Thursday 25 July 2013

Protectionism

It has emerged today that five of Europe's largest wine producers have lodged a legal challenge to the decision of the Scottish Government to introduce a minimum price for alcohol. Why? Have they even read the legislation?

An average bottle of wine from these countries contains about 9 units of alcohol.  The proposed 50p per unit minimum price would mean that a bottle of wine would cost upwards of £4.50. How different is that to the status quo?

I could understand such a stand if it were emanating from the producers of the high alcohol cheap cider so beloved of those in alcohol addiction. I don't hear them complaining. Yet. I've no doubt they will have something to say in due course.

This legislation is a step in the right direction and will draw a line under the era of cheap booze where it is possible to top up your blood alcohol level every day even on a modest income. How bad would that be? The long term cost of alcohol addiction is mind blowing and getting worse. The Scots should be applauded for pursuing this. They are also ahead of their counterparts in Westminster which will do Mr. Salmond no harm when they vote for independence.

The countries involved in this objection are France, Spain, Italy, Portugal and Bulgaria. Of these, only Bulgaria and Portugal consistently offer wine under the price referred to. In my experience, French wine is normally nearer to £10 per bottle than £5 so their protestations seem rather lame. The Spanish and Italian wines are not too far behind them so its difficult to see what all the fuss is about. Perhaps the recent growth of the UK wine producer is giving them cause for concern. I was always led to believe that the French tend to keep their best wine for themselves and send us the other stuff. Having been to France many times, I can only concur with this view!

Protecting one's own interest is admirable but only if your argument is a sold one. Aside from this, the average Scot is not synonymous with a glass of finest claret anyway so maybe they have got their markets confused.

No comments:

Post a Comment