Drinks bosses have condemned plans for minimum pricing on alcohol as MSPs voted against the Scottish Government.
Health Secretary Nicola Sturgeon has insisted that European laws do not prevent ministers from bringing in such a measure. She stressed minimum pricing could help tackle Scotland's drink problem, which costs the country £2.25 billion a year.
After Holyrood debated the issue MSPs rejected a Government amendment seeking support for the minimum pricing policy by 45 votes to 58.
However ,they did not take the opportunity to totally reject the proposal, as a Tory motion opposed to minimum pricing was also defeated by 28 votes to 74 with one abstention.
A spokesman for SABMiller - one of the world's biggest brewers whose brands include Grolsch and Peroni beers - hit out at the Government plans.
He claimed that minimum pricing was "based on many flawed assumptions, one of which is that people who buy less expensive alcohol do so for the purpose of abusing it".
The spokesman added: "All indicators are that only a small minority of the population drinks harmfully, yet minimum pricing unfairly penalises the law-abiding, sensible majority."
The drinks firm also said legal advice it had taken indicated there was "a risk that any minimum pricing measures in Scotland would conflict with or undermine proposals currently under consideration in the UK and the EU".
The advice added: "A harmonised EU-wide approach to this issue is clearly preferable to proposals which are limited to Scotland, are legally flawed and lack efficacy and/or proportionality."
Campbell Evans, of The Scotch Whisky Association, said there was now a "growing consensus that major question marks hang over the legality and effectiveness of minimum pricing".
He added: "That the Scottish Government continues to ignore the damage minimum pricing will cause Scotch whisky is deeply worrying. Distillers are clear that this policy will harm Scotch whisky at home and overseas."
During the debate Ms Sturgeon conceded there would be challenges in introducing a minimum price for alcohol.
She said: "We have always said there are challenges to be overcome in introducing minimum pricing. To be compatible with EU law a minimum price would need to be proportionate, non-discriminatory and achieve a clear health benefit."
But she insisted: "It is emphatically not the case that the EU prohibits a policy of minimum pricing."
She said that the Government's plans for a minimum price per unit for alcohol were supported both in Scotland and abroad. She highlighted research carried out for the SNP Government by experts at Sheffield University, who found minimum pricing could prevent thousands of crimes, illnesses and deaths and could save Scotland almost £1 billion over 10 years.
Ms Sturgeon also claimed many drinks would not be affected by the plans, saying: "The greatest impact would be on strong, cheap alcohol, which is favoured by harmful and hazardous drinkers, and not on mainstream and premium products."
However Tory deputy leader Murdo Fraser hit out: "A policy of minimum pricing for alcohol is wrong because it will penalise responsible drinkers, may well be illegal under EU rules and will cost jobs in our vital spirits industry."
Meanwhile Liberal Democrat justice spokesman Robert Brown said the policy was "badly targeted, irrelevant to the aim of changing culture and probably illegal".
Labour, whose support could be crucial if the Government is to get its minimum pricing proposals through Holyrood, have yet to take a stance on the issue.
New health spokeswoman Jackie Baillie said no option had been "closed down" on minimum pricing. Ms Baillie said: "This is a serious issue that deserves thoughtful consideration and I intend to do it justice."
Last updated: 05 November 2009, 23:30
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