Cider House Rules II

We don’t often get to discuss the politics of cider.  Politicians are usually smart enough to leave cider alone.  But it did make the headlines this week, with news of changes in EU rules that could have a devastating effect on small producers.

This, of course, is the opposite of what should be happening, even under the EU if EU thinking on re-localised production were to lead to matching actions.  The EU is a combination of the wrong things done badly and the right things not done at all.  That’s partly down to how it’s designed, as an economic union that does political things, like regulation, when it needs to be a political union that does economic things, like asserting European self-sufficiency and solidarity on the global stage.  While leaving internal regulation to the regions.

The vision just isn’t there, which is why so many are turning off and turning away.  They’re not helped by misinformation that goes unchallenged, pumped out by a media whose handle often seems cranked by bitter old men dreaming of a new 1950s.  The facts about Europe, when you can get them, are often surprising.  And one is that it’s wrong to blame the EU over the craft cider rules.  It’s London again, that has so far failed to make the case for an exemption.

Fomenting Ferment

Mess wi' we, would thee?

Alistair Darling has created quite a stir by upping the tax on our cider. Facebook's 'Leave Our Cider Alone!' group, created only yesterday, now has approaching 30,000 members. The Wurzels have pledged their support and the race is on to get 'I am a Cider Drinker' to No. 1 in the charts.

David Cameron has got in on the act, claiming that the Government "doesn't understand the West Country". In fact, media analysis shows that the Government understands only too well. With Labour support in the South West the lowest for any of the Prescott zones, the Government knows it has nothing to lose by hammering cider. You wouldn't expect it to go after whisky now, would you? But with House of Commons catering subsidised by the taxpayer, do any of them, whatever their party, understand anything?

A vote for Cameron is not a vote for change. The Tories stubbornly oppose the kind of constitutional reform that would place Wessex beyond Labour's grasp by returning to us - permanently - the power to shape our own lives. No matter how long they hold office, the Tories must lose again one day and Labour's votes, piled up in the nations and regions beyond Wessex, will again determine our fate. Until we vote for the one party truly committed to ending the see-saw for good - the Wessex Regionalists, the party for Wessex.

Keep Off the Cider!

Alistair Darling’s last budget before the election took a widely predicted swipe at cider drinkers. This afternoon he announced plans to raise the excise duty on cider by 10% over inflation, singling out our region’s choice for special mistreatment. Taxes on beer, wine and spirits will rise by just 2% over inflation, so Labour’s champagne socialists will be raising their glasses to the Chancellor tonight.

We already have some of the highest rates of duty in the world and the latest increase is bound to cost Wessex jobs. A 47% increase in cider duty in 1984 resulted in the loss of more than 500 jobs industry-wide and duty increases remain a threat to the success of cider sales today. The cider industry, as one of the few to have achieved growth through the recent recession, is a true success story. Today’s duty increase will undo much of this good work and the impact of a significant price increase to the consumer will probably also be counterproductive in raising revenue for the Government. Currently cider and perry contributes around £370 million annually, or more than £1 million a day, in excise duty and VAT to the UK Exchequer.

Duty on a pint of cider has been traditionally low - around 18p on average compared to 46p for a pint of beer - despite cider's popularity with problem drinkers and the young. There has been intense lobbying to raise its price. Yet alcohol consumption is falling at the fastest rate for six decades, with pub closures the most visible sign – running at 52 a week. In truth, there are no problem drinks, only problem drinkers, and making everyone else drink less is not the solution.

Cider is much more expensive to produce than other drinks and it helps underpin the economy in many rural areas. Raising the tax on cider will make beer more competitive, to the advantage of the big foreign breweries. David Sheppy, of Sheppy’s Cider, from Bradford-on-Tone, near Taunton, said: “We are not pleased. A 10% increase is quite devastating news. A lot of money has been put into investment in the cider industry, and we don’t now want to see that investment wasted.”

John Sheaves, Chief Executive of the food and drink association Taste of the West, described the proposal as "a sledgehammer being used to crack a nut. Because of the nature of the industry, we're not talking about big companies, we're talking about small producers who often employ very few people and have fixed overheads and small avenues by which they can increase prices.

"To slap a tax on sales would impact on those businesses' profitability and ability to thrive. The Government is meant to be trying to encourage home-grown production and sustainable food and drink production as well as trying to encourage rural economic development. That doesn't square with this proposal."

Simon Russell, spokesman for the National Association of Cider Makers, said: "This is entirely the wrong message. It puts at risk the very businesses that are doing so much to bring investment to the rural economy and to use the countryside in a positive, agricultural way including helping with carbon emissions."

It has to be said that not all ‘cider’ sold in the UK is truly worthy of the name. Some of it is just cheap strong alcohol which is called ‘cider’ for tax purposes. It could be made out of corn syrup or anything, with flavouring and saccharin added. A more discriminating approach to definitions could help Wessex a lot.

Tackling ‘alcopops’ by taxing cider will not deter those with disposable income who are determined to drink. They will find substitutes or else pay more. Or steal more, in some cases. Chris Coles, managing director of Topsham-based Green Valley Cyder, stated: "The supermarkets are frequently discounting lagers which you can buy for 25p a can – that's almost criminal, it's encouraging people to drink without encouraging them to make a sensible choice."

Instead of punishing the responsible and irresponsible alike, the Government should enforce more firmly the existing laws on sales and on-street behaviour, adopting a policy of zero tolerance towards those who go beyond their limits.