Difference between revisions of "Globalisation:Minimum Pricing and EU Law"

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==Minimum Pricing and EU Law==
  
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===Scotch Whisky Association and the Scottish Government===
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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.
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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. <ref> BBC News “[http://news.bbc.co.uk/1/hi/scotland/8321546.stm: Court ruling on minimum pricing]” (Accessed 19/04/2010) </ref>
  
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==THE MINIMUM PRICING DEBATE==
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===Irish Spirits Association and the EC===
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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".<ref> Scotland on Sunday “[http://scotlandonsunday.scotsman.com/uk/Minimum-price-plan-falls-foul.5473075.jp: Minimum price plans fall foul of EU law]” (Accessed 19/04/2010) </ref>
  
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===JUST DRINKS===
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===Lovell's and SABMiller===
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Alcohol and it’s consumption have become art of the forefront of political debate. There have been plans for cutting binge drinking and alcohol fuelled anti-social behaviour, which can cost the UK millions of pounds each year. The ‘Just Drinks’ website published an article called ‘UK: Mixing alcohol and politics,’ which stated that it is most likely that any political party will introduce duties on alcohol, the question is whether they will introduce duties onto all alcoholic drinks or just onto certain categories. The article found that 23% of people thought labour were most likely to put alcohol prices up the most compared to the conservatives who received 20% of the votes. The conservatives have suggested targeting specific categories of drinks for minimum pricing such as super strength beer and cider. The argument against this says that this is too small a category therefore it will not make a significant enough impact to alcohol abuse. Labour have not been so forthcoming with their view on this as they say that they do not want to rule out minimum pricing however  Home Secretary Alan Johnson says that they do not want to penalise responsible drinkers on low incomes. The Wilson Drinks Report suggests that minimum pricing may not actually work as it is intended because 21% of drinkers would purchase less alcohol if prices were increased by 25%. Over 50% of drinkers would either just pay more for alcohol or choose a cheaper option. The question which the article previously mentioned arises is whether minimum pricing can realistically tackle the problems of alcohol abuse in Britain. <ref>Just Drinks.com "[http://www.just-drinks.com/article.aspx?id=99692&lk=dmf Research: UK: Mixing Alcohol and Politics]" (Accessed 16/03/2010) </ref>
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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. <ref> Times Online “[http://www.timesonline.co.uk/tol/global/article5897550.ece: EU law may block SNP alcohol price plan]” (Accessed 19/04/2010) </ref>
  
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==Notes==
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==WHO SUPPORTS MINIMUM PRICING?==
 
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===TENNANTS===
 
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Recently one of the big companies to support the minimum pricing strategy has been Tennants. They claim that it will be part of a solution to the UK’s problems with binge drinking. This suggestion supports the SNP’s plan for minimum alcohol pricing. However, some critics have said that Tennants only support this because they would benefit financially from it. Tennants is the first major drinks company to support minimum pricing with others claiming that it will penalise the majority of Scots drinkers who are sensible. Tennants do say that minimum pricing alone will not solve Scotland’s problems, however it is a start especially if the prices of strong strength products are affected. An example of a change in pricing would be a four pack of Tennants super lager would increase from £5.28 to £6.33 in Asda. Nicola Strugeon, the Scottish Health Minister supports Tennants saying that other producers should not fear joining them in support of minimum pricing. She said that companies should ‘do the right thing for the good of Scotland’s health.’ One Scottish labour spokesman made a valid point that if minimum pricing is enforced then the extra profit should go to alcohol treatment and not companies like Asda, Tesco or Tennants. There is a lot of support for this idea from the UK’s four Chief Medical Officers, the British Medical Association and the Royal Colleges. It seems as though it is inevitable that with this much support it will go ahead. <ref>Telegraph.co.uk"[http://www.telegraph.co.uk/news/newstopics/politics/scotland/7080164/Tennants-backs-minimum-alcohol-pricing.html: Tennants Backs Minimum Alcohol Pricing]” (Accessed 30/03/2010)</ref>
 
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===SCHOOLS===
 
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The Daily Record ran an article in January 2010 which detailed the problems which schools were experiencing with alcohol and drug problems regarding their pupils. They claimed that in 2009 more than 500 pupils were thrown out of class as a result of drink and drug incidents. Drugs however does seem to be a more prevalent problem. North Lanarkshire had the highest number of exclusions for alcohol related incidents with 24 pupils being excluded. Teachers and parents reacted by seeking tougher action from the Scottish Government. There have already been some initiatives put in place for tackling this problem such as a Positive Behaviour Team that promote improving pupil behaviour. There is also the Choices for Life Programme which involves the Scottish Drug Enforcement Agency. A spokesman for the Education Secretary Mike Russell said that minimum pricing would help to deter alcohol misuse among the minority of pupils because the cheapest alcohol would increase in price. <ref> Daily Record.co.uk  “[http://www.dailyrecord.co.uk/news/health-news/2010/01/24/exclusive-500-kids-kicked-out-of-school-each-year-over-drink-and-drugs-86908-21991748/: 500 kids kicked out of school each year over drink and drugs]” (Accessed 30/03/2010)</ref>
 
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==NOTES==
 
 
<References/>
 
<References/>

Latest revision as of 15:07, 22 April 2010

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

  1. ↑ BBC News “Court ruling on minimum pricing” (Accessed 19/04/2010)
  2. ↑ Scotland on Sunday “Minimum price plans fall foul of EU law” (Accessed 19/04/2010)
  3. ↑ Times Online “EU law may block SNP alcohol price plan” (Accessed 19/04/2010)
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