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Saturday, April 19, 2008

Minimum pricing for alcohol? The debate hots up..

As Government ministers consider options for setting minimum prices on alcohol, the debate is hotting up amongst the industry and public alike as to whether such a move would make any difference, or is  politically acceptable. This month the Daily Telegraph suggested that preparations to bring in minumum pricing are underway.  However it understood that minsters are still only considering such options and awaiting further reviews as to the effectiveness and impacts of such policies.

The government would be required to make an exception to the Competition Act of 1998 which would require "exceptional and compelling reasons for public policy". The Office of Fair Trading has indicated that this would be possible given the extent of alcohol realated harm in the UK and the criticism surrounding supermarkets for continuing to sell alcohol as 'loss leaders'.  Naturally the idea is not short of critics.  Rehearsing the familiar arguments against price rises, Gavin Partington of the Wine & Spirit Trade Association, in an artcicle published in Off license News said:

“If pricing was an issue then why aren’t there more problems in other countries with lower taxes on alcohol?

We’ve never denied there’s a problem with alcohol abuse, but it’s a minority of people. The vast majority, who drink sensibly in the comfort of their own homes, should not be punished.”

A page on the BBC website titled Should there be a minimum price for alcohol? also attracted a large volume of comments with a wide range of views.

 

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