This short Bill repeals the Irish Whiskey Act, 1950 and 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 descriptions "Irish whiskey" and "blended Irish whiskey". I am promoting this legislation for four main reasons as follows:
First, the Irish Whiskey Act, 1950 protected the name of Irish whiskey solely for the purposes of customs and excise. That Act 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 permits and certificates issued under the Spirits Act, 1880 accompanying the spirits in transit. However, the use of these permits and certificates by the Revenue Commissioners has been discontinued for several years. Accordingly, the purposes for which the 1950 Act was enacted no longer obtain.
Second, 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 organoleptic — that is taste and smell — qualities associated with and derived from the raw materials.
Furthermore the term "Irish pot still whiskey" is no longer used in marketing whiskey and there is no definition of blended Irish whiskey.
The third reason 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 importance because of new regulations being proposed by the EEC to govern the movement of spirituous beverages with appellations of origin 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.
The problem which the proposed EEC regulations would present was discussed between the British authorities and ourselves and 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. The necessary legislation was recently 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 between ourselves and the UK in a matter which concerns the North of Ireland.
The fourth reason why I am anxious to revise our definition of whiskey is that the EEC Commission has had in mind for some time to define whiskey 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, that is to say 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. I should say that the harmonisation of definitions proposed will not mean that Scotch and Irish whiskies will be identical. The key essential well known features of whiskey production which are common both to ourselves and the Scottish are being set down but distillation techniques and the mixes of raw materials used are not being specified or harmonised. Accordingly, the traditional differences in regard to taste and flavour which have existed between Irish and Scotch whiskey should not be disturbed by this legislation.
The Bill which is now before the Seanad takes into account the four considerations which I have mentioned and 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 the Bill, which I am assured are in order and acceptable to the industry, I would like to draw the attention of Senators to a few points of special general significance.
I have decided not to provide for a generic definition of whiskey based on the criteria set out in the UK legislation 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 I(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 will have 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 I(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". I wish to assure Senators that these criteria have been settled in agreement and following full consultation with the industry.
Section I(3)(b) provides that spirits must be matured in wooden casks 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. This maturation requirement accords with existing requirements under the Immature Spirits (Restriction) Act, 1969 which provides that whiskey produced in Ireland must be warehoused for at least three years before it can be delivered for home consumption.
Up to 1969, the minimum maturation period was five years but, in that year at the request of the Irish distilling industry, the minimum maturation period was reduced from five years to three years in order to facilitate exports. The request of the industry was a direct result of their recognition that public taste had switched to favour milder types of whiskey which did not require lengthy periods of maturation to maintain its quality.
The requirements about maturation are now being included in this Bill as it is considered for completeness sake that such requirements should form an integral part of the Irish whiskey legislation. The inclusion of the requirement about maturation in this Bill does not affect the Immature Spirits (Restriction) Act, 1969 administered by the Revenue Commissioners. The maturation provision in this Bill will operate completely independently of the Immature Spirits (Restriction) Act, 1969. It will, however, have the effect that spirits will not be entitled to the appellation "Irish whiskey" or "blended Irish Whiskey" until they have been matured for a period of at least three years whereas under the Irish Whiskey Act, 1950 spirits were entitled to the appellation "Irish whiskey" or "Irish pot still whiskey" as they came off the still.
The Irish whiskey distilling industry is one of the oldest and most valued industries in the country. It has a tradition stretching back over a thousand years but, in the past decade, it has been given new vitality by Irish Distillers, has grown in importance and has contributed increasingly to our economy and to our export trade. The Irish Distillers Group, which has grown from the merger in 1966 of John Jameson and Son, John Power and Sons and Cork Distillers Company now employing more than 1,000 people at their various locations including Midleton and Bushmills. The farming community, through the growing of barley for the production of whiskey, also derives substantial benefits from the industry.
The aim of the Irish Distillers Group is to make Irish whiskey a force in world markets and their performance in recent years is indicative of their determination. Between 1970 and 1979 whiskey exports increased by 420 per cent to more than one million cases and Irish whiskey is, in fact, now exported to more than 100 countries. In America, Irish Distillers' largest single export market, Irish whiskey continued during 1979 to maintain a faster rate of growth than the market as a whole. In the EEC, the group also increased their sales substantially during 1979.
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.
