Prebble Richard: Customs and Excise (Alcoholic Beverages) Amendment Bill — First Reading Second Reading Instruction to CommitteeCWH In Committee Third Reading 
Prebble Richard: Customs and Excise (Alcoholic Beverages) Amendment Bill — First Reading Second Reading Instruction to CommitteeCWH In Committee Third Reading 
[Volume:608;Page:5358] 
Hon JIM ANDERTON (Acting Minister of Customs) 
: I move  
That the Customs and Excise (Alcoholic Beverages) Amendment Bill be now read a first time. 
 This is important legislation. It will increase the excise duty on alcoholic beverages that contain more than 14 percent but not more than 23 percent alcohol by volume. The products that mainly fall into that category are the very cheap light spirits often drunk by young people. It is well known that most young people make their alcohol purchasing decision based on the amount of alcohol they can get for their money—or put another way the amount of bang they can get for their buck. 
The drinking habits of young New Zealanders are of great concern to me and I know to at least some other members of the House. Recent surveys have shown an increase in the level of heavy drinking amongst young people. Survey data show that the proportion of young women aged 14 to 17 years who drank four drinks or more in one sitting at least once a week increased from 15 percent in 1998 to 28 percent in 2001. That means almost a third of underage young women aged 14 to 17 are now drinking excessively. In my view it is not acceptable for us even remotely to be seen to encourage young New Zealanders in general or young New Zealand women in particular to drink in that manner. In addition to an increase in heavy drinking in young women survey data also show that there was an increase in the proportion of young men who are drinking excessively. The survey also showed that 58 percent of young men aged 14 to 17 years and 51 percent of young women aged 14 to 17 years reported drinking enough to feel drunk at least once a month. 
Something needs to be done to address the issue of heavy drinking by young New Zealanders and this Government is determined to do that. The excessive consumption of alcohol by young New Zealanders can of course be disastrous. It is well know that drunkenness contributes to teenage pregnancy car accidents drownings house fires and birth defects. I personally believe that lowering the drinking age and increasing the access to alcohol was a grave mistake. That is not Government policy but it is my personal view. 
While alcohol consumption is embedded in New Zealand culture and most people manage to drink without harming themselves or others the fact remains that the misuse of alcohol results in considerable health social and economic costs which are borne by individuals’ families and the wider community. A recent study of patients attending an emergency hospital department during December 2000 showed that 35 percent of injured patients reported having consumed alcohol prior to sustaining their injury. The risk of sustaining an injury was 2.8 times greater when alcohol was consumed. The number of publicly funded hospitalisations for 15 to 17-year-olds where the primary diagnosis was alcohol-related increased to 205 in the year 2000. For 18 to 19-year-olds the number of publicly funded hospitalisations where the primary diagnosis was alcohol-related showed an increasing trend from 55 in 1996 to 85 in 1999 and continued to increase to 114 in the year 2000. 
Affecting the price of alcoholic beverages has been identified internationally as one of the key ways to reduce the amount of alcohol consumed by young people and heavy drinkers. I repeat that internationally one of the key ways identified to reduce the amount of alcohol consumed by young people and heavy drinkers was to increase the price. Research shows that price is a powerful determinant of the amount of alcohol consumed by a population. Young people and heavy drinkers are particularly susceptible to the price of alcohol. Increasing the price of alcohol through an increase in excise duty should result in decreased consumption by young people and heavy drinkers. That is what this Labour-Progressive Government is interested in—a decrease in alcohol consumption by young people and heavy drinkers. 
This bill will change the excise duty regime so that alcoholic beverages in the 14 to 23 percent alcohol by volume range will be taxed according to their actual alcohol content rather than all being levied as though they contain 18 percent alcohol by volume. The changes also mean that the products will be taxed at a higher rate. That is the same rate that full-strength spirits are taxed at. That will mean— 
Hon Richard Prebble 
: So you may as well buy whisky. 
Hon JIM ANDERTON 
: If a person has the money he or she may and Mr Prebble may well do that. However young people of 14 17 and above will not. The changes also mean that the products will be taxed at the higher rate—the same rate as I say that full-strength spirits are taxed at. That will mean that young people will be less able to afford to buy as much alcohol as they currently do. Their $10 of pocket money will not be able to buy them as it currently does a bottle of gin. They will drink less alcohol get less drunk and cause less harm to themselves and to other New Zealanders. That is the view of the Government. [ 
Interruption 
] 
Mr SPEAKER 
: There are far too many interjections and a lot of them are in the second person. 
Hon JIM ANDERTON 
: Maybe the price of alcohol is too cheap already. The Government believes strongly that this measure will assist in reducing the level of drunkenness and the harm that alcohol causes to young New Zealanders. I recommend this bill to the House.