Whisky producer clarifies job loss claims

Related tags Minimum pricing Scotland

A leading whisky producer has backtracked over claims that minimum pricing would result in hundreds of job losses. John Beard chief executive of...

A leading whisky producer has backtracked over claims that minimum pricing would result in hundreds of job losses.

John Beard chief executive of Bell's brand owner Whyte & Mackay has clarified claims made earlier this month that the introduction of a minimum price by the Scottish government would lead to the company shedding 300 jobs.

Giving evidence to the Scottish government in relation to the Scottish Alcohol Bill last week Beard said the figure of 300 was based on a 50p unit price being rolled out across the UK.

However in response to accusations by the committee of scaremongering Beard added that a 40p unit price in Scotland would not immediately lead to job losses north of the border.

He said: "Whyte & Mackay have identified the risk to Scottish jobs. There are two variables, the number of jobs which might be lost, and also the level of minimum pricing when it is introduced.

"Even though the 40p minimum figure would have little immediate effect, we estimate 83 jobs at Whyte and Mackay in Scotland are under threat over the longer term."

He explained the while the company expects the legislation to extend across the UK if introduced in Scotland it also believes it is illegal under EU law.

The committee said that introduction of minimum pricing could increase the price of a bottle of whisky by a third.

Meanwhile the Office of Fair Trading (OFT) said a minimum price could actually encourage retailers to sell more alcohol.

OFT head of advocacy Chris Jenkins: "We would highlight that creating additional profits for retailers in selling alcohol might give them more incentives to sell more alcohol.

"In an extreme case that might undermine the rationale behind the legislation."

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