Importance of Beer to the European Economy, Ernst and Young engagement

Speech delivered on Thu 11th May 2006

Beer, as Benjamin Franklin once said, is proof that God loves us and wants us to be happy.

Whether he had a hot-line to the Lord is a matter for theological debate.

But he was right about one thing.

Human beings from every corner of the globe enjoy a good beer - at least if recent statistics are anything to go by!

European breweries alone produce almost 416 hectolitres of beer every year, of which 23 million hectolitres are sent abroad.

But now even the less religiously-inclined have a reason to be cheerful about putting away a pint or two.

Patriotism.

Few will realise how significant Europe's beer sector is to our economy, with a value added contribution of 57.5 billion euros

• equivalent to the GDP of the Austrian economy in the last quarter of 2004.

In fact, they may be surprised to learn that Europe is the biggest beer producer in the world - ahead of both China and the US - according to a groundbreaking study conducted by Ernst & Young.

It will make especially cheerful reading for EU policy makers, struggling to turn Lisbon Goals of wealth, competitiveness and job creation from dream to reality.

The report finds that European breweries provide direct employment for 164,000 Europeans.

Many of these jobs are in Europe's 3000 Small and Medium Sized Enterprises and microbreweries which are integral to ensuring regional development and prosperity.

Particularly for poorer rural Constituencies like my own, the South-West of England, where family breweries like St Austell's are a major source of local employment and an important part of the region's cultural heritage.

However, the employment benefits do not end there.

The report also finds that for each job offered in the brewing sector:

• one job is generated in retail

• two in the supply sectors

• and almost twelve in the hospitality sector

to the tune of 2.6 million jobs across the European Union.

While the tax revenue national governments receive from the production and sale of beer amounts to 39 billion euros - more than the total annual government expenditure of Poland.

All good news for the EU, whose "think small first" policy aims to boost SMEs through simpler regulation and better, well funded, support mechanisms.

Liberals and Democrats have been fully behind the campaign to ensure that adequate financial support to boost SMEs is included in the forthcoming Financial Perspectives.

With such an impact on wealth and job creation in Europe, it is clear that brewers can help provide a model for other industries wishing to boost their competitiveness.

I would now like to hand you over now to the Brewers of Europe, who represent the national brewing associations of 22 EU countries, to discuss the findings of the report and their implications in more detail

Ladies and Gentleman, your glasses please....