No minimum price for alcohol

Judith Collins announced:

Justice Minister Judith Collins has received the Ministry of Justice report, The Effectiveness of Alcohol Pricing Policies.

The report considers options for a minimum pricing regime and the possible costs and benefits.

Ms Collins says the Government will not be introducing minimum pricing on alcohol as this would hit moderate drinkers in the pocket when there is no compelling evidence that increasing the price of alcohol is the correct approach.

The Government will allow time for the new alcohol reforms to bed in and to assess their impacts, including the development and implementation of Local Alcohol Policies which are likely to take up to two years to come into full effect.

Ms Collins says the Government’s changes to the Sale and Supply of Alcohol Act aimed to strike a sensible balance to curb the harm of alcohol abuse without penalising moderate drinkers.

“New Zealanders who drink responsibly and moderately should not be unfairly targeted. Introducing a minimum pricing regime would see alcohol companies earn around $131m extra a year at the $1.20 minimum price point,” says Ms Collins.

The alcohol companies will be hoping Labour wins office as their former spokesperson, Lianne Dalziel, demanded that there be a minimum price of $2 a standard drink. This would mean it would be illegal to sell a bottle of wine for under $15 a bottle.