Davis Kelvin: Alcohol Advisory Council Amendment Bill — In Committee 
Davis Kelvin: Alcohol Advisory Council Amendment Bill — In Committee 
[Volume:652;Page:1818] 
KELVIN DAVIS (Labour) 
: 
 I stand to support the Alcohol Advisory Council Amendment Bill. I too will not take too long over this. This bill is a technical amendment bill and it provides for a levy-setting regime that is fair up to date and simple to calculate. It replaces the current levy-setting mechanisms of the Alcohol Advisory Council Act 1976. That Act was reviewed by the Ministry of Health in 2004. It found that there were problems in the way the levies were calculated and apportioned. Clearly there was a need to move this levy system into the 21st century and effectively this bill does just that. 
The functions of the Alcohol Advisory Council as far as we are aware include research dissemination of information educational programmes and innovative treatment programmes. These functions are vital if we are to arrest the damage alcohol does within our society. However this bill does not address that damage unlike the previous bill that was debated—the Sale and Supply of Liquor and Liquor Enforcement Bill. As I mentioned this bill stems from a review carried out in 2004 by the Ministry of Health of the mechanisms used to set levies in the Alcohol Advisory Council Act 1976. The review found that the levy-setting mechanisms were outdated and that there were four problems in the way the levy was calculated and apportioned. 
Firstly in 1976 the classes of alcoholic beverages were limited. In fact there appeared to be only four classes of alcohol. From my perspective as a 9-year-old growing up in Northland in 1976 those four classes appeared to be Lion Red DB cask wine and top shelf. The point is that the range of alcohol available in the market has changed considerably since 1976 and the levy-setting provisions no longer reflect the diversity of alcohol available for purchase in New Zealand. I welcome the future-proofing of levies against the emergence of new types of beverages. The ready-to-drink products which contain about 5 percent of alcohol and taste little different from Thrifty or Raro were not available in 1976 so we can only imagine the jet-fuel mixes that will be released on to the market in the years to come. So I welcome this bill which streamlines the levy classification of emerging beverages. 
Secondly the spirits category requires the calculation of proof litres—something that no longer exist. It is therefore an anomaly that needs rectifying. Proof litres are no longer recorded by the New Zealand Customs Service which instead measures spirit volumes as litres of alcohol. 
Thirdly the current levy-setting mechanisms are unnecessarily complex especially when viewed alongside excise duties which are set on the basis of alcohol content. Alcohol importers and producers have noted that this procedure could do with simplification. There is no process for Cabinet to be involved in the levy-setting procedure and that is inconsistent with the more robust procedures for setting levies such as the problem-gambling levy. 
This bill corrects technical anomalies around the collection of levies and does not in fact increase by much the amount consumers pay for the various alcoholic products. It makes the new system fairer and ensures that a greater levy is paid for beverages containing more alcohol. Therefore I support this bill. 
Part 2 agreed to.