This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/scotland/8558421.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Drink price plan 'will cost jobs' Apology over drink price claims
(1 day later)
One of the world's leading Scotch whisky suppliers has warned it might have to cut hundreds of Scottish jobs, under plans for minimum drink pricing. Leading whisky supplier Whyte & Mackay has said it is sorry if it misled anyone over the case it made against minimum drink pricing.
Whyte & Mackay said the government- proposed move would force it to compete with more expensive, premium brands. Giving evidence on Scottish government plans to bring in the policy, the company claimed it might have to cut 300 jobs if the move was implemented.
The Asda, Morrisons and Sainsbury's supermarket chains have also expressed concern about the plan. White & Mackay later clarified that the scenario was based on a UK-wide introduction of minimum pricing.
Scottish ministers have said radical action was needed to tackle the nation's alcohol problems. Health Secretary Nicola Sturgeon said the comments were "disingenuous".
The SNP has brought forward minimum pricing, along with a series of other measures, in its Alcohol Bill, but the minority government's plan is likely to be blocked by opposition parties. The Scottish government has brought forward minimum pricing, along with a series of other measures, in its Alcohol Bill, but the minority government's plan is likely to be blocked by opposition parties.
It will not discourage problem drinkers but punish the responsible majority Sainsbury's Brian TaylorPolitical editor Clarification re the jobs point, which emerged after the committee hearing.
John Beard, chief executive of Glasgow-based Whyte & Mackay, which supplies "own brand" and branded Scotch whisky to supermarkets, said he shared the government's concern about alcohol abuse. It now appears the assertion by Whyte and Mackay re job losses is based upon an assessment of what might happen if minimum pricing were to be introduced across the UK.
But, in a submission to Holyrood's health committee, which is scrutinising the bill, Mr Beard said minimum pricing would "decimate the own label market", warning: "This will lead to significant job losses at Whyte & Mackay, across our distilleries, our bottling plant and our distribution centres." But, of course, the proposal is presently being advanced by the Scottish government. For Scotland only.
Ministers have yet to set the minimum price per unit of alcohol under the plans, but Mr Beard said that, based on an example of 50 pence, a bottle of own label whisky would rise by 37%, to £14. class="" href="http://www.bbc.co.uk/blogs/thereporters/briantaylor/2010/03/the_cost_of_drink.html">Read Brian Taylor's blog
He said that would mean own label products losing their "competitive advantage" and having to compete with brands such as Famous Grouse and Bell's Whisky. In a submission to the Scottish Parliament health committee, Whyte & Mackay, which supplies own brand and branded Scotch whisky to supermarkets, said the introduction of a minimum price per unit of alcohol could result in the closure of its Grangemouth bottling plant, which employs 200 people, while an estimated further 100 distillery jobs would be put at risk.
'Imposed costs' It later clarified that the assessment, which would see a bottle of own label whisky rise in price by 37% to £14, was based on a minimum price of 50 pence per unit being introduced across the UK rather than just in Scotland.
"We anticipate that our bottling plant in Grangemouth, which employs 200 people, would close," said Mr Beard, adding: "Our production levels would also be affected so there would be a knock-on effect at our distilleries - our best estimate is that another 100 jobs would be at risk." Ms Sturgeon said: "I think Whyte & Mackay have been rather disingenuous with this evidence - it's based on a 50 pence per unit minimum price across the whole of the UK and clearly our proposals apply only to Scotland.
And, in a warning to ministers, the Whyte & Mackay chief said: "If we were to lose that many jobs, and lose that significant profit, there is no way Whyte & Mackay could continue working with government to fund and promote responsible drinking initiatives." "The Whyte & Mackay document looks at a 50p per unit minimum price of alcohol, when at every stage the Scottish government have illustrated the positive impact of minimum pricing on the basis of 40p, which would result in a minimum price for a bottle of whisky of £11.20 - not £14 - and well below the existing price of the vast majority of whisky products."
Also in a submission to the committee, the UK's second largest supermarket, Asda, welcomed action on alcohol abuse, but said the debate had become too focussed on pricing. Speaking for Whyte & Mackay, the company's Rob Bruce told BBC Radio's Scotland at Ten programme the company was committed to tackling alcohol abuse, and insisted there had been no intention of "pulling the wool over anybody's eyes".
Approach 'unfair'
"We've made it clear that we've had to make a range of assumptions to come to the figure that we've come to and those assumptions include a potential - a very real potential - for minimum pricing to be implemented UK-wide," he said.
Mr Bruce added: "Certainly from the point of view of communicating the job numbers, we certainly didn't set out to mislead anybody - if that is the case I can only apologise."
However, Whyte & Mackay still insisted that minimum pricing - the level of which has still to be decided by ministers - would result in own label products losing their "competitive advantage" due to having to compete with premium brands, such as Famous Grouse and Bell's Whisky.
Meanwhile, several major supermarket chains also expressed concern about minimum pricing to Holyrood's health committee.
The UK's second largest supermarket, Asda, said a survey of 10,109 Asda shoppers in 30 Scottish stores indicated 61% of respondents disagreed with minimum pricing.
Ministers said their plans would cut alcohol abuseMinisters said their plans would cut alcohol abuse
The company said that, out of a survey of 10,109 Asda shoppers in 30 Scottish stores, 61% of respondents disagreed with minimum pricing.
Morrisons corporate affairs director Richard Taylor said minimum pricing may have little or no effect, adding: "The only certainty that minimum pricing would bring is imposed higher costs to customers. This is neither proportionate nor fair."Morrisons corporate affairs director Richard Taylor said minimum pricing may have little or no effect, adding: "The only certainty that minimum pricing would bring is imposed higher costs to customers. This is neither proportionate nor fair."
And Sainsbury's said higher alcohol pricing would simply hit people on fixed incomes. And Sainsbury's said higher alcohol pricing would simply hit people on fixed incomes, adding: "A whole population approach is unfair. It will not discourage problem drinkers but punish the responsible majority."
"We do not believe that minimum pricing will do what it is intended to - reduce problem drinking," said the chain.
"A whole population approach is unfair. It will not discourage problem drinkers but punish the responsible majority."
The Scottish government said a minimum-pricing policy - which has been backed by all four UK Chief Medical Officers, other health experts and the police and licensed trade - would reduce alcohol consumption and save lives.The Scottish government said a minimum-pricing policy - which has been backed by all four UK Chief Medical Officers, other health experts and the police and licensed trade - would reduce alcohol consumption and save lives.
The Alcohol Bill also includes proposals to ban drink promotions, powers for licensing boards to raise age for buying drink from 18 to 21 and a "social responsibility fee" for retailers who sell alcohol.The Alcohol Bill also includes proposals to ban drink promotions, powers for licensing boards to raise age for buying drink from 18 to 21 and a "social responsibility fee" for retailers who sell alcohol.
In January, one of Scotland's biggest alcohol brands - Tennent's - said it would back the minimum price plan.In January, one of Scotland's biggest alcohol brands - Tennent's - said it would back the minimum price plan.