About the Alcohol Advisory Council The Alcohol Advisory Council of New Zealand was established by a 1976 Act of Parliament, under the name the Alcoholic Liquor Advisory Council (ALAC), following a report by the Royal Commission of Inquiry into the Sale of Liquor. The Commission recommended establishing a permanent council whose aim was to encourage responsible alcohol use and minimise misuse. ALAC’s aims are pursued through policy liaison and advocacy, information and communication, research, intersectoral and community initiatives, and treatment development. ALAC is funded by a levy on all liquor imported into, or manufactured in New Zealand for sale and employs 26 staff. The Council currently has 8 members and reports to the Minister of Health. alcohol.org.nz is published quarterly by the Alcohol Advisory Council of New Zealand/te Kaunihera Whakatupato Waipiro o Aotearoa. An editorial committee oversees the newsletter. The next issue of alcohol.org.nz will be published in June 2003. To receive a copy, contact: alcohol.org.nz Alcohol Advisory Council P O Box 5023 Wellington New Zealand Phone 04-472-0997 Call free 0508-258-258 Fax 04-473-0890 Email [email protected] © ALAC 2003 alcohol.org.nz ISSN 1175-2831 Editor/writer: Kate Mahony Alcohol Advisory Council Kia ora, Kia orana, Ni sa bula, Namaste, Taloha ni, Malo e lelei, contents Fakaalofa atu, Halo olaketa, Talofa lava, Greetings... FEATURE 2 Raising excise tax helps young drinkers 2 Say win – say when MÄORI MATTERS 6 The Say When Halberg Sports Awards were Healing our spirits debrief 6 held in Auckland on 20 February this year. This Cultural context critical 8 is an occasion for New Zealand to celebrate and acknowledge sporting excellence by EARLY INTERVENTION 10 sportspeople and sports teams for their Stocktake shows growth 10 performance during the past year. We’d like to congratulate the winners of the seven different YOUNG PEOPLE 11 categories. The past year produced some Drugs and young people 11 phenomenal performances. Dr Mike MacAvoy, Chief Executive Officer Kettil Bruun thematic meeting 12 ALAC has been the major sponsor for these Say When Halberg Awards 13 awards for the past five years. There has been some criticism of ALAC’s involvement TREATMENT 14 with these awards as being outside the mainstream of what ALAC is mandated to do. Spirit of partnership 14 Sport is ingrained in our culture, as is the drinking which occurs before, during and Outcomes project 15 after sports events. The relationship between sport and alcohol is so intertwined that Kith and Kin 15 it is hard to envisage a sporting event at any level where alcohol is not involved, be it your local darts club or cricket club. It is also fair to say that without the sponsorship NEWS 16 of alcohol producers, hotels and bottle stores most, if not all, sports clubs and codes Gary Harrison Scholarships 16 could not survive financially. Drug Helpline 17 The reality is that sport at its most basic level is dependent on the largess of the Successful summer message 18 alcohol industry and the alcohol industry, in turn, depends on the consumption by PEOPLE 19 players, officials and supporters. New staff at ALAC 19 Sports clubrooms and hotels provide a major training ground for young people RESOURCES 20 entering the adult world of alcohol consumption. The young people copy the drinking Journeys from addiction 20 behaviour of players. Encouragement by club officials to consume, often at reduced rates, is another factor which shapes the sports drinking culture. ALAC has seized the opportunity in supporting these awards to drive a message home to clubs and codes and leaders in the sports industry. The message is about the importance of ensuring club social activities are enjoyable but safe. Policies for the safe use of alcohol have been drawn up for clubs and implemented through some district sports councils. Material has been prepared for sportspeople, coaches and trainers on the effects of alcohol on sporting performance and injuries. All this has been possible through the credibility ALAC has gained through its promotion of the Say When Halberg Sports Awards. For 2003 the theme will be around looking after our young people. We have focused on the importance of adults modelling responsible behaviour. That’s the theme of our television and radio advertising and much of the correspondence we have exchanged with sporting organisations in the build-up to the awards night. Te Kaunihera Whakatupato Waipiro1 RRaaiissiinngg eexxcciissee ttaaxx wwiillll hheellpp Economist Brian Easton, in a report commissioned by the Alcohol Advisory Council, argues that greater attention should be paid to the role of prices in the decision to consume liquor. He suggests a change in thinking so that in future the primary purpose of excise duties should