Government must reconsider price of alcohol

News that alcohol is cheaper than bottled water undermines the Government’s entire approach to alcohol reform, and must not be ignored, the Green Party said today.

“Raising the price of alcohol is without doubt the single most effective way to reduce the harm caused by alcohol and binge drinking. By prematurely ruling this issue out, Minister of Justice Simon Power has hamstrung his own reform package,” Green Party alcohol spokesperson Sue Kedgley said.

Work by Otago University Public Health researchers published in the New Zealand Medical Journal today found that alcohol was cheaper than bottled water and only slightly more expensive than milk.

Earlier in the year Mr Power had ruled out raising the price of alcohol saying that it was extremely unlikely to be part of reforms to address New Zealand’s heavy drinking culture.

“We’re calling on Minister Power to reconsider his decision on increasing the price of liquor,” Ms Kedgley said.

“Faced with this evidence, the Government must move to increase the price of alcohol—whether by increasing the tax on alcohol, or setting a minimum price.”

Ms Kedgley said the Law Commission had recommended excise tax should be increased by 50 percent, and argued that such a move would have net economic and health benefits.

“This move would minimise harm caused by alcohol to all New Zealanders, especially to those who are most at risk: heavy and young drinkers.
“Amendments to address price and advertising can easily be added to the legislation and the Green Party will be seeking to do this,” Ms Kedgley said.