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European court says minimum alcohol pricing 'could break trade rules' European court says minimum alcohol pricing 'could break trade rules'
(about 1 hour later)
The Advocate General of the European Court of Justice has said plans for minimum alcohol pricing in Scotland risk infringing EU rules on free trade. Plans to introduce a minimum unit price for alcohol in Scotland risk infringing EU rules on free trade, according to an initial ruling by Europe's top court.
Yves Bot said minimum pricing would only be legal if it could be shown that no other mechanism - such as increasing taxes - was capable of delivering the desired public health benefits. The European Court of Justice (ECJ) said it would only be legal if it could be shown no other mechanism - such as raising taxes - could deliver the desired public health benefits.
The Scottish Whisky Association had challenged the proposals. In 2012, MSPs passed legislation which set a minimum unit price of 50p.
The court will now deliberate before delivering its final judgement. But the Scottish Whisky Association (SWA) challenged the proposals.
That process could take up to six months. It argued that the legislation acted as a barrier to trade.
Legislation to bring in a minimum unit price of 50p was passed by the Scottish Parliament in May 2012.
However, the Scotch Whisky Association (SWA), which argued it breached European law.
The legal bid was initially rejected by judge Lord Doherty at the Court of Session in Edinburgh in 2013.The legal bid was initially rejected by judge Lord Doherty at the Court of Session in Edinburgh in 2013.
But following an appeal hearing, the case was referred to the European court in Luxembourg for its opinion last year. What's happening in Scotland? Keep in touch through our live page.
The opinion was delivered by the court's advocate general. But following an appeal hearing, the case was referred to the European court in Luxembourg last year.
In most cases an opinion is in line with a final European Court judgement. Court opinion
In an Opinion released on Thursday, the court's advocate general Yves Bot said a minimum unit pricing (MUP) system risked infringing the principle of the free movement of goods and would only be legal if it could be shown that no other mechanism was capable of achieving the desired result of protecting public health.
He stated that "a Member State can choose rules imposing a minimum retail price of alcoholic beverages, which restricts trade within the European Union and distorts competition, rather than increased taxation of those products, only on condition that it shows that the measure chosen presents additional advantages or fewer disadvantages by comparison with the alternative measure".
The Scottish government, which has argued that minimum pricing is vital to address Scotland's "unhealthy relationship with drink", has been unable to implement the policy while the legal process is ongoing.The Scottish government, which has argued that minimum pricing is vital to address Scotland's "unhealthy relationship with drink", has been unable to implement the policy while the legal process is ongoing.
The SWA's legal bid has been backed by other European wine and spirits producers. It is understood that ministers regard the European court's preliminary ruling as "better than expected" as it "does not preclude" minimum pricing.
The industry body has described the legislation, which is supported by health professionals and the police, as "un-targeted, misguided and illegal", and argues that it acts as a barrier to trade. The Scotch Whisky Association welcomed the advocate general's opinion.
Chief executive David Frost said: "The opinion encourages us in our long-held view that MUP is illegal when there are less trade-restrictive measures available.
"We await the Court of Justice's final ruling."
The European court is expected to take up to six months to issue its final ruling, before the case is referred back to the Court of Session in Edinburgh.
'Hazardous drinking''Hazardous drinking'
The case will be referred back to the Court of Session for a final decision.
Linda Bauld, Professor of Health Policy at Stirling University's Institute for Social Marketing, said raising the price of alcohol in Scotland would save lives.Linda Bauld, Professor of Health Policy at Stirling University's Institute for Social Marketing, said raising the price of alcohol in Scotland would save lives.
Professor Bauld told BBC Radio Scotland's Good Morning Scotland programme: "The reason the Scottish Parliament passed this measure is that there is strong and clear evidence that increased price reduces both hazardous drinking and alcohol problems.Professor Bauld told BBC Radio Scotland's Good Morning Scotland programme: "The reason the Scottish Parliament passed this measure is that there is strong and clear evidence that increased price reduces both hazardous drinking and alcohol problems.
"It is really unfortunate that we have had this delay because of this legal case."It is really unfortunate that we have had this delay because of this legal case.
"We know that since minimum pricing was passed in the Scottish Parliament, around 2,500 Scots have died because of alcohol. If we could raise the minimum price, we know we could save some lives and also the other harm caused by alcohol in Scotland.""We know that since minimum pricing was passed in the Scottish Parliament, around 2,500 Scots have died because of alcohol. If we could raise the minimum price, we know we could save some lives and also the other harm caused by alcohol in Scotland."
Former Conservative MEP Struan Stevenson said he was concerned about what the introduction of a minimum price for alcohol would do to Scotland's trade position.Former Conservative MEP Struan Stevenson said he was concerned about what the introduction of a minimum price for alcohol would do to Scotland's trade position.
He told Good Morning Scotland: "I think it would drive a cart and horse through the internal market rules in the EU and would also have a detrimental impact on external trade.He told Good Morning Scotland: "I think it would drive a cart and horse through the internal market rules in the EU and would also have a detrimental impact on external trade.
"If you consider there is a ban on price fixing within the internal market on the freedom of movement of goods, and if you also take into account we are trying in the last stages to negotiate a free trade agreement with India, they apply a 150% tariff on Scots whisky."If you consider there is a ban on price fixing within the internal market on the freedom of movement of goods, and if you also take into account we are trying in the last stages to negotiate a free trade agreement with India, they apply a 150% tariff on Scots whisky.
"If we suddenly say we are putting up the minimum price of alcohol on health grounds, it undermines our whole negotiating position.""If we suddenly say we are putting up the minimum price of alcohol on health grounds, it undermines our whole negotiating position."