Department of the Legislative Assembly, Northern Territory Government

Dr LIM - 2000-06-20

I am sure all members would agree that the negative aspect of alcohol has taken a heavy toll on our community in terms of family disruption, anti-social behaviour and crime given the facts on employment etc. Given the success of the government’s attempt to encourage consumption of low alcohol beer in preference to heavy alcohol beer, has the Treasurer given thought on how the price gap between low and heavy alcohol beers can be maintained when the GST is introduced and does the Treasurer agree that the basis of much of the good work done by the Living with Alcohol program is predicated on light beer being substantially cheaper than heavy beer?

ANSWER

Mr Speaker, yes, I not only agree with it but Cabinet and certainly members on the government benches agree with it and it is a very important initiative. The maintenance of the differential between low alcohol and high alcohol beers has been the central point of the success of the Living With Alcohol program. Government is concerned that the differential is maintained so that the benefits that have derived from it - and the program, of course, as honourable members would be aware, Living With Alcohol has been in place now for the past decade - has seen substantial reductions, indeed, in the order of $125m reduction in health and safety costs to the community, and a reduction of average alcohol consumption of 22%, a drop of 22% because of this program.

Now, whilst there are health and safety benefits that flow from the maintenance of the differential, it is the differential itself that is thought to be the major contributor to the shift from heavy to light beer. And the offset to that are the benefits that are achieved in the health and safety areas.

The government, and Cabinet, has approved the maintenance of that price differential. It will cost $1.4m annually, and we will ensure that the advantages that have been detailed in the Curtin University report into Living With Alcohol, which also found the program had resulted in 35% fewer alcohol-related road accidents resulting in hospitalisation, 39% less road fatalities related to alcohol, 20% fewer alcohol-related hospital admissions, are trends and achievements that we do not want to see reversed. The central key to ensuring that those trends are both maintained, and hopefully, improved, are the price differentials between low and high alcohol beer. I table for the benefit of honourable members, and the minister for territory health services would obviously be saying something about this later on, the Curtin report in relation to these very important matters.

I advise honourable members that in national assessments of alcohol programs, the Territory, over the last few years, has come out tops in relation to the funding stream that it has directed towards these matters and the achievements that have been chalked up in terms of the success of the program.

The maintenance of that price differential will see that the $5.50 differential between the high and low alcohol beers will be maintained. If we did not take this decision and commit that $1.4m then the differential would have fallen to about $1.50 to $2.00 and we may well have seen a reversal of those achievements and those trends. In terms of $1.4m a year for what has been a $125m improvement in health and safety for Territorians, that is a wonderful investment. It is an incredible return on money for Territorians and the government is pleased to be able to announce today that that price differential between light and heavy beers will be maintained.
Last updated: 09 Aug 2016