Scotch Whisky (Post-Brexit Customs Arrangements)

– in the Scottish Parliament at on 18 January 2018.

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Photo of Richard Lochhead Richard Lochhead Scottish National Party

4. To ask the First Minister what discussions the Scottish Government has had with the United Kingdom Government regarding concerns expressed by the Scotch whisky industry regarding the possible consequences of Brexit for customs arrangements. (S5F-01929)

Photo of Nicola Sturgeon Nicola Sturgeon Scottish National Party

The Scottish Government is in regular dialogue with the Scotch whisky industry. We are aware of its concerns regarding the introduction of a new computer system by Her Majesty’s Revenue and Customs for collecting duties and taxes for goods entering and leaving the UK. The industry believes that leaving the European Union will increase transactions fivefold. That is an extra burden on industry that is completely unnecessary. It is also one of the many reasons for our arguing that leaving the EU will significantly weaken our economy when compared with continued membership of the EU, and that the least damaging option is to remain in the single market. I hope that members from right across the chamber support that.

Photo of Richard Lochhead Richard Lochhead Scottish National Party

I am sure that the First Minister will be aware that 90 per cent of Scotch whisky is exported and that a third of such exports go to the EU, representing 10 per cent of all Scottish exports. Is the First Minister aware that, with the UK Government rushing headlong into a hard Brexit, the Scotch whisky industry is expressing increasing concern about the potential for confusion and chaos at customs posts, given that the industry needs plenty of notice of new arrangements, a smooth process and to avoid congestion and delay in getting its goods to market?

With the clock now ticking, will the First Minister continue to apply maximum pressure on the UK Government to recognise the importance of the Scotch whisky industry and Scottish food and drink generally? Similar concerns about the impact of Brexit have been expressed by Rotterdam port. Does she agree that that is a perfect example of why the Conservative Party’s political dogma and determination to leave the single market and customs union—[

Interruption

.]

The Presiding Officer:

Okay, Mr Lochhead. We get the point.

Photo of Richard Lochhead Richard Lochhead Scottish National Party

—are detrimental to Scotland’s national interests?

The First Minister:

I cannot believe that the Tories were groaning and moaning through a question about one of our most important industries. That speaks volumes.

As Richard Lochhead said, the whisky industry contributes hugely to Scottish exports. Its concerns provide a case study in the self-destructive futility of leaving the single market. It is not just the whisky industry that has such concerns; the food sector resilience group, which is chaired by the Scottish Government and brings together associations across the food and drink supply chain, as well as other public sector bodies, is meeting as we speak. It will discuss the impact of customs issues and the possible disruption at ports in England, which could have a really damaging effect on all of Scotland’s exporters. Those are the kind of concerns that drive our analysis that Brexit could hit our gross domestic product to the tune of up to £2,300 for every person in Scotland.

I do not want us to leave the EU at all, but if the UK Government is intent on that, we must stay within the single market. I remember when, not long after the EU referendum, Ruth Davidson challenged me in this chamber to make sure that we protected our place in the single market. Now she just meekly does as she is told. We will continue to stand up for Scotland’s interests.