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Government prepares below-cost selling ban
The UK government is getting set to publish proposals on banning below-cost selling of alcohol within a matter of weeks, but the proposals are understood to rule out minimum pricing by the unit.
Former chief medical officer Sir Liam Donaldson had previously called for a minimum price of 50p per unit of alcohol, which would have increased the price of a bottle of wine to a minimum of £4.50 and a six-pack of beer to £6.
Donaldson and other health lobbyists had previously accused supermarkets such as Sainsbury’s, Tesco, Asda and Morrison’s of encouraging a binge-drinking society by using items such as wine and beer as loss-leaders in order to attract customers through their doors.
The coalition government has identified four possible options for outlawing irresponsible alcohol retailing:
• Ban stores selling alcohol at below the cost of duty and VAT
• Add in a value for the cost of production, distribution and marketing
• Ban sales below the cost of the wholesale invoice received by retailers
• Suspend competition law that outlaws collusion between firms allowing retailers to decide a fair price.
The options will be presented to the government in a consultation document in the first week of August.
Meanwhile the British Medical Association (BMA) has claimed that banning alcohol advertising is as necessary as the introduction of minimum pricing to help reduce the spread of alcohol abuse.
Measures such as banning the reward of loyalty points for alcohol purchases were also suggested at the BMA’s annual conference in Brighton last week.
“Most alcohol bought for consumption is from supermarkets,” said Dr Brian Keighley, chairman of the BMA in Scotland.
“There is a need to send the right message on drinking behaviour by not allowing ‘rewards’ for buying alcohol.”
Alan Lodge, 05.06.2010
How can anyone even consider that “cost” is duty and vat? What utter nonsense. Cost MUST be as invoiced from supplier. This of couse will include duty and vat.
If the big 4 charged at this cost and plus, say, a niminal 5% profit the amount of vat collected would be phenominal – and righly due.
As a retailer and consumer in Ireland, I think the UK govt. are on the right track here, but I do think BMA is suggesting a step too far. Culture and education is key, not the banning of marketing or reward schemes. Seems like another step towards the “nanny state” scenario. People aren’t so stupid that they need censorship. Show them the facts through education and let them make up their own minds. There’s no need to demonise alcohol if people are just sensible with it.