Government confusion led to old firm sponsorship drop
See also
New rules may outlaw hospitality as bribery
Nathalie Thomas - Scotland on Sunday - 7th February 2010
As hundreds of people enjoy corporate hospitality at Murrayfield today, they should prepare for a shock – it may all have to end soon.
Legal experts are warning that new anti-corruption laws threaten to consign expensive sports trips to the history books as corporate hospitality of this kind could be considered a "bribe".
Individual packages worth as little as £100 could fall foul of the new rules, meaning invitations to the best seats at Murrayfield or a round of golf at a top Scottish course could be at risk.
The Bribery Bill, designed to tackle serious corruption, is expected to become law at Westminster later this year and will apply to Scotland.
Tickets for Murrayfield's best seats at this weekend's Scotland v France game cost £70 even before food and drink are taken into account, while a round of golf at a top Scottish course is usually a three-figure sum.
But Barbara Bolton, a senior solicitor at Tods Murray, says entertainment worth as little as £100 could be considered fraudulent under the bill's terms. At present, companies found guilty of bribery face an unlimited fine, while individuals can get up to ten years in prison.
Bolton said: "Our whole corporate hospitality culture is about giving advantages or perks with the intention of getting or retaining business. This bill could potentially cover tickets for the rugby, a free round of golf and lunches. Although it is not openly said, these are all things we do with the intention of winning business."
The UK government has said it will issue guidance on what will and will not fall foul of the law, but Angus MacLeod of Wright, Johnston & Mackenzie solicitors said firms were likely to be far more cautious in future about how they woo clients.
He said: "The whole point of corporate hospitality is it gives you an opportunity to meet people and you might win business as a result of that. It's also an opportunity to give a 'wow factor', but if you make too much of a wow, you may end up in the clink."
MacLeod says the government's guidelines need to be clarified.
Although corporate hospitality has suffered during the recession, it was not unknown during the boom years for companies to fly their clients out to places such as the Algarve for golfing breaks, MacLeod said.
Events organisers claimed the new rules had the potential to "paralyse" some industries.
Scottish Fashion Council co-founder Tessa Hartmann said the "preposterous" bill would damage businesses such as fashion, where swish parties and generous goodie bags were the norm.
Hartmann, who runs her own PR firm, Hartmann Media, said: "During London Fashion Week, which is twice a year, I probably go to five or six events each day. It's not a bribe, it's called promotion. The prospect of this kind of activity being affected is appalling. It's insulting to put the word bribery next to it."
Liz Cameron, chief executive of the Scottish Chambers of Commerce, also urged the government to clarify the legislation.
She said: "Basic corporate hospitality is a key part of how businesses network, find new business and build relationships with existing customers. We urge that a balanced, commonsense approach be adopted. Any law must be drafted to ensure that innocent activities are clearly separated out from influencing deals through any form of bribery."
A spokesman for the Ministry of Justice in London said: "Whether hospitality will amount to bribery will depend on the facts.
"If lavish hospitality is provided in a manner in which it is reasonable to conclude that it is intended to induce a person to improperly perform a relevant function as defined in the bill, it will amount to a bribery offence."
Labour drinks ban to target Buckfast wine
Tom Peterkin - 7th February 2010
A ban on Buckfast, the controversial tonic wine blamed for violent behaviour, is being proposed by Labour as part of plans to tackle Scotland's troubled relationship with drink.
The party's new Alcohol Commission, due to be launched tomorrow, will consider following the lead of some European countries by imposing a legal limit of 150 milligrams of caffeine per litre of alcohol.
The tonic wine, which contains 15 per cent alcohol and is made by Benedictine Catholic monks at Buckfast Abbey in Devon, has a caffeine level of 375 mg/l, putting it way above the limit. Its manufacturers would either have to cut caffeine content or face a legal ban under the new proposals.
The commission will also look at what can be done to tackle mixers with a high caffeine content. Alcoholic spirits are often mixed with drinks such as Red Bull (320 mg/l) and Red Square Reloaded (420 mg/l).
Scientific research has linked the consumption of high levels of alcohol and caffeine contained in drinks like Buckfast with erratic and risk-taking behaviour.
The Commission, chaired by Professor Sally Brown of the Royal Society of Edinburgh, has been charged with finding a way of imposing a limit that would effectively prevent the sale of ready-mix drinks with a high caffeine level.
If the plans were adopted, Scotland would follow the example of Denmark, Iceland and Norway who have all imposed a legal caffeine limit of 150 mg/l in alcoholic drinks.
Labour has established the commission, to come up with an alternative to the SNP's plans to place a minimum price on units of alcohol.
The Conservatives have said they will study the proposal, raising Labour hopes that their "ban Buckie" approach may secure parliamentary support.
"I believe that the risks involved in consuming caffeinated alcohol are so great that the Scottish Government must take action," said Jackie Baillie, Labour's health spokeswoman.
"The research suggests that you are more likely to end up in hospital or be assaulted if you drink these products. This is not just about Buckfast, but we need to do something about it."
