The BBC's John Andrew: "The industry says only a cut in duty will stop pubs closing"

The Brewers and Licensed Retailers Association says its study shows that cheap continental lager brought into the UK and re-sold is "cheating the country out of millions of pounds in taxes, threatening breweries, pubs and jobs".

The BLRA figures, based on its own undercover surveillance, suggest that 91,000 vans loaded with budget alcohol entered the country, equivalent to 250 vans a day.

'75% illegally re-sold'

The total quantity of beer imported in this way was 1.5 million pints a day - some of it imported for private consumption by tourists and therefore legally exempt from import duty.

But the association estimates that 75% of this beer is illegally re-sold by smugglers who are taking advantage of the difference in French duty, standing at 4p a pint, compared with the UK's 32p, rising to 33p from 1 January 1999.

A spokesman for the BLRA said it would be handing its findings to Customs and Excise and hoped it would spur the government to take action.

"Five years into the single market and the flood of beer coming across the Channel is still increasing," the spokesman said.

'Cut beer duty'

"The smugglers are well-organised and are cheating the country out of millions of pounds in taxes, threatening breweries, pubs and jobs in the UK.

"The 1 January tax increase will simply give them more of an incentive. The government must cut beer duty to cut the ground from under them."

London is the favoured destination of bootleggers, with as many as 11,680 van-loads entering the capital during 1998, followed by Manchester and Sheffield which receive up to 7000 loads.