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SGF Makes Case Against Inflexible Tobacco Regulations
20 July 2010
SGF has submitted a detailed response to the Scottish Government’s consultation on the regulations governing the proposed ban on the display of tobacco in shops.
The Scottish Government draft regulations propose the permitted display area should be 120 sq cm (roughly the size of a packet of 20 cigarettes). In England, the Department of Health has agreed the permitted display area will be 7,500 sq cm.
SGF remains opposed to the ban and in their response calculated the cost of a ban under the current proposals as being far higher than suggested in the consultation and by Ministers.
John Drummond SGF Chief Executive said,
“Ministers have suggested the cost of a ban for a medium sized store would be around £320. We believe these costs have been severely underestimated. Discussions we have held with shop fitters, shows the likely costs of installing flaps over existing gantries will be at least £1400. However, these costs would increase if finding a long term retrofit solution for existing gantries proves challenging due to the restrictive dimensions of the permitted display area.
“There will also be additional on-going costs for retailers as a result of a display ban due to increased transaction times.
“Despite our opposition to the ban on the grounds that there is no compelling evidence that it would be effective, we will continue to engage to attempt to find a low cost solution.
“We are also asking the Scottish Government to reconsider implementation dates. Whilst we agree with staggered implementation dates between large and small shops, the compliance dates of October 2011 for large stores and October 2013 for small stores is unrealistic, considering the alterations that will have to be made in-store.
“These regulations will require a significant investment during a difficult trading climate and follow hard on the heels of the significant costs retailers are already absorbing following the implementation of the Licensing (Scotland) Act 2005.
“For all retail business to comply with the regulations will be an operational and a financial burden. This burden will only be increased if the implementation timeframe is insufficient. We therefore recommend that the implementation dates should be extended to October 2012 for large stores and October 2014 for small stores.”
SGF Asks Retailers for Evidence on the Impact of the National Minimum Wage
6 July 2010
The Scottish Grocers Federation (SGF) is asking local shops across Scotland to provide the evidence needed to prove the damaging impact of future increases in National Minimum Wage (NMW)
SGF is encouraging retailers to return a questionnaire that investigates the impact of past increases on job creation, hours and investment in business growth. The findings will feed into SGF’s submission to the Low Pay Commission.
SGF Chief Executive John Drummond said: “Each year we provide written evidence to the Low Pay Commission that reflects the impact the NMW has on the industry. We need local shops to complete the questionnaire in order to build our case for a freeze in minimum wage.”
The Coalition Government in its remit to the Low Pay Commission has asked it to take into account the impact of the NMW on the competitiveness of small firms in this year’s consultation.
The Low Pay Commission is gathering evidence now. The deadline for submissions to their consultation is September 10th and a recommendation will be made to Government by the end of February 2011.
SGF Urges MSPs to Consider Alternative Pricing Mechanisms to Address Alcohol Problems
5 July 2010
As the Scottish Parliament breaks for the summer recess and the debate surrounding alcohol continues to dominate the political landscape, the Scottish Grocers’ Federation (SGF) is urging MSPs to consider alternative pricing mechanisms to minimum pricing.
Labour and the Conservatives voted against minimum pricing, one of the main planks of the Alcohol etc (Scotland) Bill at the Stage 1 debate. The principle role at Stage 2 is for the Health and Sport Committee to consider and dispose of amendments. Stage 2 will commence when MSPs return to Parliament in September. It is at this stage that amendments offering alternatives to minimum pricing are likely to be lodged by the opposition parties.
John Drummond, Chief Executive of SGF said:
“We understand politicians’ concerns about minimum pricing. Not only would it penalise responsible drinkers but could lead to an increase in cross border and internet shopping which would be particularly damaging for small shops.
“However, if minimum pricing is removed from the Bill and an alternative pricing mechanism is not introduced there will be nothing to stop supermarkets selling a case of beer for as low as £5.00. As well as encouraging and promoting irresponsible drinking it would make it impossible for small shops to compete with the supermarkets which was not the intention of the Bill
“SGF has suggested MSPs consider ending the practice of below cost selling, a form of promotion used by many supermarkets. The UK Government is considering ways to introduce a ban on below cost alcohol. A similar mechanism in Scotland would ensure a level playing field and avoid the unintended consequences that minimum unit pricing would bring.”
Scottish Grocers Federation