In the US, the Food and Drink Administration has announced that it is considering a similar ban on caffeinated alcoholic drinks.
Earlier this year, Strathclyde Police revealed Buckfast was mentioned in 5,638 crime reports in their area between 2006 and 2009 – an average of three crimes per day. One in ten of those offences was violent and the bottle was used as a weapon 114 times in that period.
US scientists have raised concerns about mixing caffeinated and alcoholic drinks, warning that being simultaneously "wide awake and drunk" increased the risk of violence, injury or becoming involved in dangerous sexual situations.
Richard Simpson, the Labour MSP and former psychiatrist, said: "It is a fact that research has shown that mixture of a stimulant (caffeine] and a depressant (alcohol] leads to a chaotic situation, which means there is a much greater risk of engaging in violent behaviour."
But the Lib Dems Justice spokesman Robert Brown dismissed the proposal as "publicity stunt politics".
Jim Wilson of J Chandler & Co, the Buckfast distributor, has disputed Labour's claims, saying there is no evidence to suggest that health incidents had been linked to the drink.
Wilson accused Labour of "scaremongering" but said he would be happy to give evidence to the Commission provided "it's going to be constructive and they're not playing party politics".
The SNP health secretary Nicola Sturgeon said establishing the Commission was a "blatant disregard" for parliament and described it as a "hand-picked talking shop designed to delay and distract".
Molson Coors says government confusion led it to drop Carling sponsorship of Celtic and Rangers
Erikka Askeland - 7th February 2010
Molson Coors, the brewing giant behind Carling lager, has attacked the Scottish government over lack of clarity in current legislation on alcohol.
Paul Miller, director of sales for Molson Coors Scotland, said Scottish legislation was "difficult to understand" and interpret.
Following changes to the rules of how alcohol is marketed in shops and pubs, the uncertain regulatory environment prompted the world's fifth largest beer company not to renew its seven-year sponsorship of Celtic and Rangers football clubs.
Although the Scottish Government has not banned alcohol logos on sports kits, the company will remove its logo from Old Firm shirts after already agreeing to drop it from children's shirts in August. Miller said the move was a reaction to Holyrood's views on sponsorship.
Miller said: "We were recognising the government's perspective and views on alcohol and sponsoring on shirts," said Miller. "The Old Firm sponsorship has been great for us and getting awareness for Carling but we recognise their view."
Serving to highlight different firms' take on the issues surrounding alcohol, last week, Tennent's, the lager brand owned by Irish brewer C&C, signed a deal to take up the Old Firm sponsorship.
Miller said Molson Coors had hired a staff to deal with changes in alcohol promotion in supermarkets – known as the "off trade" – but that the group struggled with the impact of promotion of alcohol in "on trade" pubs. "In the on-trade, the biggest challenges have been how to interpret the legislation," said Miller.
"If a promotion offers someone a free pint of beer, is that encouraging someone to consume more than they would otherwise consume? I guess the answer would be yes. But curiously, to the letter of the legislation, it doesn't. That is the difficulty, to understand what can and can't be done. The important thing for us is we don't contravene the spirit of the legislation.
"Recent changes in legislation makes Scotland very different from England and Wales in terms of what you can and can't do from a promotional point of view.
"Quite often promotional activity in England and Wales has to be adapted quite significantly to be run in Scotland. It is important we ensure what we are doing is responsible."
Miller also confirmed its support of the Scottish government's policy on minimum pricing after recent reports suggested it was against the proposed government policy.
At the end of last month, bosses at Molson Coors were furious when the BBC reported Carling was against the measures after C&C announced its support of minimum pricing. In June last year, Molson Coors became the first UK brewer to say it was in favour of minimum pricing. Through its Molson division, the firm is one of the largest brewers in Canada, where minimum pricing is also in force.
Miller said he was in support, although he hadn't "seen a specific, clear proposal" for minimum pricing.
A spokesman for the Scottish Government said its policies on minimum pricing and the promotion of alcohol were "not mutually exclusive" and its legislation was "not anti-alcohol".
"If that (minimum pricing] creates an element of uncertainty, I don't think that can really be avoided, in that it is pioneering and until it is implemented, the full effects cannot be known. The research we have indicates it will have positive impacts on public heath," he said.
The end of the sponsorship threatened the Old Firm with the loss of an estimated £2.2 million in revenues, an added blow after the Scottish Premier League agreed to a reduced TV deal with broadcasters Sky and ESPN.
Miller said Carling was "moving to a different stage" and would "look at other areas of football", adding that details would be announced in the next few weeks.
Tennent's owner C&C said it was confident its approach to sponsorship was in line with government objectives. A spokeswoman said: "To date we have worked in close consultation with the Scottish Government with regard to our sponsorship activity, and we will continue to do so."
See also:
Scots drink the equivalent of 125 bottles of wine each per year
Scottish alcohol abuse
Scots health chiefs unite against cut-price booze
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