VicHealth chief says RTD tax must stay

Date: 25.02.09

Category: Alcohol and drugs

According to VicHealth chief, Todd Harper the Federal Government’s RTD tax should stay, despite a Distilled Spirits Industry funded study released today.

“The report itself warns against any definite conclusions on the effectiveness of the tax being drawn from the findings because of limited data.

“It’s interesting that Access Economics themselves admit that (the study) sample is statistically insignificant.

“There are several concerns surrounding the study’s claims.  Firstly it’s problematic to measure the impact of changing a policy which stood for eight years after just eight weeks.

“Secondly, hospital admission data does not record which beverage was consumed by a patient – whether that’s beer, wine or spirits.

 “What concerns me greatly about this study is its own admission of questionable validity,” Mr Harper said.

“We need to remember the key concern here is harmful drinking amongst young people. 

“RTDs are the most popular alcoholic drink, and the most common first-used alcoholic
beverage, among younger age groups. They are the preferred drink for young people who drink at risky levels.

 “The sweetness of RTDs means they are especially attractive to young women, and that's what is being targeted by this tax.

“Risky levels of alcohol use by young people are linked to increased risk of long-term developmental damage and chronic disease, as well as increased risk of acute harms such as injury, and violence, as well as impacting negatively on the wider community,” Mr Harper said.

“We know that a number of factors have contributed to the popularity of RTDs with young drinkers. They are cheaper in relation to other alcoholic beverages with comparative alcohol content. This is due to an existing loop-hole in the excise regime.

“RTDs are often flavoured with fruit or confectionery flavours, and are usually heavily sweetened, which masks the bitter and astringent taste of alcohol and appeals to the taste preferences of young people.

“RTDs are more palatable to young people than other alcoholic drinks such as beer,
wine and spirits, and are similarly palatable to soft drinks.

Many "premium" premixed spirits now comprise 7% alcohol by volume (ABV) so a bottle or can contains two standard drinks. This makes RTDs particularly attractive to young drinkers who are drinking to get drunk.

According to Mr Harper, the tax system provides the best chance to encourage consumers to switch their drinking preferences. 

“Australian and international research has shown that altering the price of alcohol is one of the most effective ways governments can influence overall levels of alcohol consumption, which is linked to the incidence of harmful drinking and the negative health and social consequences.
 
 “Shifting Australia’s drinking culture is one of the most challenging issues we face in reducing the problem of binge drinking, and the harms it causes, particularly amongst young people,” Mr Harper concluded.

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