Peter Bone
Main Page: Peter Bone (Independent - Wellingborough)Department Debates - View all Peter Bone's debates with the HM Treasury
(7 years ago)
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David Linden (Glasgow East) (SNP)
There is an impact on the urban economy, as well as on the rural economy. Dewar’s whisky is produced on London Road in Glasgow. I do not know whether the right hon. Gentleman has had the pleasure of drinking it; I am more than happy to share it. His point about the wider supply chain is important. Having visited the bottling plant, I know the impact on Carntyne Transport, which provides many jobs in my constituency.
Mr Peter Bone (in the Chair)
Order. It is always good to have props—but it is wholly unallowed.
Mr Carmichael
I anticipated that that might be your reaction, Mr Bone. I thank the hon. Member for Glasgow East (David Linden) for his intervention—he made a good point—and for his offer, but even by my standards it is a little early at the moment.
As I have said, many of the most economically fragile communities are sustained by the whisky industry and many are flourishing as a consequence of its recent growth. In recent weeks there has been welcome news from Diageo that it will reopen Port Ellen and Brora. That is part of a continuing pattern that has emerged over years. The Highland Park distillery in my constituency has been going from strength to strength for years. It also has a smaller cousin in Scapa, which has emerged not from mothballs—it does not like that term, for obvious reasons—but from a quiet period and grown such that production is now in the region of 1.1 million litres a year. There were three full-time jobs in production, and that number has now gone up to five. It has also expanded into a visitor centre and shop. That all brings money and employment into the community and allows it to stay there. That is a fairly modest but significant increase, and its replication in communities across the highlands and islands highlights the social importance of its economic impact.
Seven new distilleries opened in Scotland last year alone, and many others are still in production. In anticipation of today’s debate I had a brief conversation yesterday with Stewart Laing, of Hunter Laing, one of the people behind the construction, from the foundations up, of a new distillery on Islay, at Ardnahoe. He described it to me as a lifetime commitment, and the Treasury should understand that: those who are part of the industry are not in it just for a quick buck in the here and now. Long-term planning and stability are of exceptional importance. Another Islay distillery that provides a great example for others to follow is that at Kilchoman. It was set up 10 years ago by the Wills family and now employs 25 to 30 full-time employees. It has a turnover of £4.6 million and it is still a family business. Of course Diageo, Pernod Ricard, Chivas and so on—the big players in the industry—are very important, but a pattern is emerging of a much more diverse range of business models. For them in particular, the medium to long-term future of the industry and its stability are of absolute importance.
As the Minister may have anticipated, I want to concentrate for a few minutes on the shorter term. We all know the rules on Budgets, and we know that one is coming up on 22 November, so I have realistic expectations about what the Minister will say now, but I want to test him on a few of the issues arising from the March Budget. That, of course, affects spirits producers in general, not just Scotch whisky producers. For the second part of today’s parliamentary happy hour, the Minister will doubtless return to this Chamber for the afternoon debate on beer and pub taxation.
The spring Budget delivered, somewhat out of the blue, an increase of 3.9% in the level of spirits duty. It is anticipated that the escalator will now produce a 3.4% increase at the end of this month, with a further 3% per annum thereafter. It is something of a supertax, which I suggest is ill conceived and misguided. It requires urgent consideration; otherwise the pattern that I have described of a growing, diverse whisky industry will be under threat.