Alcopop tax 'will stem teen binges

Renee Viellaris and Greg Stolz
April 28, 2008 12:00am

PUBS and clubs face audits by the Rudd Government if they profit from a new excise on pre-mixed alcoholic drinks.
The Government has increased its excise on alcopops – alcoholic beverages marketed at teenagers – and other ready-to-drink products from $39 a litre of alcohol to $67 a litre.
Stakeholders admit some pubs and clubs may now start increasing their prices, although the excise only applies to products that were transferred from factories at midnight yesterday, and not current stock.
However hoteliers have welcomed a new 100 per cent tax increase on pre-mixed alcoholic drinks, saying it will stop young people drinking them "like cordial".
Prices are expected to increase by up to $1.30, and are now at the same excise rates as bottled spirits. Almost $2 billion is expected to be raised from the move, with some money directed at preventative health strategies.
A spokesman for Health Minister Nicola Roxon said pubs and clubs would be caught out by existing audits if they tried to profit from the new measures.
Australian Drug Foundation chief executive John Rogerson applauded the measure, saying increasing the cost of alcohol reduced excessive consumption, especially by teenagers.
Mr Rogerson told The Courier-Mail some pubs and clubs might try to increase prices prematurely, but should refrain from taking the step.
Distilled Spirits Industry Council of Australia executive director Gordon Boderick said the tax was unfair, given one of their biggest markets was ready-to-drink dark spirits, generally bought by adult men.
Queensland Hotels Association Gold Coast chairman Tony Condon said the tax increase would "definitely slow the kids down".
"A lot of them have been drinking it like it's lolly water or cordial and all of a sudden, they're off their tree," he said.
"With the tax doubling, pubs and clubs will have no choice but to pass the cost on and I think it will definitely have an impact. I think it's a good thing. The kids might be content to have a few beers now instead of a half a dozen bourbons before they go out."
However a group of young people drinking pre-mixed bourbon and cola in a park at Currumbin on the Gold Coast yesterday said the tax increase would not stop them or their friends buying the drinks.
"I don't think it will," Alicia Wiggins, 23, said.
"It's convenient and it's tasty and I think we'll just find the extra money."
Her friend, Krystal Knight, 30, said high taxes had not stopped her smoking "and I don't think it's going to stop me drinking bourbon and coke".
Ms Roxon told Channel 9's Sunday program she thought the former Howard government contributed to teen binge drinking.
Opposition Leader Brendan Nelson dismissed the claim, saying: "It is an outrageous slur on the previous government for anybody to suggest that by not further increasing the excise or tax on these alcoholic drinks, that that in some way has led to their abuse."

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