Memorandum from Joseph E Seagram &
Letter to the Clerk from the Director
of Public Policy and Government Relations, Joseph E Seagram and
On behalf of Chivas Brothers Ltd and The Glenlivet
Distillers Ltd, our whisky production interests in Scotland, I
am pleased to endorse the Scotch Whisky Association's submission
to the Select Committee, which was transmitted to the Select Committee
Our parent company, The Seagram Company Ltd,
a Canadian entity, has been investing in Scotch whisky production
for over 50 years. We believe that our nine Highland distilleries
produce some of the finest whiskies in the world. From our extensive
bottling and warehousing facilities in Paisley, Seagram ships
its many Scotch whiskies to over 190 global markets.
At the same time, we are delighted to welcome
to our Scottish operations a variety of international visitors.
These include not only our consumers, but also our global and
regional distributors, other business customers, foreign government
representatives and other distinguished guests.
The SWA submission raises several important
points for the Select Committee to consider. The impact of the
UK's high rates of excise duty on overseas governments' tax policies,
to the detriment of our export competitiveness, should not be
underestimated. A convergence of UK alcohol excise tax rates towards
a single excise rate based on alcohol content would enhance the
UK Government's position in arguing for non-discriminatory tax
policies within the EU and other world markets.
With regards to industry regulation, the planned
imposition of the proposed Climate Change Levy is a cause of great
concern to many in the industry. Given the complicated qualifying
criteria, the Levy will not be applied in a uniform manner across
the distilling industry. This will inevitably lead to competitive
distortions. The members of the SWA will continue to work with
the Government in an effort to eliminate these distortions from
the application of the Levy.
It is hoped that this submission is helpful
to your enquiries. As already states, Seagram endorses the submission
of the SWA and have no further comments.
Office of Public Policy and Government Relations
Joseph E Seagram and Sons, Inc
88 See evidence, HC 973-ii (Session 1999-2000), pp.