Government rejects liquor tax hike

BY JOHN HARTEVELT

The ink has barely dried on the Law Commission's final report on alcohol and already the Government has rejected one of its key recommendations.

Justice Minister Simon Power this afternoon said it was "extremely unlikely" that the Government would move to raise excise tax as part of its alcohol reforms.

The Law Commission's report, tabled in parliament at midday, suggests a 50 percent in excise tax to push up the price of alcohol by an average 10 percent.

Law Commission president Sir Geoffrey Palmer said alcohol was being sold at "pocket-money prices".

"A can of beer or an RTD can be bought for one or two dollars in many retail outlets. This is less than we pay for bottled water," Sir Geoffrey said.

"One of the consequences of alcohol being promoted and sold at pocket-money prices is that we risk losing sight of its status as a legal drug, capable of causing serious harm to others."

Sir Geoffrey said a saturated alcohol market had led to intense competition and the over commercialisation of alcohol.

He also stressed that parliament should treat the Commission's recommendations as an integrated package rather than cherry picking the more politically palatable elements.

However, Mr Power has quickly dashed any hopes of that, rejecting immediately the excise tax proposal.

"It is extremely unlikely that the Government will move to raise excise tax as part of its alcohol reform agenda," Mr Power said this afternoon.

There would be a full outline of the Government's position on the report within weeks, he said.

"The commission's 153 recommendations require a considered response from the Government," Mr Power said.

"I have previously made it clear that legislative changes to alcohol laws are likely, and my intention is to deal with this before the end of 2011.

"The Government is carefully considering the report and the response is likely to be framed as regulatory in nature, with an emphasis on alcohol availability and licensing."

MORE REACTION

DB Breweries

DB Breweries' managing director Brian Blake said there aren't enough initiatives in the report aimed at tackling the misuse and abuse of alcohol.

"While we support some of the report's recommendations such as an alcohol regulatory authority and improved systems for the treatment of people with alcohol problems, the real focus should be on personal responsibility and accountability.

"Law change should target individuals who harm themselves or others. This includes irresponsible licensees and recidivist alcohol offenders who should be held accountable for their actions. "

Mr Blake said DB hoped to see the Government introduce changes that focused on individuals and the reduction of alcohol related harm rather than those which penalised the majority.

Alcohol Healthwatch

Alcohol Healthwatch director Rebecca Williams said the debate triggered by the Law Commission Review, represents the first significant opportunity in 20 years for individuals and communities to have their say on alcohol law reform.

Along with the New Zealand Drug Foundation, Alcohol Healthwatch has launched 'It's our turn to shout', an initiative designed to allow members of the public a say on alcohol laws.

Ms Williams said they would focus on changing the current environment, "which promotes heavy drinking and youth drinking".

New Zealand's liquor laws created and our adverse drinking culture, she said.

"Our increasingly lax liquor laws have led to a society awash with alcohol. There are bottle stores in almost every neighbourhood, cheap alcohol in supermarkets, and bars open all hours. The law allows the liquor industry to spend millions marketing seductive products to young people. Is it any wonder we have a problem?

Ms Williams said they will use social media like Facebook and Twitter to generate public discussion.

"Each and every one of us is affected by alcohol, either by our own drinking or someone else's. Our booze-soaked culture is everybody's problem, and now is our chance to shout about it."

Alcohol Advisory Council

The Alcohol Advisory Council said the recommendations were carefully constructed and target those who drink in a harmful way while designed to have minimal impact on those who drink moderately.

"We support a re-write of the Sale of Liquor Act with the primary aim of the new Act to reduce alcohol-related harm," said ALAC CEO Gerard Vaughan. "We believe this set of complementary proposals provides a firm platform for an Act that can deliver on that primary objective."

Mr Vaughan said ALAC especially welcomed measures that would address the problem of really cheap alcohol, the wide availability and promotion of alcohol, and the provisions giving communities a say about the way alcohol was sold in their neighbourhood.

Mr Vaughan said some groups claimed that those who experienced problems with alcohol were only a small group of the population and that the measures proposed would unfairly impact on the vast majority of New Zealanders who drank moderately.

"In fact, a significant number, round 25 percent of drinkers, drink in a harmful way," he said. "Also these measures are aimed at those who drink in a problematic way but designed to have minimal impact on those who drink moderately."

Youth politicians

In a rare show of unity, the youth wings of several of the main political parties have united in opposition to the proposal to raise the drinking age.

The youth wings of the National, Labour, Green and ACT parties said it was unfair to target all 18 and 19 year olds, rather than problem drinkers specifically.

The group was also opposed to early closing times.

Young Greens spokesperson Zachary Dorner said: "Raising the drinking age has more to do with pointing the finger at young people than solving the real issues.

Group spokesperson Jenna Raeburn said they accepted there were problems caused by alcohol and would lend their support to some proposals.

"But increasing the purchase age is not one of them. Criminalising 140,000 18 and 19 year olds is the wrong answer."

National addiction centre

National Addiction Centre director Doug Sellman described the final report as a "tour de force".

He expected it to deliver a major change to the alcohol market with the heavy drinking culture brought under greater control and "gradually dismantled".
 
"The Law Commission is to be congratulated for such a courageous stand for rationality and evidence against some of the fiercest lobbying in the country  the lobbying of the alcohol industry including the alcohol advertising industry," Professor Sellman said.
 
The recognition that alcohol is a drug which has the potential for great harm was significant, he said.

- © Fairfax NZ News