Select Committee on Scottish Affairs Minutes of Evidence


Examination of Witnesses (Questions 60-68)

RT HON ALISTAIR DARLING, MR DAVID CAIRNS AND DR JIM WILDGOOSE

19 OCTOBER 2005

  Q60  Chairman: Secretary of State, are you able to bring the Committee up to date on the latest thinking on strip stamps on bottles of spirit? Are they going to accept this Committee's recommendations that a fiscal stamp is incorporated into the back label of a bottle of spirit rather than having a strip stamp over the closure of the bottle?

  Mr Darling: My recollection is that there have been very useful discussions between now HM Revenue & Customs and the whisky industry which are reaching a conclusion. I am afraid I cannot tell you the precise nature of it, but if you want I will either write to you or get the Chancellor to write to you.[11]

  Q61 Chairman: Yes, that would be very helpful if you can ask the Chancellor.

  Mr Darling: I think David is saying there is a memorandum of understanding

  Mr Cairns: I met with the Scotch Whisky Association a few weeks and they were very happy with the progress of the discussions. They thought they had made very significant progress in terms of finding a way to meet the concerns of the Customs and also their own concerns and today they have signed a memorandum of understanding with the Treasury, not specifically about strip stamps but about the whole issue of smuggling that gave rise to the strip stamps. I think perhaps the controversy, if you like, that came out of the strip stamps' debate has opened up a great deal of dialogue and we are addressing what both sides of the industry and the Government perceives to be a common problem and, as I say, the memorandum was signed in the Treasury today.

  Q62  Chairman: I hope Secretary of State and Minister, you appreciate the industry really desperately wants this because it is a lot of jobs we are talking about and the industry's future.

  Mr Darling: It is fair to say that we are seeking to form a view with the Scotch industry but I think the situation we have got to now is satisfactory.

  Q63  Mr MacNeil: Just a brief question. Did you look at putting a mark in the glass itself as opposed to strip stamps to identify the bottle's origin or where the bottle was meant to go?

  Mr Darling: It is the Revenue & Customs that have the lead in this and not the Scotland Office. Basically over the years both sides have looked at many different things, the common ground is that there is a problem. It is not the majority of the industry but there is a sizeable minority of the industry where there is a problem. Yes, they have looked at all these options, but I understand where they have got to now is satisfactory to both sides.

  Q64  Chairman: What is the Scotland Office doing to help ensure that the UK abides by its ratification of the European Charter for Regional and Minority Languages?

  Mr Darling: What were we doing to implement it?

  Q65  Chairman: Yes.

  Mr Darling: Do you want to deal with that?

  Q66  Danny Alexander: In particular helping the Prime Minister translate calls and letters into Gaelic?

  Mr Darling: As and when we get a letter in Gaelic I am sure we will arrange to reply in the appropriate terms. I took note of what was said and I do not think that will happen again.

  Q67  Chairman: Secretary of State, Minister, and Dr Wildgoose, thank you. Before I bring this meeting to a conclusion, is there anything you wish to add perhaps on topics not covered properly during the questioning?

  Mr Darling: No.

  Q68  Chairman: Thank you very much.

  Mr Cairns: You are all welcome to come to the launch of the Poppy Appeal in Dover House this evening.





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