Doubts over below cost ban on alcohol (From The Northern Echo)

Doubts over below cost ban on alcohol

8:00am Thursday 23rd February 2012 in News By Barry Nelson, Health Editor

RESEARCH by North-East academics suggests that the Government’s plans to introduce a ban on below-cost pricing for alcoholic drinks is unlikely to have much of an impact.

Following Prime Minister David Cameron’s vow, while visiting the North-East last week, to tackle binge drinking, new research from Newcastle University has highlighted the need for a stronger approach to alcohol pricing.

The study, published in the journal Alcohol and Alcoholism, finds that the ban on below-cost pricing, to be introduced in April, is unlikely to have a noticeable effect on the cost of alcohol.

It found that, in Newcastle, less than two per cent of promotions led to alcohol being sold at belowcost price.

Academics at Newcastle University recommend the much higher minimum price of 50p a unit. This was first suggested by Sir Liam Donaldson in 2009, when he was Chief Medical Officer and which the Government is said to be considering.

The study – led by Dr Jean Adams – was carried out in Newcastle city centre and focused on price promotions – which are likely to represent the cheapest end of the alcohol market. The researchers visited all 29 stores selling alcohol and found more than 2,000 alcohol promotions on display for customers.

Dr Adams said: “The effect of price on alcohol consumption has been documented clearly: when the price of alcohol increases, consumption decreases; whereas when price decreases, consumption increases.

“Setting the minimum alcohol price at below-cost price will not deter binge drinkers, as very little alcohol on sale will actually have to increase in price.

“In contrast, a minimum price of 50p per unit would impact on more than one quarter of the price discounts we identified.”

The researchers also found that many of the promotions required customers to buy large amounts of alcohol to claim the discount.

Last week, during a visit to the North-East, Mr Cameron said the level of drunkenness in the UK was a “scandal” and that supermarkets, bars and the drinks industry should do more to help the situation.

The Government is due to publish a new alcohol strategy later this year.

Colin Shevills, director of Balance, the North-East alcohol office, said: “We welcome this research, which further demonstrates the real need for a minimum price per unit of alcohol if we are serious about tackling the problems caused by its misuse.

“Alcohol continues to be sold for pocket money prices across the North-East, where we have the highest rate of alcohol related hospital admissions and male deaths in England.

“Research we published last year revealed that alcohol was available for as little as 12p a unit, meaning a man can drink at his recommended daily limit (three to four units) for only 48p.

“This can’t be right when we know that consumption is driven by price.