Pubdate: Tue, 16 Jan 2001
Source: Courier-Mail, The (Australia)
Copyright: 2001 News Limited
Contact:  GPO Box 130, Brisbane Queensland  4001
Fax: (07) 3666 6696
Website: http://www.thecouriermail.com.au/
Author: Michael McKenna

DRINKING TAX PLAN TO FIGHT ALCOHOLISM

DRINKERS could be slugged with a levy to counter alcoholism and domestic 
violence under a plan proposed by the Prime Minister's top drug advisory 
group.The Australian National Council on Drugs has recommended a levy, of 
between three and five per cent on all alcohol to fund treatment programmes.

Council chairman Brian Watters confirmed that the proposed levy was a key 
part of a report to Prime Minister John Howard.

He said the report condemned the lack of assistance for alcoholics.

The proposed levy, which would come on top of significant GST-price rises 
on alcohol last year, is based on a Northern Territory pilot programme 
which targeted drinks with more than three per cent alcohol.

The four-year programme, which increased the cost of standard drinks by 5c, 
was estimated to have reduced consumption by 22 per cent, prevented 2100 
alcohol-related hospitals admissions, and saved 129 lives.

A 1997 High Court decision prevented the Northern Territory, or any state 
government, from continuing to impose the levy, ruling that taxation 
increases could only be introduced by the federal government.

Major Watters, a Salvation Army officer hand-picked by Mr Howard to head 
the council, also warned that the Federal Government needed to be sceptical 
about the widening push to use marijuana for medical purposes.

Major Watters said the Federal Government could allow restricted use of the 
drug but only after the medicinal benefits could be scientifically proved 
in Australia.

The council, which advised the Howard Government on its "Tough on Drugs" 
strategy, also has warned of a need for greater education against the 
dangers of marijuana.

Major Watters said the council was concerned about the low level of 
government and industry assistance to alcohol education and treatment 
programmes in Australia.

"The council believes it can be done and has recommended the Prime Minister 
give serious consideration to the levy because there is not enough 
attention being given to alcohol abuse in this country," he said.

"It could be between 3 and 5 percent, that is something the Government 
has to determine, and should have an emphasis on high alcohol drinks such 
as cask wine.

"But we should be relating the solution, in better and more programmes, to 
the problem and the industry which is profiting from it and the people 
using it."

Australian Hotels Association executive director Richard Mulcahy last night 
dismissed the proposed levy saying alcohol was already among the most 
heavily taxed products.

Mr Mulcahy said Australian beer consumption had fallen by 4 percent 
since last July when prices soared on the back of an 89 percent excise 
increase with the GST.

"There are already massive amounts of tax collected from the industry and 
ample funding from that tax take to support these new programmes," he said.

Queensland Alcohol and Drug Foundation chief Bob Aldred said he would 
support an alcohol levy, provided all the money was used to prevent alcohol 
abuse.

Mr Howard and staff could not be reached for comment.
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