Ministers and officials have been warned against pushing for minimum pricing of alcohol — by the Government department responsible for business, writes John Harrington.
The message comes in guidance from the Department for Business, Enterprise & Regulatory Reform (BERR).
The six-page guide says Government officials should “avoid putting pressure on businesses to behave in a way that would result in the business being in breach of competition law”.
Although minimum pricing of alcohol is not mentioned specifically, the guide says some firms “have shown concern” over “pressure” applied to enter “voluntary agreements... to deliver public policy outcomes”. Public health policy is one example given.
BERR says ministers risk damaging their reputations if their moves to set uncompetitive practices are overturned on European competition law grounds.
Minimum pricing is high on the Government’s agenda, with Department of Health and Home Office ministers eying the prospect primarily as a way to reduce deep discounting in supermarkets.
An interim report commissioned by the Government into the link between alcohol price and harm, released last week, says there’s “low quality but demonstrable specific evidence” that minimum pricing “might be effective” as a “targeted health policy”.
The guidance from BERR is being flagged up by National Pubwatch as a warning to pubs and clubs not to run minimum pricing schemes.
“These sorts of agreements are against the law and must be avoided as they carry extreme financial penalties,” National Pubwatch’s website warns.
