I move: "That the Bill be now read a Second Time".
The Bill is concerned with the minimum period for which potable spirits, whether home-made or imported, must be kept in warehouse before being released for home consumption. At present, the law requires spirits, with some exceptions, to be matured in warehouse for at least five years. The Bill proposes to reduce this general age requirement from five years to three years and it also provides a special lower age requirement of one year for rum.
The Bill does not in any way affect the position of those descriptions of spirits which have always been exempt from the age restrictions. Examples of these classes of spirits are gin and liqueurs.
The proposed change in the law is being introduced at the request of the Irish distillers in order to provide them with greater flexibility in meeting the requirements of export markets. Whilst the law we are discussing applies only to spirits sold on the home market it has an indirect effect on exports. This happens because in an important export market like the USA imported spirits cannot be released for consumption unless they are eligible for sale in their country of origin. In the United Kingdom the general minimum age limit is three years. The result is that Scotch whisky and indeed Irish whiskey produced in Northern Ireland may be sold in the USA at three years whilst our whiskey must be five years old.
In considering this subject we must also bear in mind the trend of developments in Europe. The Council of Europe, of which Ireland is a member, has produced a draft Convention which defines various types of spirituous beverages and the definitions include a reference to the minimum age at which the spirits may be marketed. The minimum age proposed for whiskey is three years and that for rum is one year. It is to be expected that the European Economic Community may also decide to adopt similar definitions of various types of alcoholic beverages.
It can be said, therefore, that the amendments proposed in this Bill will do no more than bring our law into line with international thinking on the subject.
I would like to emphasise that the Bill is not designed to alter the character or reputation of Irish whiskey. All the law does is to specify minimum age requirements. The Irish distillers have always taken great care to safeguard the quality and reputation of Irish whiskey and they can be relied upon to continue to do so. In this respect, the interests of the consumers and the distillers coincide.
The Bill does not alter the duties on spirits in any way. As a corollary to the enactment of the Bill, however, it will be necessary to provide that spirits which have been warehoused for three years or more but less than five years will be exempted from the small additional duty of 2s 6d a proof gallon which is chargeable on immature spirits. In order to achieve this, the Government propose to make an appropriate Order under the Imposition of Duties Act, 1957. Neither the Bill nor the proposed Order will have any effect on the revenue.
