SETBACK TO PLANS TO OUTLAW CHEAP ALCOHOL
SETBACK TO PLANS TO OUTLAW CHEAP ALCOHOL
The ParliamentaryYearbook has been monitoring progress in Government policy relating to alcohol
misuse for major features on the topic in the next edition of the
publication
In
evidence to MPs last week, the Office of Fair Trading warned that the
Government’s plans to outlaw cheap alcohol could result in supermarkets being
encouraged to sell more rather than less drink.
The Government’s alcohol strategy sets out proposals to crack down on the
'binge drinking' culture in our country; cut the alcohol-fuelled violence and
disorder that blights too many of our communities; and slash the number of
people drinking to damaging levels.
The strategy includes
commitments to:
·
introduce
a minimum unit price for alcohol
·
consult
on a ban on the sale of multi-buy alcohol discounting
·
introduce
stronger powers for local areas to control the density of licensed premises
including making the impact on health a consideration for this
·
pilot
innovative sobriety schemes to challenge alcohol-related offending
Figures
today show an ever-growing cost of alcohol to the NHS which currently stands at
£2.7bn a year, including £1bn on accident and emergency services. £2.7bn
equates to £90 for every taxpayer in the country. This is part of a wider cost
to society from alcohol of between £17 billion and £22 billion per annum. In
2010/11 alone there were 200,000 hospital admissions with a primary
alcohol-related diagnosis, 40 per cent higher than in 2002/03. The number of
patients admitted with acute intoxification has more than doubled to 18,500
since 2002/03.
However
the Office of Fair Trading is concerned that shops will have an incentive to
promote their cheapest range of drinks because they will benefit from higher
margins on these products. The watchdog said that supermarkets and the drinks
industry would gain additional profit from every unit of low-cost alcohol that
they sell.
The OFT
is also worried that the Government’s interference in prices will set a
dangerous precedent to undermine free market forces. It found that similar
price controls in France and
Ireland
meant that had a higher cost of living.
The
watchdog said in its evidence:
“By
legitimising intervention to control prices in a competitive market, it will be
harder for the Government to resist calls for similar measures in other parts
of the retail sector in future.”
The OFT
also believes that a simple tax per unit on items sold would be better than
minimum pricing since this would not encourage supermarkets to sell more alcohol.
The House of Commons Health Select
Committee in its report on the Government’s Alcohol Strategy published last
month supported the decision to introduce a minimum price for alcohol. On this
question, the Committee Chair, the Rt Hon Stephen Dorrell MP, said:
"The Committee
supports the decision to introduce a minimum unit price for alcohol , but the
Government needs to recognise that setting the price is not a one-off event. A
transparent process must be put in place in order to ensure that the price
level is evidence-based and is monitored over time to assess its effectiveness.
“We also recommend
that there should be a 'sunset clause' on the implementation of a minimum price
so that it only remains in place if it is shown to be effective in reducing
harmful drinking."
"Striking the
right balance on alcohol consumption is not straight forward. Most people enjoy
alcohol without evidence of significant harm to their health, yet it is not
possible to define what is a generally safe level of consumption as alcohol
affects different people in different ways. Individuals who drink alcohol and
the companies which sell it have an obligation to do so in a way which respects
the rights and interests of their fellow citizens," adds Stephen Dorrell.
The Home Office is due to give more detail on the plans for minimum
pricing later in the year and the Parliamentary Yearbook will continue to
report on Government action to curb alcohol misuse over the months ahead.
22nd
August 2012
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