Portfolio Question Time – in the Scottish Parliament at on 25 September 2024.
Clare Haughey
Scottish National Party
To ask the Scottish Government, as part of the development and delivery of its economic strategy, what assessment it has made of the contribution of the drinks sector to the economy. (S6O-03751)
Richard Lochhead
Scottish National Party
The drinks sector is vital to Scotland’s economy, generating a turnover of £6.3 billion per annum and directly employing around 13,000 people, and supporting thousands more jobs throughout the wider supply chain.
As a Government, we will continue to support the sector in the huge role that it plays in contributing to our priority to grow Scotland’s economy. We also welcome the sector’s willingness to innovate, particularly through the good work that it is doing around cutting emissions from production to help tackle the climate emergency.
Clare Haughey
Scottish National Party
I recently visited the Tennent’s facility in Cambuslang in my Constituency and I was delighted to learn of its plans to upgrade the distribution centre, ensuring jobs and careers on site for many years to come. Local production and the sourcing of products support thousands more jobs across the country, and international exports help to boost the Scottish economy.
Will the Minister consider meeting that staple Scottish brand to explore further how it can continue to support and grow the Scottish economy?
Richard Lochhead
Scottish National Party
I thank Clare Haughey for bringing that important investment to the chamber’s attention. It is a good news story; it is very good news for the Cambuslang area in particular, as well as for the country and the drinks sector as a whole.
As business Minister, I would be more than happy to meet the company, if Clare Haughey wishes to help to arrange that. I know that I speak for my colleagues when I say that they would be willing to meet the company, if that is more appropriate.
There are a number of good news stories in the drinks sector in Scotland. It is good to hear about the investment in the Tennent’s facility in Cambuslang.
Murdo Fraser
Conservative
I remind the chamber of my entry in the register of members’ interests in relation to hospitality that I received from the Scotch Whisky Association.
The Minister will recall that the Scottish Government previously consulted on draconian rules to restrict alcohol marketing, which caused a great deal of alarm among the drinks sector. We have not had an update recently from the Scottish Government on where matters stand in relation to that. Can he tell us now?
Richard Lochhead
Scottish National Party
A number of comments have been made about that. The Scottish Government is about to commission Public Health Scotland to carry out a review of the evidence on a range of options that is available to the Scottish Government under devolved powers. Once that is concluded, there will be further consultation. I will ensure that Parliament is kept up to date on that, as it has been up to now.
It is interesting that Murdo Fraser mentioned the Scotch Whisky Association, because one of the biggest concerns that it has expressed to me, and to the Government as a whole, is the rate of tax applied by the United Kingdom Government under his own party’s Administration over many years.
I noticed a tweet from the Scotch Whisky Association, in the past 24 hours, which stated:
“Spirits like #ScotchWhisky sold in the UK are subject to the highest rate of taxation in the G7, and double the average across Europe”
The UK tax is double the tax in France, five times that in Japan and three times that in Italy. That is a big issue for the Scotch whisky industry, if Murdo Fraser wishes to take that on board.
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