The Scottish Government has just won an important legal case to enforce Minimum Unit pricing for alcohol – the first in the world. What will this achieve – reduced alcoholism and alcohol related issues or maximum upset always round?
The true answer is that no-one really knows, however various lobby groups and now the Scottish government itself believe that it will have a serious impact on the rate of alcoholism and heavy drinkers in the country north of the border.
Certainly it will, but whether it will be the one that they desire is a cause for questioning. Using price as a tool against such a profound human illness as alcoholism has dubious validity. It is a common known marketing theme that as soon as you talk price then the quality of what you are selling depreciates. Surely the same rules apply? If we use price as the arbitor then all we do is cause a greater motivation for the needy to find the resources to purchase their need at whatever cost. This the value of using the price tool is not just reduced but causes other problems.
Further we penalise good behaviour of those that are using alcohol in the right way. Those less well off are punished with a surreptitious tax.
It is interesting to note at this point that when the new UK licencing laws came into force in 2003, the UK government enshrined a programme of education. Cast your minds back and we were on the cusp of binge drinking causing weekend social havoc in every town and city up and down the UK. Almost every year since alcohol consumption has reduced and nowhere is the greater evidence of sensible use of alcohol than in Generation Z. It is long term education that makes the difference not pricing. Further evidence can be found in the scurrilous UK alcohol duty rates, which are raised in ever increasing amounts, but when they are reduced as they were earlier in this decade they brought in more money.
Once again government manipulation of markets, as the EU court also pointed to in its judgement, will more than likely lead to politicians justifying their own poor decision making, rather than solving the problem. And this is just the start, Wales is now examining its own minimum pricing, how long before whole UK is subsumed in more unwanted, nil value creating tax imposition? Minimum pricing – maximum upset?
Alistair Morrell, Hospitality & Catering News, Wine & Drinks Editor