Alcohol price rises branded "unnecessary"

Saturday 26 November 2016

The Treasury is going to have to fight to put up alcohol prices by around 5% after one local Deputy labelled them "unnecessary and unreasonable" and suggested a rise of just 1.5% instead.

The Island's politicians will decide which way to go as part of the Budget 2017 debate which takes place in mid-December.

The Treasury wants to push up alcohol duty by around 5%, with extra strength beer and cider hit hardest by even larger percentage increases.

But yesterday, Deputy Russel Labey today tabled an amendment to the budget which calls for a 1.5% rise in alcohol taxes instead - a figure which he says is much fairer.

He said: "I feel very strongly that the tourism and hospitality industry in Jersey will be hit very hard by an above inflation tax hike, which I think is both unnecessary and unreasonable.

"It cannot be right that the industry should have to swallow this and anyway, I also feel it is counter-productive. The Minister says this price rise is justified on health grounds, but I struggle to see the evidence for that. I think what it will do is make more and more people drink at home, where they will drink larger measures of alcohol and with all the domestic problems that alcohol consumption in home can bring.

"I think pubs are a much better way for people to enjoy a drink. They are far more regulated and they are an environment which is much better suited to alcohol consumption. I think by constantly putting up prices you will increasingly drive people to drink alcohol in their homes because it is so much cheaper and I don't think that is necessarily a very good strategy.

"I have also seen precious little evidence that the tourism and hospitality industry were consulted in this price rise. I think it came as a shock to them and I'm not sure if that is really good enough..

"I think a 1.5% increase would be a fair figure and I will be seeking for the matter to be discussed by the States assembly when the budget proposals are put forward."

Senator Maclean insisted the budget increases for alcohol - more than three times the rate of inflation - were justified. He said: “We propose to increase duty on tobacco, alcohol, fuel and vehicle emissions. These items damage our health and environment and put pressure on public finances.”