Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The government announced some weeks back that it would restore the excise on ready to drink alcoholic beverages to the spirits rate that previously existed. This reverses the previous government’s decision in 2000 to tax these drinks like full-strength beer rather than full-strength spirits. The evidence is crystal clear that excise is an effective measure in reducing alcohol consumption. International experience backs this up. The revenue raised through this measure will also assist in funding new prevention activities, which we really need if we are serious about better long-term health outcomes.

This is just one part of a national strategy to tackle the binge drinking epidemic among young Australians. This strategy also includes $14.4 million for community level initiatives to confront the culture of binge drinking, particularly in sporting organisations, and $20 million to fund advertising that confronts young people with the costs and consequences of binge drinking.

Additional excise revenue will be raised because those who drink alcopops will pay a higher level of excise per drink—70 per cent more. That is where the additional revenue comes from. The Treasury costings assume that consumption of alcopops will decrease relative to what it would be if not for this measure. This is a reduction of 42 million 375 ml bottles in 2008-09. That is, the measure is expected to reduce but not reverse the growth in RTD consumption. The inflationary impact is expected to be negligible.

We need to rein in binge drinking amongst young Australians. Those opposite may not take this seriously, but those on this side do. The evidence tells us that alcopops consumption is highly responsive to price, especially for younger people. That is why we were initially pleased to read that this effort would receive support from everyone in both chambers. On the day we announced this measure the Leader of the Opposition said:

The proposed increase in the excise on alcopops is something that will be supported by us ...

Now, just a few days later, the opposition leader has completely reversed his position. He is now describing this measure as ‘the outrageous half a billion dollar tax binge on ready-mixed drinks’. Dr Nelson, as the former president of the AMA, is now at odds with himself and the entire health community in denying this evidence. (Time expired)