The European Commission has sent a nine-page legal opinion to the British Government warning that minimum prices are illegal – and that the Treasury should increase duty on alcoholic drinks if it wishes to raise the price, according to the Daily Telegraph.
The newspaper said it had seen a leaked note sent to the British Government in response to Scottish plans to set a minimum price of alcohol. The legal opinion states that setting a minimum price is illegal under laws governing the free movement of goods.
It said that 13 European countries, including major wine producers such as France and Italy, are understood to be preparing to take the British government to court to stop the imposition of a minimum price.
Responding to plans in Scotland to introduce a 50p minimum price, the EC said minimum pricing could restrict imports of foreign alcohol and put international producers at a competitive disadvantage in Scotland.
It called minimum pricing a “disproportionate” response to concern in Scotland over health issues.
The unveiling of the proposal for a 45p minimum price per unit for alcohol brought a mixed reaction from the industry.
Greene King chief executive Rooney Anand welcomed the move. He said: “We strongly welcome the Government’s intention to introduce a minimum unit price for alcohol, which is an important step in helping to address the UK’s long- term problems associated with binge drinking and alcohol-related social disorder.
“We also welcome the news that a broader consultation on associated measures will commence. We would like to see the outcome of the consultation set a minimum unit price at 50p per unit, as it could significantly increase the number of lives saved per year and avoid any issues associated with cross-border shopping between England and Scotland.”
Wine and Spirits Trade Association (WSTA) chief executive Miles Beale said: “It is hard to understand why the Government is pushing ahead with the consultation now, when there is a wall of opposition in Europe, a legal challenge in Scotland, a lack of any real evidence to support minimum unit pricing, opposition from consumers and concerns raised from within Cabinet itself.
“Minimum unit pricing and the proposed restrictions to promotions are wholly untargeted and will unfairly punish millions of consumers and businesses in the UK, while doing nothing to tackle the root causes of alcohol misuse or associated crime and disorder.
“Minimum unit pricing will punish responsible consumers with higher prices, hitting the poorest hardest and will do nothing to address the causes of alcohol misuse.
“There is no evidence that minimum unit pricing will tackle alcohol misuse – in fact the international evidence suggests that problem drinkers are the least likely to be deterred by price rises.
“[On promotions] there is no compelling evidence linking retailer promotions with alcohol misuse – indeed overall levels of alcohol consumption are falling. The most recent evaluation of the ‘multi-buy’ ban in Scotland showed that it has had no significant impact on alcohol sales. This raises serious doubts about the effectiveness of a promotions ban in reducing alcohol misuse."
