Alcopop tax rise to battle binge drinking

The Government will almost double the tax on pre-mixed alcoholic drinks as it blames John Howard for the youth binge-drinking scourge.

The tax will go up from $39 per litre of alcohol to $67 per litre from today – with pubs and clubs likely to significantly increase the cost of "alcopop" drinks to cover the rise.

A senior government source said the cost of RTDs (ready-to-drink products) was likely to increase by $1 a bottle. Queensland pubs and clubs charge, on average, about $8 per bottle, but they can range from $5 specials to $12.

The Government is expected to raise $2 billion from the tax hike, which will be put into a preventative health program.

Prime Minister Kevin Rudd expressed concern recently at the spike in binge-drinking – particularly among young women – and promised a major initiative.

'Howard to blame'

Federal Health Minister Nicola Roxon blamed the former Howard government for the rise in teenage binge drinking.

Ms Roxon said the decision to cut taxes on premixed alcoholic drinks eight years ago helped fuel the surge in excessive drinking by young people, particularly teenage girls.

The Rudd government overnight reversed the change, virtually doubling the excise on alcopops from midnight, pushing the cost of the drinks up by between 30 cents and $1.30 a bottle.

Ms Roxon said she did not know why the Howard government had cut the excise in the first place.

Survey demands action

The Government moved quickly after the release yesterday of the 2007 National Drug Strategy Household Survey, which highlighted a disturbing pattern of alcohol consumption by Australian teenage girls.

The survey found that:

• Girls aged between 12 and 15 years were three times as likely as teenage boys the same age to consume alcohol at least once a week.

• Almost twice as many girls aged 14-19 as boys were consuming alcohol at a level that had a high risk of long-term harm.

• Teenage girls were more likely than their male counterparts to have tried marijuana, amphetamines and cocaine.

Recent Australian Bureau of Statistics data shows RTD consumption continues to grow rapidly – more than 15 per cent in the past year compared with two per cent for overall alcohol consumption.

The data also shows that young people are more likely to drink RTDs, and teenage girls in particular are introduced to alcohol through RTDs.

Health groups welcome action

The Australian Drug Foundation described the move as a big step in the right direction.

"This tax fixes a problem that started with the introduction of the GST and shows that the government is serious about tackling alcohol problems in our community," foundation chief executive officer John Rogerson said.

Volumetric taxation was one of the most effective ways to reduce excessive consumption, he said.

The Public Health Association of Australia (PHA) said the price rise would have a major impact on drinking among young people, especially young women.

Alcopops were the first drink for as many as 60 per cent of girls, PHA president Mike Daube said.

"There is now dramatic evidence showing that young women are out-drinking their male counterparts - and unfortunately many of them drink to get drunk," Professor Daube said.

"This increase will make a real dent in one of our biggest current social problems."

Government 'shocked'

Health Minister Nicola Roxon was shocked by the survey statistics and said it was well-established that "alcopops" played a major role in hooking young girls into drinking.

"Something needs to be done to reduce the attractiveness of 'alcopops' to young girls and deliver a greater investment in preventative health," she said.

"Binge-drinking among young Australians is a real health risk that needs to be dealt with.

"And if we can tackle alcohol abuse at this formative age, then that will help us cut down alcohol abuse later in life as well."

The $27.31 per litre tax hike on the pre-mixed drinks would bring them into line with spirits and other alcohol and close a loophole from legislation introduced in 2000.

A senior government source said the revenue impact from the excise increase would be in excess of $2 billion.

Details of the Government's new preventative health measure and funding will be released when Treasurer Wayne Swan announces his first Budget on May 13.

The survey by the Australian Institute of Health and Welfare, last conducted in 2004, also found about 22 per cent of teens drank at least once a week.

Across all age groups, 82.9 per cent of Australians drank alcohol in the previous 12 months. In 1993, the rate was 77.9 per cent.

Sunday Mail