Ian Swanson: Minimum booze prices downed but not out

Published on Friday 27 November 2009 08:40

LABOUR'S decision to oppose plans to introduce minimum pricing for alcohol means defeat for the measure is all but inevitable.

The flagship proposal of the SNP's Alcohol Bill looks set to be thrown out by the combined opposition of Labour, the Tories and the Liberal Democrats when they are asked to vote on it in the Scottish Parliament. But could celebrations by supermarkets, drinks companies and consumers anxious to preserve cheap booze prove premature?

Labour says it accepts there is a link between the cost of alcohol and the over-consumption that causes 1,500 deaths a year and costs Scotland an annual 2.25 billion.

And the party has set up its own commission to look at alternative pricing mechanisms. Scottish Labour leader Iain Gray said: "We do believe price has a role to play in dealing with these problems."

That's not what the drinks industry wants to hear and it's not the line many other critics of minimum pricing have taken. They prefer to sideline the price issue altogether and talk about the need for more "education", tougher enforcement of existing laws or targeted help for problem drinkers.

Labour's commission, headed by Sally Brown, emeritus professor of education at Stirling University, will start work in the new year and will not report until next summer.

But among the ideas it is expected to consider are a local sales tax, a social responsibility levy added to the cost of drinks at point of sale and local licensing boards refusing licences to places selling alcohol below cost price.

The Scottish Parliament would not have the power to levy a national sales tax, but Labour believes a local sales tax could be introduced, set at a uniform rate for all parts of Scotland, so long as it was administered by local authorities.

A social responsibility levy is a proposal the SNP has already included in the Bill as a way of getting licensed premises to help pay for the extra costs of policing anti-social behaviour. But Labour sources say it could also be used as an additional form of duty on drink at point of sale.

And another way of tackling the problem of supermarkets selling alcohol cheaper than water could be for licensing boards to deem such behaviour "irresponsible" and therefore grounds for refusing them a licence.

An objective analysis might conclude that what Labour is proposing amounts to a minimum price by another name.

Labour says a key difference between what it wants to do and the SNP's proposal is that minimum pricing would leave all the extra cash in the pockets of the supermarkets and the drinks companies while Labour would put the money into education and treatment.

A flaw in many of these options, however, is that unless there is a minimum price set, retailers are under no obligation to pass the cost of new taxes directly on to the price of alcoholic drinks.

An SNP insider says: "Lots of tax increases imposed by the Chancellor at Westminster are not passed on. That's what loss leaders are all about – the extra costs are passed on through price rises in other goods instead."

The Tories and others have talked in the past about a possible ban on selling alcohol below cost price. But SNP sources say that would be equivalent to setting a minimum price of 20p per unit, which would still mean ridiculously low prices on the shelves. The Alcohol Bill – which also includes a ban on irresponsible off-sales promotions and powers for councils to ban under-21s from buying booze at supermarkets and off-licences – was seen by the SNP as its chance to pass landmark health legislation, leading the way just as the previous Scottish Executive did with the smoking ban.

It looks as if that is not to be.

Labour MSPs discussed their stance on the Bill at a group meeting on Tuesday and the shadow cabinet made the final decision on Wednesday. But the SNP has accused them of cynicism over the timing of their announcement.

Back in March, Labour, the Lib Dems and the Tories complained the SNP planned to introduce minimum pricing through regulations rather than a new Bill and demanded the idea should be subjected to full parliamentary scrutiny. But now all three parties have announced they will vote the proposal down.

Health Secretary Nicola Sturgeon plans to let the Bill take its course and argues any MSP voting against it once they have heard the evidence will have a lot of explaining to do. MSPs are expected to start taking evidence on the proposed legislation in February with a vote on minimum pricing likely around April or May. Then, if the measure is defeated, SNP insiders say the party is ready to make it an election issue.

Campaigning for higher drinks prices might not seem the most obvious vote-winner. But a senior SNP source says there will be many Scots who want to address the issue of alcohol misuse and are prepared to back minimum pricing.

And he points to the backing of police chiefs, medical organisations and the Scottish Licensed Trade Association.