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Warnings from a local pub chain boss that raising the price of booze could “snap” the industry went unheeded yesterday as politicians voted against restricting increases on alcohol duty.
As debate began yesterday on the Government Plan, Randalls’ Managing Director Gavin Reid wrote an open letter to the Treasury Minister, which was shared with all States Members, urging her to reconsider her proposals to raise the duty on alcohol over and above the rate of inflation to discourage islanders from drinking.
In it, Mr Reid questioned the health-based rationale behind the proposals.
Drawing attention to the example of tobacco duty, whose revenues have reportedly fallen by £2million, he questioned whether it had really stopped islanders from smoking or had simply led them to rely on duty-free purchases.
As a result of the tobacco duty deficit, he suggested that alcohol was being used as an “easy target” to recoup losses – something he felt would both penalise islanders and hit the hospitality industry.
Pictured: Deputy Rowland Huelin brought an amendment to cut the duty on alcohol from the Government Plan.
He wrote: “Year on year we see above inflationary increases in duty forced upon on-licenced premises where outlets are now commanding prices on par with London pubs compounded by the increased overheads we carry in getting our products across that expensive stretch of water (and in many instances, returning empty containers).
“Increased staffing costs which will have seen a 10.9% increase in the minimum wage from 2018 to what is proposed for 2020, plus the impact of double taxation seen by GST being charged on a product which is already subject to significant taxation when it lands on our shore.
“It therefore does concern me that if you continue to force up the price of alcohol then you are going to find the same problem as you now find yourself in with diminishing tobacco revenue.”
He added that the measure could also lead islanders to drink at home in a less safe, unregulated environment.
However, States Members did not appear to be swayed by this argument, voting down an amendment by Deputy Rowland Huelin to restrict the price rise to an inflationary increase.
The #StatesAssembly has voted to REJECT the 13th Amendment to the #GovPlanJSY, as lodged by Deputy Rowland Huelin. RESULT: 14 FOR vs. 29 AGAINST #JerseyCI https://t.co/r8s7UjYnHf
— States Assembly (@StatesAssembly) 26 November 2019
In a speech to his colleagues, Deputy Huelin argued that drinking was a part of global culture – jokingly taking the examples of Jesus turning water into wine and even toasts being made to the Queen, which were comments the Bailiff asked be withdrawn.
He described the justification of the proposals on health grounds as a mere “excuse” for a measure that provided “rich pickings” for government.
Instead, he said the measures would simply lead to financial suffering for those who “simply want a social drink”.
The Treasury Minister, Deputy Susie Pinel, refuted the Deputy’s arguments.
She said that there had been 900 hospital admissions specifically linked to alcohol in 2017 – higher than the English average – and that one in four assaults was alcohol-linked.
Addressing arguments by other States Members that previous price rises had not affected demand, the Minister further claimed that perhaps Jersey had not yet reached the price that it would, leading her to conclude that it was therefore right to “press on” with above-inflation rises for the “foreseeable future”.
In the end, Deputy Hueline’s amendment was rejected with 14 votes in favour and 29 against.
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