Friday, July 10, 2020

Industry accuses gov of misleading public over true cost of wine import certificates

The government has been accused on misleading the public over claims that EU wine importation costs would be “nil or negligible”.

The government’s claims come months after discussions with the Wine and Spirit Trade Association (WSTA) originally led to an agreement to suspend the costly paperwork.

Despite this initial recognition of the burden it would place on UK wine businesses, the government has U-turned on this promise at a later date – but the WSTA argues it is “inconceivable” that they are not aware of the sizeable cost to business.

Prompted by a question from Tim Loughton, MP last week, Defra was asked to assess the cost of VI-1 import forms on all EU wines, which would follow a No Deal Brexit.

The WSTA has challenged the reply given by Victoria Prentis, Under Secretary of State for Defra, and accused her of misleading Parliament by ignoring the £70 million bill anticipated by British businesses from the extra red tape.

Last year the WSTA warned that the new inspections for imported EU wine would generate over 600,000 customs forms which is anticipated to treble the inspection board’s workload overnight.

EU wine producers will inevitably pass some, or all, of these costs on to UK importers and customers meaning that UK wine businesses, especially High Street specialist merchants, will suffer.

As well as putting a huge burden on the UK wine industry the WSTA warns this will lead to higher wine prices – adding an estimated 10p on a bottle of wine – and a reduced choice for consumers.

In reply to the question, Ms Prentis said:  “As inspections for imported wine are undertaken on a risk-based percentage, regardless of origin or import certification, no specific assessment has been made regarding additional costs of controls, although it is expected to be nil or negligible.”

Miles Beale, Chief Executive of the Wine and Spirit Trade Association said:  “The Minister has been highly selective in focussing on the costs falling on UK enforcement bodies of requiring import certificates for EU wine and has chosen to completely overlook the significant costs falling to exporters, costs which will have to be met by UK importers and ultimately UK consumers if we leave without a deal.

”It is extremely disappointing that despite four years of discussing this issue with Defra the facts have fallen on deaf ears and the Minister has confirmed that the government has not even bothered to make any assessment.

“Far from taking back control, simply rolling over and having to bend to existing EU law which disadvantages wine imports makes absolutely no sense for a nation of wine lovers that imports 99% of the wine we enjoy.

“This government needs to wake up, listen to business and start taking action that supports economic activity and job creators. And it doesn’t have long to do it.

“We have long supported a risk-based approach to inspection, but the costs of additional VI-1 forms for EU wines will not be ‘nil or negligible’ – the truth is that for UK wine SME businesses they will be catastrophic and are likely to put people out of business.

“But it’s not just British business which will suffer, Britain’s 33 million wine lovers will too. The cost of wine will go up and consumers will see some of their favourite wines disappear from the shelves.”

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