News

AUS: Health agency warns against minimum pricing

Most popular

The just-drinks analyst returns

Heineken must cut costs to aid recovery - analysis

How COVID has accelerated the sobriety trend

Interview - Treasury CEO Mike Clarke - Part II

The just-drinks analyst returns

MORE

A government-advising health agency has said a minimum price should not be introduced nationally in Australia, for the time being. 

//i4.progressivedigitalmedia.com/1/wfl_077.jpg

In a report published yesterday (1 November), the Australian National Preventive Health Agency (ANPHA) warned that a price increase would “flow to private sector suppliers and retailers, potentially creating ‘monopoly rents'”. It also said that assessing the impact of the measure is not feasible.

However, the agency said minimum pricing should be considered in “more local circumstances” in the country.  

“Australia has private sector alcohol distribution and retail systems, so unlike other countries that have government-controlled alcohol distribution systems ... a price increase would flow to private sector suppliers and retailers, potentially creating ‘monopoly rents,” said the agency's CEO Louise Sylvan. 

However, the agency also said that the country's current alcohol tax system - where cheaper wine is taxed less regardles of its abv - is “of concern” and needs re-examining. 

The Winemakers’ Federation of Australia welcomed the ANPHA's findings on minimum pricing, but said it was disappointed it was still backing “price-based mechanisms”.

"ANPHA could not justify a public interest case that supports using price via minimum pricing to deal with alcohol abuse. It is hard to see how another pricing mechanism is going to be any different," said WFA chief executive, Paul Evans. 

Details of who responded to the agency's first consultation on minimum pricing emerged last month

Submissions are now being sought on the latest report, with a deadline of the end of November. A final report will be sent to Australia's Minister for Mental Health and Ageing, Mark Butler, in December, the ANPHA said.


Related Content

Scotland’s minimum unit pricing cuts alcohol purchases - study

Scotland’s minimum unit pricing cuts alcohol purchases - study...

Minimum Unit Pricing gets green light in Scotland as drinks industry loses legal battle

Minimum Unit Pricing gets green light in Scotland as drinks industry loses legal battle...

Why Minimum Unit Pricing could prove a win for both consumers and the drinks industry - Analysis

Why Minimum Unit Pricing could prove a win for both consumers and the drinks industry - Analysis...

D-Day for Minimum Unit Pricing - How did we get here? - Focus

D-Day for Minimum Unit Pricing - How did we get here? - Focus...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?