Support for the Scotch Whisky Industry
Debate between Daniel Zeichner and Wendy Chamberlain(1 week, 2 days ago)
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Daniel Zeichner
I will come to the Budget measures in a moment, but first I endorse my hon. Friend’s point about the number of jobs the industry supports—41,000 in Scotland and a further 25,000 across the rest of the UK, many in rural areas.
Collectively, whisky distilleries are now Scotland’s most visited tourist attraction, bringing in thousands of domestic and international tourists every year, largely to rural areas, and creating many opportunities for employment. Whisky is also a hugely important trade good. In 2023, the equivalent of 53 bottles of Scotch every second were sold overseas. That is important to delivering growth at home, which is why we are committed to supporting the Scotch whisky industry to export its fine products to overseas markets. We do that by leveraging free trade agreements and removing barriers to market access across the world. We are currently working on no fewer than 29 markets.
Wendy Chamberlain
It is important that we recognise, particularly when we look at the US, that exporting Scotch is not the only challenge. The Scotch whisky industry needs ex-bourbon casks to produce the whisky we all know and love. Does the Minister agree that the Government need to ensure that conversations with the US Administration take place? Otherwise, our supply will be impacted.
Daniel Zeichner
I am grateful to the hon. Lady. We are well aware of the importance of those casks to the industry and their value.
As well as working with Governments overseas to increase market access, we work closely with the industry at home to catalyse its ability to reach export potential. We offer a wide range of support for businesses that want to start exporting or to expand into new markets, as well as a compelling programme of trade shows and events to support Scotch whisky exporters to access new markets, build buyer connections and increase marketing in target countries. We also have a network of international trade advisers offering one-to-one support across England, and teams with embedded sector expertise in Scotland, Wales and Northern Ireland. Overseas, we have a network of trade advisers and international market teams supporting agriculture and food and drink businesses in more than 100 markets, supplemented by a network of 15 highly skilled agricultural attachés focusing on removing trade barriers in key markets. We are aware of the challenges faced by Scotch whisky in international markets and we work closely alongside their representatives.
Officials across Government are working on trade deals and breaking down export barriers to ensure that Scotch whisky is traded on a fair playing field and has opportunities to grow in new and expanding markets. An important part of that work is securing geographical indication status in major export markets, to add to Scotch whisky’s domestic protection. The status is a special form of protection that defends the iconic product from imitation and counterfeiting. Last August, the Government were pleased to announce our role in securing this form of protection in Brazil, a country which is in the top five global growth markets for alcohol, and is worth almost £900 million in Scottish exports.
In the Budget a firm commitment was made to support spirits producers by, among other measures, investing up to £5 million in the spirit drinks verification scheme, which will reduce the fees paid by businesses for verification of their use of the Scotch whisky geographical indication, and go towards upgrading the overall verification scheme the Government provide. The specifics on how the funding will be used to improve the service will soon be announced by His Majesty’s Revenue and Customs.
Oral Answers to Questions
Debate between Daniel Zeichner and Wendy Chamberlain(3 months, 1 week ago)
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Wendy Chamberlain (North East Fife) (LD)
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
The hon. Lady raises an important question. That is a delicate issue because it has been raised by the European Union, but we are absolutely determined to maintain our position.
Budget: Implications for Farming Communities
Debate between Daniel Zeichner and Wendy Chamberlain(3 months, 2 weeks ago)
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Daniel Zeichner
I can absolutely give my hon. Friend that assurance. As I said earlier, throughout the last five years in opposition, I was a consistent supporter of the agricultural transition, and I am determined to ensure that it is successful.
Wendy Chamberlain (North East Fife) (LD)
I am conscious of the need to use temperate words, but one of my constituents said to me that the Government had left farmers the choice between selling now in a managed way and leaving their farms to their heirs, who would be at the mercy of HMRC and the banks. Either way, family farms would fall.
The Minister has talked extensively today about the challenges of wealthy individuals coming in to buy up farmland. Do the Government accept that this measure will potentially increase that problem, and, if it is a problem, what additional legislative steps will they take?
Daniel Zeichner
No, I do not. For the reasons that I outlined earlier, I think that it will act as a disincentive for people to do that.