Liquor price rise punishes everyone - Act
Wed, 04 Jul 2012 8:56a.m.
Raising the price of liquor would penalise everyone who buys a drink and boost liquor company profits, ACT leader John Banks says.
He's urging MPs to reject a Labour Party amendment to the Alcohol Law Reform bill which would give the minister of justice the power to bring in minimum pricing - something the Government has been reluctant to consider.
Justice spokesman Charles Chauvel says a price hike is the only way to curb binge drinking and without it the bill won't have an impact on the problem.
Mr Banks, a Government ally, says it would punish responsible drinkers.
"A minimum price is not a tax," he said.
"All the additional revenue from a price increase will flow straight out of consumers' pockets into the hands of liquor companies and retailers."
Mr Banks says problem drinkers are a group least responsive to price increases.
"We do have an issue of problem drinking in New Zealand - but punishing everyone is not the way to go about solving it."
Prime Minister John Key doesn't think a minimum price would be effective.
"They've tried it in Scandinavia, it's very expensive there and people still get wasted," he said this week.
Justice Minister Judith Collins has told her officials to look at minimum pricing regimes in other countries so she can think about whether they would work in New Zealand, but she doesn't seem keen on the idea either.
The bill will be back in parliament later this month for its final stages.
It will bring in a raft of changes to accessibility and new rules about the way liquor is sold, but it doesn't touch the price of alcohol.
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4/07/2012 9:36:20 p.m.
Charles Chauvel says a price hike is the only way to curb binge
does this unelected self appointed clown not think that putting the price of plonk up will change anything , make your own cheaper better and no tax ..might be a better business than growing dope ,or will he up the price of sugar as well ...they just do not have the ability to think things through
4/07/2012 5:42:13 p.m.
Craig Young wrote:
I'm a teetotaller and don't drink alcohol anyway. Exactly how would a price rise in a strictly optional commodity whose consumption drops with price rises affect me, Mr Banks? And one is entitled to ask how much liquor corporates donated to your party at the last general election...
4/07/2012 2:12:20 p.m.
Far be it for me to correct an ACT mp's understanding of economics, but if liquor companies already charge the market price for the RTDs and discount alcohol, then if the price is set above the equilibrium the liquor companies will sell less than they do now and make less money.
Which is possibly why our beloved PM is also opposed to minimum prices, him "blindly" owning a wine label and all.
Between political party donors and personal interests, it'd be amazing if this parliament brought in minimum pricing, and a major blow for National. But you never know - didn't a teenager from a rich family die from binge drinking recently? Maybe a right-wing MP will have their conscience pricked because it affected someone they knew (Tui ad here).
4/07/2012 10:34:22 a.m.
i hate booze you dont need it . but i don't care about the bill . what i care about is those whom want prices to go up will not get their way . why you say because john key owns winarys and has shares in the industry . and simply that's the only reason that's plain wrong .
4/07/2012 9:53:46 a.m.
Why not teach people to how to make beer/wine in the last years of high school?
Then, if they want to drink...they can make it and they know how much it cost them. (Also how long it takes.)
This may help understand what they are doing in there lives and cost...
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