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WEDNESDAY, DECEMBER 8, 1976

SALE OF LOWER ALCOHOLIC CONTENT BRANDY

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THE ACTING DIRECTOR OF COMMERCE AND INDUSTRY. THE HON. BILL DORWARD, MOVED THE SECOND READING OF THE DUTIABLE COMMODITIES (AMENDMENT) (NO. 2) BILL 1976 IN LEGISLATIVE COUNCIL TODAY.

THE PURPOSE OF THIS BILL IS TO PERMIT THE SALE IN HONG KONG OF BRANDY HAVING A MINIMUM STRENGTH OF 30 DEGREES UNDER-PROOF WHICH REPRESENTS, IN OTHER WORDS, AN ALCOHOLIC CONTENT OF 40 PER CENT BY VOLUME.

THE PRESENT PRESCRIBED MINIMUM STRENGTH OF ORDINARY BRANDY, LAID DOWN IN SECTION 53 OF THE DUTIABLE COMMODITIES ORDINANCE, IS 25 DEGREES UNDER-PROOF OR 43 PER CENT ALCOHOL BY VOLUME,

+ I REFER TO ORDINARY BRANDY BECAUSE BRANDY WHICH, IN THE OPINION OF THE DIRECTOR OF COMMERCE AND INDUSTRY. IS VERY OLD LIQUEUR BRANDY MAY BE IMPORTED BELOW THIS STRENTH. INDEED FOR SUCH BRANDY WHICH IN PRACTICE IS TAKEN AS VSOP OR BETTER, NO MINIMUM IS PRESCRIBED,+ MR. DORWARD SAID,

HE ADDED THAT THE EFFECT OF THE LAW AS IT NOW STOOD WAS THAT ANY BRANDY WHICH WAS NOT OF A BETTER QUALITY THAN 'THREE STAR' AND WAS OF A STRENGTH BELOW 25 DEGREES UNDER- PROOF WAS CONSIDERED ADULTERATED LIQUOR'. IT WAS THUS AN OFFENCE UNDER SECTION 61(1) OF THE DUTIABLE COMMODITIES ORDINANCE TO IMPORT, SELL, SUPPLY OR DEAL IN IT.

+ THE PRESENT HONG KONG MINIMUM WAS FIRST LAID DOWN IN 1898 UNDER THE LIQUOR LICENSING ORDINANCE, AN ADAPTATION OF AN ENGLISH LAW WHICH WAS MODIFIED MANY YEARS AGO. TODAY MOST, IF NOT ALL, BRANDY IMPORTING COUNTRIES ALLOW IMPORTS AT THE NOW PROPOSED MINIMUM STANDARD STRENGTH OF 40 PER CENT ALCOHOL BY VOLUME. BRANDY PRODUCING COUNTRIES HAVE REQUESTED THAT THE HONG KONG LEGISLATION BE AMENDED TO CONFORM TO GENERAL WORLD STANDARDS. IT IS NOW PROPOSED TO ACCEDE TO THESE REQUESTS, + MR. DORWARD SAID.

+ THE PROPOSED AMENDMENT WOULD MEAN THAT SOME ORDINARY BRANDY SOLD IN HONG KONG MIGHT BE A LITTLE WEAKER. SUCH BRANDY HAS, HOWEVER, A RELATIVELY SMALL SHARE OF THE MARKET: ABOUT 15 PER CENT COMPARED WITH THE VERY OLD LIQUEUR BRANDIES WHICH HAVE 85 PER CENT OF THE MARKET.

+ IF THIS BILL IS PASSED INTO LAW THERE WOULD BE NO LOSS OF REVENUE, WHICH IS ASSESSED BY VOLUME RATHER THAN ALCOHOL IC STRENGTH, AND THE MAIN EFFECT WOULD BE TO BRING HONG KONG INTO LINE WITH GENERAL INTERNATIONAL PRACTICE AND OPEN THE MARKET TO BRANDIES WHICH HAVE HITHERTO BEEN BARRED, HE ADDED.

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