Seanad Éireann debate -
Tuesday, 2 Dec 1969

Vol. 67 No. 3

Private Business. - Immature Spirits (Restriction) Bill, 1969: Second Stage.

Question proposed: "That the Bill be now read a Second Time."

Minister for Finance (Mr. Haughey)

Under the Immature Spirits (Restriction) Act, 1947, potable spirits, with certain exceptions, must be warehoused for at least five years before being cleared for home consumption. The main exceptions are gin and liqueurs.

The Irish distilling industry indicated recently that they would like to have this minimum warehousing period shortened. As it stands, it is longer than that applicable in the United Kingdom —three years—and it affects our export trade to the United States in that spirits cannot be put on the market there unless they are eligible for sale in the exporting country. This means that Irish whiskey may not be sold in the US until it is five years old while whiskey produced in Northern Ireland and Scotch whisky may be sold when three years old.

Apart from export considerations, there is the desirability of keeping in line with developments in Europe. The Council of Europe has prepared a draft Convention relating to spirits in which a minimum age of three years is proposed for whiskey and of one year for rum. These limits may well be adopted in the EEC. Thus, the Bill now before you brings our law into line with thinking abroad on the subject.

The repute and characteristics of Irish whiskey will not be affected by this Bill. The Irish distillers have taken care always to ensure that their products are of the highest quality. At present, the industry is gearing itself for the seventies and is developing its outlets and can be relied on to safeguard the valuable reputation of Irish whiskey.

There will be no loss of revenue as a result of this amendment but a minor alteration in the additional duty charged on immature spirits becomes necessary as a consequence. At present, spirits warehoused for less than five years are liable to a small additional duty of 2s. 6d. a proof gallon. In line with the reduced warehousing requirement this charge will for the future be applied only to spirits warehoused for less than three years. It is proposed to give effect to this change by means of an order under the Imposition of Duties Act, 1957.

Mr. Alexis FitzGerald

On behalf of the Fine Gael Party I should like to welcome this measure and to make three points about it. Firstly, it is the sort of measure which particularly recommends itself to us in that although it is small in apparent effect its totality of good achievements can make something enduring and remarkable. This is a technical change recommended to the Department of Finance by the industry concerned and it is from all the information one has, likely to facilitate the increased exportation of the product of this very great and ancient Irish industry.

The second point I should like to make about this, which in a way leads on to the third, is just to mention to the House, if the House or any Member of it are not aware already, that the background to this type of legislation is to be found in the events of 1915 when Britain at war found its munition industry being damaged by excessive alcoholism. The then Minister for Munitions, Lloyd George, as Chancellor of the Exchequer, introduced a very savage new duty on spirits in which he actually doubled the duty.

There was a great outcry which had one not unexpected effect—every Irishman in the House voted against it The second even more remarkable effect is that the predecessor to Senator Owen Sheehy Skeffington and his colleague, the representative of Dublin University, Sir Edward Carson for the first time did not vote in favour of a measure proposed by the Government; he abstained from voting in fact and said he was opposing it in speech but he did not in fact vote against it. As a result of this outcry the extraordinary situation emerged that for ten days the duty was on and then had to be withdrawn. They settled for a restriction of immature spirits. As I say, this was opposed by Sir Edward Carson the representative of Dublin University, his particular interests, the distilleries in Belfast, had not in fact stocks on hand to meet the demand. The people in the south had stocks and they were prepared to meet the three year period. There was a great objection taken to the consumption of raw potable spirits. As one who was mature enough to have consumed during the war what was called "lovely two-year old", and almost perished as a result of it, I have great sympathy with the criticisms made.

This leads me to my third point. There is some evidence at any rate that there are certainly in some spirits, and in minute quantities in potable triple distilled whiskey, certain higher forms of alcohol which have become degraded. However, I am sure the industry here, in the interests of its own reputation, always ensures that the toxic effects are eliminated. It occurs to me to be an important point to make —and one to which I draw the Minister's attention—that the effect of this Bill will be to reduce the restrictive period of five years to three years not merely in respect of Irish whiskey, but in respect of whiskey wherever it may be produced. There may be countries which have not the same concern our distillers have in regard to these toxic elements. Therefore, it seems appropriate that I should, in welcoming this Bill, draw the Minister's attention to the desirability of having this question, in relation to other types of whiskey, referred to Comhairle na Nimheanna, which is concerned with such matters and will be aware of the possible toxic effects of immature whiskey, which may be not matured after three years in uncivilised places.

Minister for Finance (Mr. Haughey)

I agree with Senator FitzGerald that it is very important indeed that we should protect the Irish palate from the incursion of uncivilised whiskey from abroad. Whatever action may be necessary from time to time in that regard will, of course, be taken by me. I am grateful to the House for the expeditious way in which they have dealt with this Bill.

Question put and agreed to.

An Leas-Chathaoirleach

Next Stage?

Tomás Ó Maoláin

Can we have the remaining Stages of this Bill now?

Agreed to take remaining Stages today.