Gordon Brown's plans for combating fraud in the whisky industry have come under fire from an influential committee of MPs.

Announced in the pre-Budget report, the chancellor's proposal involves a narrow paper label being fixed to the closure of spirits bottles, to show that duty had been paid.

However, in its report published on Monday, the Scottish affairs select committee argued that there was little proof that such a scheme would work, while adversely affecting businesses.

"It is absolutely right that the government and Scotch whisky industry tackles the level of fraud in the industry," it said.

"However, we believe that the government's plans to introduce strip stamps are a response to the level of fraud that it estimates to be £600 million a year, meaning almost one in six bottles of spirits consumed in the UK not having borne UK duty.

"If the alternative estimate of barely a quarter of that were accepted, it could not but affect the government's view of the extent to which the costs of the strip stamp scheme were proportionate to the benefits - as it clearly did in 2002. 

"Until definitive figures are available, no estimate, whether from Customs or from the industry, can be accepted as accurate.

"For any government to introduce important measures which could have major implications for industry and employment, based on what could be inaccurate figures, might be considered precipitate to the point of being reckless."

After evidence from industry leaders, MPs identified four main flaws with the strip stamp scheme.  Particular and expensive machinery is needed for putting the stamps onto the bottles, a problem exacerbated by the stamps themselves being difficult to apply and easily ripped.

The stamps were found to be easily copied, while legitimate stamps could make counterfeit spirits appear genuine, argued the committee.

"Whatever the actual level of fraud in the spirits industry is, we accept absolutely that it will not disappear without appropriate action being taken," said the report.

"We are convinced that there has to be a better alternative to strip stamps; we are very far from convinced that the government has fully considered all possible alternatives."

The Treasury disagreed - warning it had to take fraud seriously.

"If there was a serious alternative that could deliver a similar impact on fraud, we would take it," said a spokesman. 

"But the simple fact is that through three years of detailed work with the industry no one has come up with such an alternative - and nor has the select committee in this report.

"We are now working closely with the industry on the implementation of tax stamps, and ways to reduce the costs for companies. We will consider the committee's report in this context."