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£100 a Second?


Monday, 1 December 2008 POSTED BY Michael Thomson IN Blog

The chairman of the Scotch Whisky Association, the CEO of Diageo, was reported in the Scotsman, suggesting (rightly in my view) that pubs and clubs that allow drunken customers on to the streets should be closed down.

He also insists there is only so much the industry can do on binge drinking, and is concerned that in its desire to be seen to be tackling the problem, the Government is punishing the many in its attempt to reform the few.

The tough-talking, he gos on to say in the article,  is also a reminder to well-meaning ministers that while they all share a desire to cure the worst excesses of binge-drinking, the Government must not bite the hand that feeds it -  "I would hope the Government remembers that Scotch whisky represents £100 a second in export revenues."

Walsh justifiably crows about  the £100 per second. According to Revenue and Customs for 2007, 317.89 million litres of  pure alcohol were exported from the UK, the highest total for Scotch Whisky ever recorded. At say an  average of £10 per LPA, that  gives a whopping  total of £3,170,000,000 of Scotch whisky  sold overseas to importers, distributors, wholesalers and ultimately retailers. But what is the relevance of that impressive  headline figure to the UK Exchequer?

The key here though, surely,  are the words 'export revenue'. While a great success story that merits a little boasting, obviously the customs and excise levied goes to overseas governments and  the 'export revenue' goes to the distiller.  So why should  the Government choose to 'remember' the £100 a second?

It's not going to see much of it.