REDUCING THE HIGH COST OF WHISKY

Evening Post, Volume CXIX, Issue 34, 9 February 1935, Page 25

REDUCING THE HIGH COST OF WHISKY

"Freedom and whisky /gang: thegither," sang Bobbie Burns, but the distillers and farmers of the .Highlands at present are hot on the trail of-Mr. Neville Chamberlain and1 Mr. "Walter Elliot, to" drive; home ; the'fact; that for fourteen years the whisky industry has been.in bondage to the State with a crippling duty.of 72s 6d per proof gallon, writes P. W. D. Izzard'in the "Daily Mail.";' ■.:■•:■ .- -.-. .■■:•■ -\v:

The distillers and blenders recognise the Chancellor's difficulty, but at the same time they feel that their trade has been very badly treated and they have put their case forward to successive Chancellors as that of a home industry which, despite the' avowed policy of the Government, is being harassed rather than helped! Whisky now costs 12s 6d a bottle, out of which the Government takes in duty 8s s£d. The effect of this: heavy tax on the distillers may be realised when it is considered that they have to manufacture the drink, keep it for seven years maturing, supply cases, bottles and straw, market it, and provide a living profit for the wholesaler and retailer.

The effect on the retailer, is, perhaps; more readily seen, because on .every case of twelve bottles there is £5 Is ~6d to be paid in duty before he can get the whisky to his establishment. If he should stock only twenty cases he is involved in a capital outlay of more than £100 in duty alone. As he must pay the distiller £6 17s 6d per case,.there is a very small margin of profit, while, owing to the price of 12s 6d a bottle, there is also a much shrunken, demand.

. Before the •vyar whisky soid mr Scotland: at.a>6ut 3s 6d. a bottle, and in England at 4s" 6d "ih addition to which it was stronger. ..;.. • ■

But things are moving in the whisky

world, and recent weeks have held important steps to redress a grievance which, all these years ;has been ■weighing heavily both, on farmers and distillers. . • . • . - It was first announced at a meeting of Moray Farmers' Club, at Elgin, that the Scottish: distillers had given their; guarantee to use the -whole of the Scottish barley crop that should'prove suitable for their purpose. Following this, a' few days, before Christmas there came a deputation from-Scotland to urge the National Conservative members of the House", of .-Commons' to support a decrease of the Excise duty on spirits. -Now, this gesture of -good will by the distillers, which was received with elation by the farmers, seeing that barley is their staple crop, is bound up vitally with the aim Of the deputation to London. For r-have it direct from the whisky trade that its promise to "the fanners for this season cannot be repeated year after year' without s6me remission of the' spirit duty. ' There are two reasons for this:— The whisky business has encountered increasing' difficulties under the 72s 6d duty. The distillers can buy cheaper barley, and some of-it more suitable, from Denmark and '.elsewhere. ' * Hence the farmers have joined'hands with the distillers. Indeed, they have formed a partnership in this agitation for at least twelve years past,' and at the moment it appears likely to prove more profitable than the partnership of English farmers "with. the bi-ewers.

The; trade ,has. pointed/"tfut.'':^'^'if butter, for. instance, were;: taxed ■ today on tlie same sc^e.kisspirite/are taxed, it would be selling per: pound at the present price .of a bottle 'of whisky^ "' ; ■ '; ■::., :