Fury as Portuguese government diverts millions from Douro

on 25/05/11 at 9:21 am

Industry

Funds worth as much as €8 million held by the Port and Douro Wines Institute (IVDP) have been transferred to the Portuguese government, according to Paul Symington, chairman of Symington Family Estates.

Speaking to the drinks business, Symington (left) said: “Just over eight weeks ago, as a direct result of the financial crisis, the government stole €8m from the Port Wine Institute, which is 100% financed by the Port trade through an additional tax, which costs our company alone over €1m each year.”

Continuing, he said: “Because all institutions are obliged by the government not to spend over 10% of their budget each year, reserves have built up.

“The funds are used for running the labs, research, quality control, and some generic promotions, and we don’t resent that, but the reserve has built up to over €8m and now the government has run out of money so all reserves in public institutions have been transferred to the treasury – we won’t see this money again, €8m has just been bloody well swiped.”

{Full story}

Enhanced by Zemanta