Industry condemns Health Select Committee proposals

Parliamentary proposals calling for an overhaul of UK government alcohol policy have been met with anger and dismay by industry bodies.

The Health Select Committee predictably called for the introduction of minimum pricing, a rise in duty on spirits and white cider and stricter controls on advertising, but industry insiders have blasted the proposals as being naïve and short-sighted.

The industry has been resigned to the Select Committee’s recommendations for a while now, but there is a widespread feeling of disappointment and frustration that the proposals fail to address the real problems.

Jeremy Beadles, chief executive of the Wine and Spirit Trade Association, said: “This Select Committee report is just part of the concerted campaign by elements of the health lobby for a range of policies which will punish millions of hard-working people while doing nothing to tackle the problem few.

“The truth is that a minimum price of 50p or tax rises would force prices up for responsible consumers while proposed advertising restrictions amount to an effective ban which would put jobs at risk in the media and advertising industries.

“What’s needed is tough action against those who misuse alcohol with help for those who have a genuine health problem and mandatory school education about alcohol so that people understand the risks.

“Let’s focus our efforts on policies which make a difference rather than pursue a mantra of price rises and bans which will not address the root causes of alcohol misuse.”

Diageo also questioned the need for government intervention on price. Simon Litherland, Diageo GB’s managing director, said: “We recognise that alcohol misuse is a matter of serious concern for us all, but we are extremely disappointed by the committee’s divisive approach.

“This report represents yet another attempt by aggressive sections of the health lobby to hijack alcohol policy-making.”

The Gin & Vodka Association also waded in to the debate, saying that the introduction of minimum pricing will not make the slightest difference to the amount people drink.

Director general Edwin Atkinson said: “The Committee’s calls for minimum pricing are ill-founded as solutions to the harmful use of alcohol. Price is a blunt, inappropriate and ineffective instrument to deal with alcohol misuse.  

“It is wrong to assume that an increase in price at the bottom of the price range will affect those who misuse alcohol beverages. International evidence suggests that those who misuse alcohol are least likely to change their behaviour because of price changes.

“The Committee’s proposal to increase taxation on spirits as a solution to harmful drinking is similarly surprising, given that spirits represented only 12% of male and only 16% of female alcohol consumption in England in 2008.  

“There is already in place a robust regulatory framework to tackle alcohol misuse. It should be used effectively.”

Campbell Evans, government and consumer affairs director at The Scotch Whisky Association, questioned the legality of the proposals.

“It is disappointing but unsurprising that the Committee has simply re- hashed restrictive blanket policies that fail to target problem drinkers, whilst penalising moderate consumers,” he said.

“Ever higher excise duties on Scotch and minimum pricing would do little to target the minority of people who drink to excess. Yet they would seriously damage a major contributor to the economy and one of the country’s few manufacturing successes, representing 25% of UK food and drink exports.

“ The Committee is unfairly singling out spirit drinks, such as Scotch Whisky. Spirit drinks represent less than 20% of the UK drinks market and alcohol sold as spirits is already taxed more heavily than other drinks.

“In calling for minimum pricing, the Committee is seeking to introduce a measure that we believe to be both illegal and ineffective.”

The call for tighter controls on alcohol advertising has also been met with disdain by the industry, which has been making concerted efforts to impose greater self-regulation and introduce responsible marketing practices, particularly through the governance of the Portman Group.

Seymour Fortescue, Portman Group chairman, said: “The evidence proves that responsible marketing mainly influences our choice of drink rather than how much we consume.  Our system of marketing regulation, which provides strong protection for under-18s, is admired across the world.”

Alan Lodge, 08.01.2010