be as part of a national harm minimisation strategy. Taking a harm reduction approach to alcohol excise duties could benefit two particular groups in New Zealand society – teenagers and heavy drinkers, he says. So how does excise duty work and what can be achieved if a harm perspective is adopted? KATE MAHONY reports. Excise duty is a tax and it is collected on all alcohol imported or manufactured in New Zealand. Historically, excise duties were imposed on alcohol as a matter of administrative convenience and were regarded as a revenue-gathering instrument. In New Zealand from 1875 to 1876 customs and excise duty from alcohol and other products made up a huge 91.6 percent of tax revenue. As a result of the excesses of drinking in the 19th century, alcohol came to be regarded as an indulgent activity, if not downright evil, and the practice was to label excise duties as ‘sin taxes’, says Brian Easton in his report Taxing Harm: Modernising Excise Duties. Attitudes have changed over time. Generally, society today believes that alcohol is an acceptable product like any other but that its misuse can be harmful. There has been some movement towards regarding 2 Brian Easton yyoouunngg && hheeaavvyy ddrriinnkkeerrss excise duty as a tool to inhibit the consumption of products with an actual alcohol content above 23 FEATURE products that negatively affect the general welfare of percent and is set at $38.422. the population. In addition, the lower alcohol content range is divided In 1988, a Report on the Review of Excise Duties on into five sub-ranges that are taxed using an assumed Alcoholic Beverages and Tobacco Products1 (known as alcohol content somewhere in the range, except for the Sullivan Report) identified three possible the second to bottom range in which the excise objectives of excise duty. These were to collect payable is based on actual alcohol content. The revenue, to recover social costs associated with the following table summarises the alcohol excise regime. use of these products and to discourage consumption. Alcohol band Deemed actual alcohol content Excise rate used In his report, Brian Easton comments that since 1989, the broad policy toward alcohol has been based upon 0% to 1.15% 0% n/a the notion that much of its consumption is like the Above 1.15% and up to 2.5% 1.5% $21.096 consumption of other products. Therefore, a well- informed adult makes informed decisions as to the Above 2.5% and up to 6% Actual alcohol content $21.096 quantity to be consumed and the circumstances in Above 6% and up to 9% 8% $21.096 which the consumption can take place. Above 9% and up to 14% 10% $21.096 “However, some consumption is potentially harmful, and there is a necessity for public intervention to Above 14% and up to 23% 18% $21.096 minimise the harm. Regrettably, those interventions Above 23% Actual alcohol content $38.422 can also inhibit non-harmful drinking.” The instruments of public policy to intervene on There has been concern recently in the community alcohol consumption have been based upon such about the prevalence of new cheap alcoholic statutes as the Sale of Liquor Act, the Alcohol beverages which appear to be marketed to appeal to young people. Their introduction has come at a time Advisory Council Act and parts of omnibus acts such when there is already concern about the rising as the Health Act, Police Offences Act and the incidence of teenage drinking in this country. Transport Act. More recently they have been Teenage drinking has increased markedly over the last coordinated and prioritised via New Zealand’s first- decade and there is clear evidence that much of it is ever National Alcohol Strategy 2 which was endorsed potentially harmful. and signed off by the government in 2000. However, Under the tax structure these new drinks – light taxation on alcohol has yet to be integrated into this spirits – are taxed in the beer and wine bands rather comprehensive strategy. than in the band intended for spirits. Because they are Currently excise duty is imposed on the basis of cheaper to produce they are low in price which makes alcohol content only where the absolute alcohol by them attractive to young people. volume (aabv) is between 2.5 and 6 percent or above They are also taxed at the lower excise rate. 23 percent. There are two excise rates. One applies to Producers are therefore able to sell these light spirits products with an actual alcohol content up to 23 brands for around $10 a bottle compared with the percent and is set at $21.096. The other applies to much higher prices of imported and other spirits. As an example, under the current regime a 1.1 litre bottle 1 Excise Duties Review Committee (1988) Report on the Review of Excise Duties on Alcoholic Beverages and Tobacco of 23 percent spirits attracts around $4 in tax.