Hutchison Paul: Alcohol Advisory Council Amendment Bill — In Committee 
Hutchison Paul: Alcohol Advisory Council Amendment Bill — In Committee 
[Volume:652;Page:1817] 
Dr PAUL HUTCHISON (National—Hunua) 
: 
 Unlike the previous bill the Sale and Supply of Liquor and Liquor Enforcement Bill the Alcohol Advisory Council Amendment Bill is not intended to contribute to reducing alcohol-related harm. Instead the bill aims to simplify the calculation of the levy that funds the Alcohol Advisory Council. I must say what a very important job the council does. It receives in levies about $12 million and that sum helps it to continue its work in research in dissemination of information in educational programmes and in innovative treatment programmes. But the whole point of this bill is that it is a technical bill that is designed to simplify the machinery of levy setting. 
It is interesting that the bill was brought in I believe in about November 2007. Here was a classic example of something that could have been simplified but the previous Labour Government had other things in mind—things like the Electoral Finance Act. Labour was not going to simplify the entangled mesh of bureaucracy it had made over the previous 9 years so it is a very positive thing that this new National Government has with alacrity brought this bill into the House and is passing it expeditiously. This bill is here to simplify and align the levies with the export duties that were out of line in the past. 
Part 1 is the major part of the bill. However I believe that by sleight of hand we are on to the transitional part. It is important to make it clear that this bill creates new definitions of wine because in the past those definitions were not flexible enough to encompass the various drinks that have come on to the market including ready-to-drink beverages the alcopops which change rapidly from moment to moment as the marketers think of a new product that they are able to sell. So it is important to put in a new definition and align that with a rate which is done so in the schedule of this bill in order to make a flexible regime in line with the excise duties. I note that the bill repeals the old definitions and brings in the new ones. The definition of “wine” substituted in clause (4)(a)(i) includes: “cider perry and mead; and (ii) fortified wines such as sherry port and fruit or vegetable-based liquors; but (b) does not include—(i) beer or spirits; or (ii) any liquor containing no more than 1.15% volume of alcohol.” 
 I note that the bill has a very clear mechanism for determining the amounts of levy of each class of liquor. It goes in five steps that are very very— 
Hon Tony Ryall 
: Sequential. 
Dr PAUL HUTCHISON 
: —sequential steps that are clearly delineated in an elegant but non-verbose manner which again is in line with the philosophy of the new Government to make sure— 
Paul Quinn 
: Sharp. 
Dr PAUL HUTCHISON 
: —that things are indeed sharp— 
Paul Quinn 
: To the point. 
Dr PAUL HUTCHISON 
: —to the point and relevant. The steps are described in proposed new section 26(2) of the Alcohol Advisory Council Act paragraphs (a) through to (e). The rate of the levy is fixed by Order in Council and that again is defined in the schedule and is quite clear. It goes from class A to class F and if indeed there is more than 1.15 percent but not more than 2.5 percent the rate is 1.5 percent but if it is more than 2.5 percent but not more than 6 percent it is variable; and so forth according to the schedule.