ALEXANDER: SCOTCH WHISKY TRADE DEAL ABOUT SCOTLAND NOT SWINNEY

By Bill Heaney

Scottish Secretary, Douglas Alexander, has called on John Swinney to “put aside his personal point scoring” and work together with the UK Labour government to secure a US whisky trade deal.

It appears Mr Alexander has found the deal hard to swallow because John Swinney’s visit to the White House has been so well received in the media and elsewhere.

And many will consider to be petty, his point that the First Minister’s visit to the USA was facilitated by the UK Government.

Mr Alexander has accused the Scottish First Minister of attempting to downplay the work done by trade negotiators to support the Scotch whisky industry, which has a huge presence here through Chivas Brothers in Dumbarton, where 1,000 people are employed, and some smaller distillers in Vale of Leven.

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Douglas Alexander was a UK trade minister until last week when Ian Murray, his predecessor as Scottish Secretary in the Labour UK cabinet, was brutally sacked by Prime Minister Sir Keir Starmer.

This is being viewed in some quarters of the Labour movement as yet another Starmer blunder following closely on the heels of the Angela Rayner debacle, and so much else that has gone wrong for Labour at WSestminster.

Labour’s press release yesterday called on John Swinney “to continue the effective joined up UK approach to the [whisky tariff] negotiations ahead of President Trump’s state visit”.

He added: “The UK Labour Government has shown its commitment to Scotch whisky after striking a trade deal with India which provided a huge boost for the industry.

“As part of that deal, Indian import tariffs on whisky fell from 150% to 75% immediately and will drop even further to 40% within 10 years.”

Scottish Secretary, Douglas Alexander said: “With President Trump’s state visit just days away, we all need to put Scotland’s economy first – not political point scoring.

“Division at home only weakens our influence abroad.

“After the trade deal the UK Labour Government signed with the USA earlier this year, UK Ministers and negotiators have been engaged in further intense discussions around a range of trade issues, not least tariffs on Scotch whisky.

“It’s simply nonsense to suggest otherwise.

“I was pleased that the First Minister was in Washington to support our discussions with the US Administration.

“This Government will do anything we can to get a deal but that has to mean everyone pulling together in the interest of Scottish jobs and exports.”

Meanwhile, in the Scottish Parliament yesterday, there was another round of talks on Scotch whisky.

Gordon MacDonald (Edinburgh Pentlands) (SNP) asked the Scottish Government what recent discussions the economy secretary and business minister have had with the United Kingdom Government regarding tariff exemptions and other support for the Scotch whisky industry.

The Minister for Business and Employment (Richard Lochhead) replied: “I regularly meet those in the sector to discuss the challenges and opportunities that they face.

“In July, I wrote to the responsible UK Government minister to call for action on several trade issues that the Scotch whisky sector faces, as do those producing other iconic Scottish products.

“As members will be aware, the First Minister has been leading from the front on our intensive engagement with the sector. He has also raised the important issue with the Prime Minister and, this week, directly with the US President. Removing the 10 per cent tariff barrier between the US and Scotland would, of course, deliver economic benefits for both countries.

Gordon MacDonald told MSPs: “The Scotch Whisky Association recently released new data that shows that more than 1,000 jobs have been lost in the Scotch whisky industry since the most recent United Kingdom budget.

“In addition to the excise duty increase, the UK Labour Government introduced a national insurance increase, and energy prices remain too high, impacting energy-intensive industries that can access no support.

“Ahead of the next UK budget, what representations will the Scottish Government make to the UK Government to ensure that our economy and businesses are better supported to weather difficult economic headwinds?”

Richard Lochhead said: “Gordon MacDonald raises good points. Last night, along with many other members, I was at an event that was hosted by the Scotch Whisky Association in Edinburgh, and I can say that the First Minister’s standing up for the sector and taking its case directly to Washington went down like a fine dram with the industry.

“We now need the same approach from the UK Government to deliver on the tariff deal—it now has an opportunity to do that—and to address issues such as the alcohol duty, because the reduction in draught duty in the last budget increased the disadvantage that the spirits sector faces in our country and the inherent unfairness in the alcohol duty system.

“Other issues, such as the rise in national insurance contributions, also affect the hospitality sector and, in turn, the Scotch whisky industry. Like Gordon MacDonald, I hope that the UK Government will now stand up for the whisky industry and address those issues in its forthcoming budget.

But Tory Brexiteer Murdo Fraser said: “I join my fellow co-convener of the cross-party group on Scotch whisky in welcoming any moves to reduce damaging tariffs and costs on the industry.

“However, I am surprised that the minister cannot see the contradiction in the Scottish National Party position. If we were members of the European Union, as the SNP demands, we would currently be facing 15 per cent tariffs on Scotch whisky exports, not the 10 per cent that we have as part of the United Kingdom.

“It is only Brexit freedoms—which we would not have if we were in the EU—that give us the opportunity to negotiate away those tariffs.

Murdo Fraser, right, added: “When is the SNP going to rethink its damaging policy on rejoining the EU, which would cause such destruction in the Scotch whisky sector?

Richard Lochhead responded: “If Murdo Fraser was paying attention, he would know that the Scottish Government does not want any tariffs on Scotch whisky, be they 15 per cent or 10 per cent.

“Just as his Government for many years failed the Scotch whisky industry in relation to the 75 per cent duty that was placed on every bottle of Scotch whisky, thanks to his party, the current UK Government has a lot to do if it is going to stand up for the Scotch whisky industry.

“It can address that in its forthcoming budget, as well as by following in the footsteps of the First Minister by raising the tariff issue with the United States and concluding the deal, now that the First Minister has set the scene for it.”