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Alcohol Excise—Industry Input

Wednesday 25 August 2010 Hansard source (external site)

Katene12. RAHUI KATENE (Māori Party—Te Tai Tonga) Link to this
to the Minister of Justice

What role did the alcohol industry play in ruling out an increase in excise duty, bearing in mind the Ministry of Justice analysis notes “a rule of thumb is that a 10 percent price rise results in an approximately 5 percent decrease in consumption”?

DunneHon PETER DUNNE (Minister of Revenue) Link to this

None.

KateneRahui Katene Link to this

Does the Minister agree with this morning’s Dominion Post that “The Government, as it did when deciding not to reduce the drink-drive level, has opted for the immediately popular course rather than what is best for a country with too many binge-drinkers.”; if not, how will the serious harm caused by binge drinking be addressed?

DunneHon PETER DUNNE Link to this

No, I do not agree with the Dominion Post. I note that the Government has adopted 126 of 153 recommendations from the Law Commission. It is making changes to the laws regarding bar hours, off-licence trading, liquor advertising, and the minimum purchase age. I think those changes would constitute a pretty comprehensive response to the situation.

KateneRahui Katene Link to this

Does the Minister stand by his comment that “the pendulum has swung too far towards relaxation of alcohol laws.”; if so, how can the Government justify the continued liquor exemptions for canteens run by the police, the Fire Service, and the Defence Force, permanent charter clubs, and Cosmopolitan and Working Men’s Clubs?

DunneHon PETER DUNNE Link to this

I cannot comment on the Minister’s reported comment, although I personally would agree with it. With regard to the second part of the member’s question, the focus of the Government’s response to the Law Commission’s report has been to deal with those areas that are deemed to be of prime concern in terms of the binge drinking habits of young New Zealanders. The circumstances that she mentioned simply do not relate to those situations.

DalzielHon Lianne Dalziel Link to this

Does he agree that a minimum price regime would directly target cheap alcohol, which is preferred by heavy and young drinkers, without having a big effect on moderate drinkers; if so, why did he not include that in the package yesterday; if not, why did he say so in the Cabinet paper?

DunneHon PETER DUNNE Link to this

The Government has responded to what is seen as one of the prime areas of alcohol use by young binge-drinkers, the ready-to-drink, or RTD, mixtures, with changes to the maximum alcohol content and to the number of standard drinks in a container. We see that as being an appropriate response to the circumstances that the member has outlined.

DalzielHon Lianne Dalziel Link to this

I raise a point of order, Mr Speaker. The question specifically referred to targeting cheap alcohol, which is preferred by heavy and young drinkers. The Minister turned to a completely different subject. My question was on price, which was related to the primary question; his answer had nothing to do with price, at all.

SmithMr SPEAKER Link to this

I will hear the Hon Peter Dunne.

DunneHon PETER DUNNE Link to this

The point I was alluding to in the answer was that ready-to-drinks are a common drink used by young people. By changing the alcohol content and restricting the size one will have an impact on price, which was the point the member was raising in her question.

SmithMr SPEAKER Link to this

I confess that I did not pick up the exact intent of the member’s question. Because the member was serious about her question, I will invite her to repeat it so that we can all hear it very carefully.

DalzielHon Lianne Dalziel Link to this

Does he agree that a minimum price regime would directly target cheap alcohol, which is preferred by heavy and young drinkers, without having a big effect on moderate drinkers; if so, why did he not include that in the package he announced; if not, why does he say so in the Cabinet paper?

DunneHon PETER DUNNE Link to this

No. With regard to the second part of the question, a number of international studies are around at the moment—and I refer the member to what is going on in Scotland at this stage—where the jury is still out on the impact of those measures.

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