Alcohol tax hike will "spark public outrage"

Published: 9:31AM Friday April 23, 2010 Source: ONE News/Newstalk ZB/NZPA

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The Hospitality Association is criticising the proposed changes on alcohol sales.

A leaked law commission report shows the tax on alcohol could go up as much as 50% and bars and liquor outlets will soon have more strict retail hours.

Hospitality Association's Bruce Robertson says the move to hike up the tax will spark public outrage.

"We think New Zealanders have had enough of these increased costs that have been thrust upon them.

"We've had ACC levies go up, most salary packs have a little less in them this month. We're going to see car registrations go up, we've got ETS carbon credits starting to filter through onto fuel prices, excise tax is already going to go up in July and we've got potential GST later in the year."

The Law Commission report, Review of the Regulatory Framework for the Sale and Supply of Liquor, is due to be released next Tuesday.

There are a number of recommendations, including a 50% 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.

But Robertson says the changes do not address the niche root causes of binge drinking in New Zealand as it's aimed at targeting the masses.

"All those people that have a propensity to misbehave with alcohol - all that's going to do is that they will have to pay a little more for it. Everybody will get hit by it (excise tax) but it doesn't tackle the problem."

A new study by Waikato University has also linked the increase of police incidents to every new liquor outlet in the area.

Researchers found the addition of a single off-licence was associated with an extra 60 to 65 police events or incidents in the year until June 2009.

Each additional club or bar was associated with an extra 98 to 101 police events or incidents, while an extra restaurant or cafe was associated with an extra 24 to 29 police events or incidents.

Robertson does not think that simply putting liquor prices is not going to make a difference to the country's drinking problem or alcohol-related crime.

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