court ruling on minimum pricing” (Accessed 19/04/2010)
- ↑ Scotland on Sunday “Minimum price plans fall foul of EU law” (Accessed 19/04/2010)
- ↑ Times Online “EU law may block SNP alcohol price plan” (Accessed 19/04/2010)
