Minimum Unit Pricing (Alcohol)

[miked10270 0]

Not sure if this has been discussed:

The Scottish government is looking at bringing in a minimum unit price for alcohol in an effort to curb excess consumption.

For clarity, one unit is 10Ml of PURE alcohol, so a 70Cl (standard) bottle of sprits (40%) contains 28 units. A standard 70Cl bottle of wine (12-13.5%) contains 9 units. Bottles or cans of beer contain 1 or 2 units... YOU do the math - volume in Centilitres X alcohol %age.

See:

http://news.bbc.co.uk/1/hi/scotland/8278385.stm

and:

http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/8276334.stm

for background.

So... Is it a good thing or a bad thing?... And why?

Mike.

Taking the piss out of the FrenchAmericans since before it was fashionable.

Prenait la pisse hors du FrançaisCanadiens méridionaux puisqu'avant lui à la mode.

[Andrewwhyte 1]

In the short run it is a bad thing, but in the long run it could lead to a rennaisance in whiskey making as it will increase the "micro-still" business.

[pincheck 0]

I thought the meddling twats in the Eu had said it was illegal so really a mute point

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[lawrocket 3]

It's a fabulous way to create a black market. Hijackings of lorries with a load of booze will increase to be sold on a black market at below the price floor.

Good luck with the program.

My wife is hotter than your wife.

[JohnRich 4]

Time to fire-up the home-made stills.

Increasing cigarette prices doesn't stop people from smoking. They just have to pay more to get their fix, thereby depriving their families of other things they need in order to afford their cigarettes. The demand is inelastic. It's not something people give up because it's too expensive. They give up other things in order to continue to afford expensive cigarettes. Artificially raising prices on alcohol to try and curb consumption will do the same thing. People will continue to get drunk, and their families will do without other things that you used to have before.

Governments never seem to learn...

[jcd11235 0]

Quote

Increasing cigarette prices doesn't stop people from smoking. They just have to pay more to get their fix, thereby depriving their families of other things they need in order to afford their cigarettes. The demand is inelastic. It's not something people give up because it's too expensive. They give up other things in order to continue to afford expensive cigarettes.

The demand among current smokers is inelastic, but the demand among new and potential smokers is not.

Math tutoring available. Only $6! per hour! First lesson: Factorials!

[kelpdiver 2]

Quote

Time to fire-up the home-made stills.

Increasing cigarette prices doesn't stop people from smoking. They just have to pay more to get their fix, thereby depriving their families of other things they need in order to afford their cigarettes. The demand is inelastic. It's not something people give up because it's too expensive. They give up other things in order to continue to afford expensive cigarettes. Artificially raising prices on alcohol to try and curb consumption will do the same thing. People will continue to get drunk, and their families will do without other things that you used to have before.

Governments never seem to learn...

The impetus for this sort of pricing/taxation is the belief that cheap booze in the UK is too cheap.

I don't agree with you that consumption is inelastic, even for current drinkers. The frequency of consumption probably is, but the quantity is not. To be clear, I doubt it makes good policy, but the intent is to make it more expensive to get shit faced on their version of two buck chuck.

That sort of thing wouldn't affect me nearly so much since I tend towards the premium side and drink much less of it. An X% tax based on volume hurts much more against a $10 750 of tequila then a $40 750 of Scotch.

It's definitely a regressive tax against the lower income people, so the legislation has some elements of class war in it, intentional or not.

[miked10270 0]

Quote

I thought the meddling twats in the Eu had said it was illegal so really a mute point

Not so (apparently). The EU law is confusing since it prohibited "price-fixing" of tobacco by Governments.

Another EU law says it IS legal to set a minimum product price as part of a wider-ranging health program.

As Kelpdiver said, the real target is our equivalent of your two-buck-chuck; The cheap chemical cider, M&D20/20, Buckfast, etc... And to a lesser extent the cheap supermarket stuff.

The MUP discussed (40-50p/unit) won't affect pube which already charge 1bout £1.30/unit. Nor will it effect "decent" brands which charge about 60-80p/unit. It may "slightly impact supermarket own brand which charge 40-50p/unit.

What (it is argued) MUP will most impact is heavy drinkers on low income, by effectively pricing the cheapest of alcohol out of the market. Hence the claimed social benefits.

I'm not au-fait with current US alcohol products & prices so it's quite hard to give exact parallels. Maybe someone who's recently been across the pond can help?

Mike.

Taking the piss out of the FrenchAmericans since before it was fashionable.

Prenait la pisse hors du FrançaisCanadiens méridionaux puisqu'avant lui à la mode.

[pincheck 0]

Quote

Quote

I thought the meddling twats in the Eu had said it was illegal so really a mute point

Not so (apparently). The EU law is confusing since it prohibited "price-fixing" of tobacco by Governments.

Another EU law says it IS legal to set a minimum product price as part of a wider-ranging health program.

As Kelpdiver said, the real target is our equivalent of your two-buck-chuck; The cheap chemical cider, M&D20/20, Buckfast, etc... And to a lesser extent the cheap supermarket stuff.

The MUP discussed (40-50p/unit) won't affect pube which already charge 1bout £1.30/unit. Nor will it effect "decent" brands which charge about 60-80p/unit. It may "slightly impact supermarket own brand which charge 40-50p/unit.

What (it is argued) MUP will most impact is heavy drinkers on low income, by effectively pricing the cheapest of alcohol out of the market. Hence the claimed social benefits.

I'm not au-fait with current US alcohol products & prices so it's quite hard to give exact parallels. Maybe someone who's recently been across the pond can help?

Mike.

interesting, you don't see so many kids drinking Bucky( to expensive )for most. So much now they have moved onto something else and that's all they will do. Its is a problem all you have to do is to go to any major city centre on a weekend to find out how bad. No point in putting our heads in the sand hoping it will go away something has to be done !

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