Alcohol tax hike among likely reform recommendations

Photo / BOP Times

An increase in excise tax is likely to be among recommendations of a report into alcohol to be released next week, Finance Minister Bill English says.

Kiwiblog reported today the Law Commission report, Review of the Regulatory Framework for the Sale and Supply of Liquor, due to be released next Tuesday, would make a number of recommendations including:

* A 50 per cent increase in the excise tax on alcohol,

* no sale of liquor at off licences after 10pm,

* no one allowed to enter bars and nightclubs after 2am, and

* increasing the drinking age from 18 to 20.

Kiwiblog claimed to have been leaked the details of the report.

Justice Minister Simon Power said he was not responsible for the leak and would not comment until the report was tabled. He said the Government response would follow soon after the report.

Mr English said he understood the report did advocate the increase in excise tax.

"All of those possibilities have been suggested by various people, anti-smoking groups and the Maori Party want us to do something about tobacco excise... I understand it (the report) is likely to advocate an increase in excise tax. The Government will deal with those issues as they arise," he told reporters.

Labour MP Lianne Dalziel said she could not comment on the report until it was released but said she backed the "five-plus solution" being promoted by head of New Zealand's National Addiction Centre, Professor Doug Sellman.

The solution recommended raising alcohol prices, raising the purchase age, reducing alcohol accessibility, reducing marketing and advertising, and increasing drink-driving counter-measures, plus increased treatment opportunities for heavy drinkers.

All those ideas have also been raised by Law Commission president Sir Geoffrey Palmer.

Meanwhile, in Parliament Associate Health Minister Peter Dunne faced a grilling for refusing to meet Dr Sellman but agreeing to attend liquor industry functions.

Responding to Progress Party leader Jim Anderton's questions, Mr Dunne said during 2009 he met representatives of the liquor industry four times: on May 5, on May 27, on August 5 and on September 7.

"I also attended three functions sponsored by representatives of the wider liquor and hospitality industries. In contrast, I met with officials and non-industry-related groups on a mere 41 occasions."

Mr Anderton asked if Mr Dunne had any concerns about the perception "that he was overindulgent to the liquor lobby by meeting with them four times in four months and being hosted by them on a further three occasions over six months?"

Mr Dunne said overall he had not met many times with the industry. He said he did not need to meet Prof Sellman as his views - such as that alcohol should be treated as an illegal drug - were well known.

However, Mr Dunne said he was unaware of the "five plus" idea.

Speaking to journalists, Mr Dunne defended being hosted by the industry at a rugby game: "I am a rugby fanatic and I go to a rugby match to watch the All Blacks beat the Wallabies any time."

- NZPA