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Industry warning over cut-price alcohol crackdown

CAROLYN CHURCHILL - The Herald March 03 2009

CALLING TIME: Offers such as the above buy one, get one free promotion will be banned under the proposed changes, as well as the sale of alcohol as a loss leader. <br>Pic: Julie Howden
CALLING TIME: Offers such as the above buy one, get one free promotion will be banned under the proposed changes, as well as the sale of alcohol as a loss leader.
Pic: Julie Howden

Scottish Government plans to introduce a minimum price for alcohol and ban cut-price offers will penalise retailers who are already struggling in the recession and put families' budgets under even more strain, it was claimed yesterday.

The drinks industry and small-business leaders said the package of measures announced by Health Secretary Nicola Sturgeon and Justice Secretary Kenny MacAskill would "punish" consumers and "the innocent shopkeeper".

The proposals include a ban on promotions that encourage bulk-buying, such as "three for two" deals, the introduction of a social responsibility fee for some retailers, and moves to restrict the display and marketing of drink to specific areas within off-sales premises.

Plans to raise the minimum age for buying alcohol in off-sales to 21 were dropped after the majority of people responding to the government's consultation said they opposed the proposal, but ministers will now give licensing boards the authority to consider imposing the age limit in their areas.

The minimum pricing proposal, which ministers hope to have in force by the end of the year, drew the heaviest criticism, with the Scottish Whisky Association warning the move could breach international trade laws.

The government has yet to decide on the level of pricing involved, but pointed to a study from Sheffield University which showed that setting a price of 40p per unit could result in a standard bottle of whisky costing at least £11.20, and cause overall consumption to fall by 2.6%.

Gavin Hewitt, chief executive of the Scotch Whisky Association, said: "It is hard to believe any Scottish Government would bring forward proposals that are likely to be both illegal in international trade law and risk damaging the whisky industry."

While health experts welcomed the range of measures, Andy Willox, Scottish policy convener of the Federation of Small Businesses, said the measures risked forcing more retailers "to pull down the shutters and leave the communities they have served, in some cases for generations".

Launching Changing Scotland's Relationship With Alcohol: A Framework for Action at Glasgow Royal Infirmary yesterday, Ms Sturgeon said that alcohol problems cost the equivalent of £500 every year for every adult in Scotland and minimum pricing was designed to combat "pocket money" prices.

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