Allan Wilson MSP
Cunninghame North

Speeches - 2005

 

 

Speeches to the Scottish Parliament in 2005
As Deputy Minister for Enterprise and Lifelong Learning

 

Scotch Whisky (Protected Geographical Indicator) - Speech in the Debate on Motion S2M-2650 on Protected
Geographical Indicator Status For Scottish Whisky -
21st April 2005

 

Scotch Whisky (Protected Geographical Indicator)
A debate on motion S2M-2650, in the name of Mr Andrew Arbuckle, on protected geographical indicator status for Scottish whisky.

The Deputy Presiding Officer (Trish Godman): The final item of business today is a members' business debate on motion S2M-2650, in the name of Mr Andrew Arbuckle, on protected geographical indicator status for Scottish whisky. The debate will be concluded without any question being put.

Motion debated:
That the Parliament believes that EU Protected Geographical Indicator (PGI) status for Scotch whisky would provide a further selling point for the end product; welcomes the fact that this would require the use of Scottish-only grain in the manufacture of Scotch whisky; believes that the industry should apply for PGI status to help ensure the long-term sustainability of Scottish cereal growing, and considers that any such application should be supported by the Scottish Executive.

The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson): I join colleagues in congratulating Andrew Arbuckle on securing the debate. I understand that he is relatively new to the chamber, but in the six years or so that I have been here, I cannot recall a motion that has met with such universal opposition. That is borne out of a belief that supporting the motion would do harm to an industry whose worth to the economy and employment in Scotland cannot be overstated, as Jim Mather, Jackie Baillie, Murdo Fraser and others said.

The motion calls for the industry to seek protected geographical indication status, which would require the use of Scottish-only grain in the manufacture of Scotch whisky. I know that the Scotch Whisky Association has already explained to Andrew Arbuckle — he referred to it himself — the legal position and the consequences of pursuing PGI status and using Scottish-only grain, but perhaps, as other members have done, we should reiterate some of the negative consequences of going down such a route.

Before I do so, let me make one thing clear: Scotch whisky already has extensive legal protection. Indeed, the Scotch Whisky Association, one of the UK's most successful trade associations, employs a team of lawyers whose sole remit is to protect Scotch whisky at European and international level.

I know that MSPs have been issued with the SWA brief, so I will comment only under headings. Scotch whisky is already protected because, as Murdo Fraser and others said, spirit drinks have a higher level of protection under regulations than other foodstuffs.

Scotch whisky has been recognised as a protected geographical designation in European Union law for more than 15 years. PGI status for Scotch would not be legally competent and indeed would dilute existing protection.
Like Murdo Fraser, as someone who can declare a personal interest in the product, I would not want the product or its status to be diluted in any way.

I met the Scotch Whisky Association a few weeks ago to hear about the different issues affecting the Scotch whisky industry. During our meeting, one of the main messages that came across from Gavin Hewitt, the association's chief executive, was how much of a top priority the legal protection of Scotch whisky is for the association and its members. Indeed, I have referred to the association's already considerable success in achieving legal protection for Scotch whisky around the globe. That is something that the Parliament should applaud, and we should refrain from doing anything that might affect that work.

Like other members, I fully appreciate and commend the intent of Andrew Arbuckle's proposal. I can see how a new requirement that only Scottish cereals should be used in the production of Scotch whisky might appear at least superficially attractive, as Jackie Baillie said. It might appear to provide potential benefits to the arable sector, and I can see exactly where Andrew Arbuckle is coming from, but such a requirement could be damaging, as other members have said. I believe that it would place industry sustainability at the mercy of the Scottish weather — I think we can all agree how unpredictable that is and, goodness knows, climate change will not assist in any way.

There is another issue, and it is not about the weather but about quality. The agricultural community should take heed. In order to maintain Scotch whisky's enviable position as a leading global quality product, the industry has exacting standards for all cereals that it uses. The Scotch whisky industry is on record as saying that it will source as much of the grain as possible from Scotland, but it cannot and should not be required to source grain irrespective of its quality. In good and average harvest conditions, there is little difficulty in sourcing a substantial proportion of the grain that the industry needs from Scottish producers, as Andrew Arbuckle will know. I am informed that some £90 million is spent each year by Scotch whisky producers on Scottish cereals, with more than 90 per cent of barley requirements being sourced in Scotland.

Mr Arbuckle: First of all, let me pick up on the statement that I have gained universal opposition. With fewer than 10 members here, "universal" is overstating it.

The minister mentioned the wet weather. Most of the contributions on wet weather have come from west-coast politicians. I invite them to come over to the arable east, where it does not rain and we have never, ever had a crop failure. I ask the minister to tell me of a year when the Scottish barley crop failed.

Allan Wilson: Andrew Arbuckle himself said that he is not a seer, and I am not a seer. I referred to a hypothetical situation, as other members did. The questions should be asked of Andrew Arbuckle, who proposed the motion, rather than of me. It has to be said that, speaking as a west-coast politician, I would not want to put all my eggs in the Scottish weather basket, with all due respect to the mysterious east. I am sure that the member would agree that in poor harvest years there could be problems with the quantity — he might dispute that — and quality of Scottish grain. To secure the consistent level of production that would be required, the Scotch whisky industry would be forced to source grain from elsewhere.

Also, as Jackie Baillie said, we must remember that not only barley is used in Scotch whisky. Other cereals are used in blended whisky, which accounts for 90 per cent of all global sales.

I believe — and I support the industry on this point—that producers must retain the flexibility to source enough raw materials of the right quality to meet the market demand. To put a ban on the use of non-Scottish cereals, which is what Andrew Arbuckle is asking for, would risk the sustainability of the industry. Everyone knows the contribution that the industry makes to the Scottish economy and to creating employment, and I know that he would not dispute that. Without being unkind, I think that his proposal would give the industry's competitors — of which there are many — an unfair advantage in the marketplace. We have already heard references to the French brandy industry.

The Scottish Executive and Scottish Parliament, across all parties, have always worked closely with the Scotch whisky industry. My comment on the motion's unpopularity related not only to the fact that not many members are present for the debate but to the cross-party consensus against Andrew Arbuckle's proposal that I think exists.

We will continue to work with the industry and listen to its concerns, even on issues that are, as Murdo Fraser said, reserved to the United Kingdom Government, such as stamps. Indeed, we stood up for the Scotch whisky industry in that context and were influential. We did so because of the industry's importance to the economy and employment in Scotland.

Jim Mather raised a number of important issues. As further evidence of their importance, I confirm that when I met the SWA recently, I did so in part to discuss a review of the whisky framework document, "A Toast to the Future: working together for Scotch Whisky". With the SWA, we will launch a new framework document in the next few months, which will pick up the points that were made about marketing, support, international competition and other such matters. That approach will help to provide a better path forward for the industry and to protect its important contribution to the economy and employment. Unfortunately, the proposal in Andrew Arbuckle's motion would not do that.

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