Chief Executive Officer (CEO) of the Alcohol and other Drugs Council of Australia (ADCA), David Templeman, said that the introduction of this tax reform has demonstrated success during the past nine months and is a good first step in alcohol taxation reform.

“The evidence from the Australian Taxation Office is rather conclusive” Mr Templeman said. “Since the new tax rate for Ready-To-Drink spirits (alcopops) has been in effect, total spirits sold have decreased by 10 per cent.”

“Despite a concerted campaign of misinformation by the alcohol industry over the past year, ADCA is pleased that the Government has stuck to its initiatives announced in the National Binge Drinking Strategy,” Mr Templeman said. “Alcohol abuse causes 1 in 4 hospitalisations of young people aged 15-24, while underage drinking contributes over $200 million in annual revenue for the alcohol industry.”

ADCA commends the Rudd Government’s concerted focus on alcohol abuse since election and backs the Health Minister, Nicola Roxon’s call for the alcohol industry to work with the community, the AOD sector, and all levels of Government to reduce harmful alcohol consumption.

“The alcohol industry’s figures have shown that the alcopop market has increased by 250% since 2000,” Mr Templeman said. “ADCA also notes there are 19 brands of spirit-based alcopops in Australia, compared with six in the United States and 13 in the United Kingdom, comparable countries which did not have an alcopop tax exemption.”

Mr Templeman said changing our alcohol consumption patterns is a shared responsibility between Governments, the community, alcohol and other drug services and the liquor industry. ADCA acknowledges the responsible approach taken by Lion Nathan and Fosters Group to reduce the alcohol content of their alcopops which leads the way in addressing community concerns.  ADCA also strongly supports comments from the Australian Drug Foundation and the Alcohol Education and Rehabilitation Foundation (AER).  ADCA also expresses thanks for the funding support provided to ADCA members and other AOD organisations by AER.

“ADCA will continue its support for the alcopop tax reform as the Peak Body of the alcohol and other (AOD) drug sector non-government organisations,” Mr Templeman said.  “We will continue to apply pressure for alcohol taxation reform and other AOD policy initiatives such as; management of responsible drinking, product branding, outlet density, opening hours, and alcohol awareness projects for communities.”

11 February 2009

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