BID TO HELP SMALL BREWERIES

The Motion calls on the Government to extend the relief which small breweries, those producing up to 60,000 hectolitres, are eligible for to all independent breweries producing up to 200,000 hectolitres. This move would bring Britain in line with other EU countries, most of which offer considerably more support to their independent breweries.

Local brewery, Harvey's of Lewes, produces approximately 62,000-63,000 hectolitres of beer each year and produced a record 38,000 barrels of beer in 2005. This output means that Harvey's lies just outside the category of small brewers currently eligible for relief.

Commenting on the EDM, Norman Baker says:

"It is disappointing that the government isn't giving independent breweries in this country the same amount of support that independent breweries in other parts of the EU receive. The current system puts Harvey's, our excellent local brewery, at an unfair disadvantage. Harvey's is now too successful in terms of output to be eligible for the relief available to small breweries but isn't big enough to compete with the large brewers who enjoy greater economies of scale.

"I hope that the government will now look to change the current system of relief to ensure that greater support is available for medium-sized, independent breweries who specialise in producing good quality, traditional, beer. It would be a great shame if this lack of assistance from the government were to damage the prospects of independent breweries and lead to a further reduction in the variety of real English ale available."

ENDS

Please find EDM wording below:

EDM 1955

SMALL BREWERIES' RELIEF

30.03.2006

Mulholland, Greg

That this House endorses the current system of small breweries' relief that has helped small brewers to compete with larger brewers who enjoy greater economies of scale of production, and has enabled small brewers to invest in gaining access to market; notes the importance of small and independent brewers for consumer choice, competition, tourism and local employment; recognises that independent brewers producing between 60,000 and 200,000 hectolitres are too large to benefit from small brewers' relief yet too small to benefit from the substantial economies of scale of production of the global brewers; further notes that 13 EU countries provide small breweries' relief for all independent brewers producing up to 200,000 hectolitres; and therefore urges the Government to consider an extension of small breweries' relief to benefit all independent brewers producing up to 200,000 hectolitres.

Jana Sparks

Researcher to Norman Baker MP

Room 374

Portcullis House

House of Commons

London

SW1A 2LW