THE president of the Scottish Wholesale Association has described the new Alcohol Wholesaler Registration Scheme (AWRS) as “very welcome”.

Under the legislation, HM Revenue & Customs will assess whether wholesalers are “fit and proper”, with those failing to meet the test unable to trade in alcohol and facing fines if they continue. Retailers will be required to buy from approved wholesalers from April 2017.

Eddie Lynagh told his association’s annual conference that the AWRS would go a long way to improving policing of the industry.

“It is now illegal to wholesale alcohol in the UK if you have not applied for registration,” he said. “For me it ticks a lot of boxes. Was it required? Yes. Will it work? Yes, I think it will.”

Lynagh, area manager for Booker Greenock, continued: “We, as an association, now have to communicate with all our members as to the implications. For example, if someone regularly overbuys on alcohol promotions to gain a better price and sells on to his friends – then he is wholesaling and is in breach of the act.”

The president also touched on the National Living Wage which came into effect in April, pointing to a study by Capital Economics which revealed the new £7.20 rate for over-25s would add 0.7 per cent to employers’ payroll costs. The study suggested the wholesale food and drink industry would be one of the sectors hardest hit.

Lynagh said it was “early days” for the legislation but urged members to keep providing feedback on their experiences.