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Cheap Wine - Should Government Raise Minimum Price For Alcohol?

June 25th 2010 05:40
glass of cheap wine red wine
Australian wine is relatively cheap because of oversupply, and some wineries are selling their excess at cost or below. Many producers are being forced to ‘mothball’ or even tear up vineyards. So should the Federal Government artificially impose a higher minimum price for wine?

An Australian Greens motion expressing concern about the sale of low cost alcohol has been passed in the Senate.

Senator Rachel Siewert, Greens spokesperson for Health and Aboriginal Issues says the motion was triggered by concerns that wine was being sold for $4 a bottle this week in Alice Springs.

“Price regulation is one of the most effective ways to reduce the health and social impacts of alcohol, there needs to be a minimum price on alcohol,” Senator Siewert said.

“The effects of binge drinking can be felt throughout the community, with the innocent victims frequently being families and children of problem drinkers,” she said.

“The sale of alcohol at this price is irresponsible and dangerous and quite rightly has met strong opposition from Northern Territory community groups.”
whispers shiraz cheap wine glass bottle

Dr John Boffa, spokesperson for People’s Alcohol Action Committee, said that price is a major determinant of consumption and supports a trial of minimum pricing such as the 90 cent per standard drink benchmark proposed by PAAC.

“At last, it seems that government is going to accept that we need to get serious about reducing our per capita alcohol consumption towards the national average,” he said.

“This would address the problem of product substitution to other forms of cheap grog, such as cask port.”

Senator Siewert said the motion called on the Minister for Health to convene a meeting of the large supermarket chains and public health authorities to discuss responsible alcohol sales.

“I ask the Minister to convene such a meeting immediately,” she said.

“By passing this motion, the Senate has made a clear statement that responsible regulation of alcohol sales is a critical step in improving our nation's long term health.”

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