: I move: "That the Bill be now read a Second Time".
The provisions of the Irish Whiskey Bill, 1980, are explained in the memorandum which was circulated to Deputies on 25 June 1980.
This short Bill provides that spirits described as Irish whiskey or blended Irish whiskey must comply with certain technical requirements. It further provides that whiskey and blended whiskey produced either in the state or in Northern Ireland in accordance with these requirements shall be entitled to the description "Irish Whiskey" and "blended Irish whiskey". It also provides that the Irish Whiskey Act, 1950, be repealed.
The Irish Whiskey Act, 1950, protected the "good name" of Irish whiskey solely for the purposes of customs and excise, that is in connection with permits and certificates issued under the Spirits Act, 1880, accompanying the spirits in transit. These permits and certificates were designed to ensure the due payment of the duty chargeable on goods and were required to accompany them during removal from one place to another. Thus the Act of 1950 ensured that only spirits conforming to the definitions of Irish whiskey and Irish pot still whiskey as laid down in the Act could be described as such in the permits and certificates. However, the use of these permits and certificates by the Revenue Commissioners has now been discontinued for several years. In addition, the definitions contained in the 1950 Act are now considered inadequate because they do not make any reference to:
(a) a distillation strength limit;
(b) the period of maturation;
(c) the necessity of having organo-leptic — that is, taste and smell — qualities associated with and derived from the raw materials.
Also, the term "Irish pot still whiskey" is no longer used in marketing whiskey and there is no definition of blended Irish whiskey. For these reasons and some added considerations I am promoting this legislation.
The main added consideration which I have in mind relates to the fact that the only whiskey distillery operating in Northern Ireland is a subsidiary of our main distillery group, namely, Irish Distillers Limited. That subsidiary market their whiskey under the appellations "Irish whiskey" and "blended Irish whiskey" though their use of these appellations is not supported by legislation enacted by the Oireachtas or, until a very recent enactment, by legislation enacted by the UK Government. This point is of great significance because of new regulations being proposed by the EEC to govern the movement of whiskey within the Community. Under these proposals whiskey produced in Northern Ireland would not be entitled to be described, as it has been for years, as Irish whiskey or blended Irish whiskey, unless the use of these appellations is based on the legislation of a member state or states.
Discussions have taken place between the British authorities and ourselves as to the best way of dealing with the problem which the proposed regulations would otherwise present. It was considered that the problem could best be overcome by including in our legislation a provision to the effect that whiskey or blended whiskey produced in the South or in the North would be entitled to the appellations "Irish whiskey" or "blended Irish whiskey" and that similar legislative provision be made by the UK Government. Very recently, the necessary legislation was enacted on the British side and our Bill now proposes to do likewise. The enactment of this reciprocal legislation is, I should point out, a concrete example of political and economic co-operation about which the Taoiseach spoke in connection with his visit to the British Prime Minister earlier this year.
Finally, there is another reason for my being anxious to revise our definition of whiskey. The EEC Commission have had in mind for some time that whiskey be defined in an EEC context. The UK Government and ourselves feel that, prior to the discussions at EEC level on such a definition, the traditional manufacturers of whiskey in the Community — the Scottish and ourselves — whose production processes are broadly similar, should not only have as strong a definition as possible for whiskey but that both our definitions should be harmonised to the maximum possible extent. Though Scotch whisky is our main competitor in export markets, it is recognised on both sides that it would be to our mutual advantage to secure a Community definition that is acceptable to us.
The Bill which is now before the House takes into account all of the foregoing considerations. Thus the definition of Irish whiskey and blended Irish whiskey will now be aligned in general terms with the generic definition of whiskey as set out in schedule 7 to the UK Finance Act, 1969, as amended by clause 9 to the UK Finance Act (No. 2) 1980.
While I do not intend to go into the technical details of this Bill, which I am assured are in order, I should like nonetheless to draw Deputies attention to a few points of general significance.
I have decided not to provide for a generic definition of whiskey based on the criteria set out in the recent UK legislation — the Finance Act (No. 2) 1980, Clause 9 — because I am advised that such a definition might be regarded by the European Court of Justice as a measure having an effect equivalent to a quantitative restriction and thus contrary to Article 30 of the Treaty of Rome.
Although the Irish Whiskey Act, 1950, specifically defined Irish pot still whiskey, I have decided to omit reference to this product in the Irish Whiskey Bill, 1980, as the Irish distilling industry do not at present use this marketing term and do not envisage its use for marketing purposes in future. It is also relevant that the UK has not legislated for this type of product, and apparently does not intend to do so.
Section 1 (1) of the Bill provides that for the purposes of any statute or instrument made under statute, spirits described as Irish whiskey shall not be regarded as corresponding to that description unless those spirits comply with certain requirements. The objective of this provision is to ensure that Irish whiskey has an identity, backed by legislation, on both the domestic and export markets for any purpose. Section 1 (2) provides that the expression "blended Irish whiskey" shall mean a blend of a number of distillates, each of which separately is entitled to the description "Irish Whiskey". The production of blended whiskies is a feature of modern distilleries; such whiskies are so called to distinguish them from straight whiskies, which are produced from one distillation process.
Section 1 (3) (a) of the Bill sets out the technical requirements which must be adhered to before a product is entitled to use the appellation "Irish Whiskey" or "blended Irish whiskey". These criteria have been settled in agreement and following full consultation with the industry. Deputies will, I am sure, excuse me from explaining in any detail the precise reasons for these particular standards having been set. In any case I should be loathe to divulge the secrets of the whiskey production process which the Irish whiskey industry so jealously guards from its competitors.
As it is considered, for completeness sake, that a requirement about maturation should form an integral part of the legislation, section 1 (3) (b) provides that spirits must be matured for at least three years, either in the state or in Northern Ireland or partly in one and partly in the other before they can be described as Irish whiskey or blended Irish whiskey. It is provided also that the spirits must be matured in wooden casks.
The Irish whiskey distilling industry is one of the oldest and most valued industries in the country. Particularly in the past decade, it has grown in importance and has contributed significantly to our economy and to our export trade. The Irish Distillers Group, the blend — if I may so term it — of John Jameson and Son, John Power and Son, Cork Distilleries Company and "Old Bushmills" has an impressive track record behind it. For instance, the group now employ more than 1,000 people at their various locations, that is, at the two distilleries in Midleton and Bushmills; at its bottling plants and other offices. Sales of Irish whiskey rose from £18.8 million in 1970 to £82.3 million in 1979. Irish whiskey is now exported to more than 100 countries and the volume of this business has risen by 420 per cent between 1970 and 1979, from 207,000 cases to 1,080,000 cases. Indeed we all look to continuing growth in exports of the products of the group as now constituted and organised.
As the industry considers that its product requires legislative protection so as to give it an identity on both the domestic and international markets, I commend to the House the proposals set out in the Bill.
