Floor pricing costs moderate drinkers just over 3 dollars extra a year
New research published today sheds light on the effects of minimum alcohol pricing, debunking the industry argument that it penalises all drinkers.
The Public Health Association of Australia says the analysis published in the Australian and New Zealand Journal of Public Health demonstrates why the measure currently in place in the NT is fair and should be adopted in other jurisdictions.
Minimum alcohol pricing, also known as ‘floor pricing’ was introduced in the NT in October 2018, mandating a minimum $1.30 unit price per standard drink. The industry argued that the policy would financially disadvantage all drinkers, not just the heavy drinkers it was designed for.
To test this argument, researchers analysed the drinking habits of 766 Northern Territory survey respondents that were not directly targeted by the policy and calculated their expenditure based on the cost of their beverage of choice before and after the introduction of minimum alcohol pricing.
Dr Nic Taylor, lead author and Research Fellow at ³Ô¹ÏÍøÕ¾ Drug Research Institute at Curtin University, says that the results show there is minimal cost impact on moderate drinkers.
“We found that the average alcohol expenditure for moderate drinkers only went up by a very modest $3.07 per year – a less than one percent increase.
“To put this in perspective, moderate drinkers ended up spending less than 6 cents more on alcohol a week.
“In fact, we found evidence to suggest that the impact of the minimum unit price for some moderate drinkers was so small that everyday alcohol discounts had a greater impact on how much they were paying for alcohol than the introduction of the policy itself.
“What this all demonstrates is that universal policies, like the floor price, can be an effective measure for reducing harm among high-risk groups without disrupting the lives of others.”
Terry Slevin, CEO, Public Health Association of Australia and Adjunct Professor at the ³Ô¹ÏÍøÕ¾ Drug Research Institute says that the research debunks myths used by commercial alcohol interests trying to undermine effective public health policy.
“As the NT approaches the five-year anniversary of the introduction of floor pricing for alcohol, other jurisdictions, including WA, are being encouraged to consider introducing this policy.
“When the cheapest alcohol, often in the form of cask wine, is cheaper than milk or bottled water, then dangerous levels of alcohol consumption are more likely. Frequently those consuming these cheap forms of alcohol are also very price sensitive, meaning less is consumed.
“Evidence shows that minimum alcohol pricing is a very effective way to help deter heavy drinking. Yet, the industry continues to put up arguments to protect the profits it makes from exploiting Australians addicted to alcohol.
“This study provides the evidence for policy-makers to refute commercially-fuelled arguments, and instead continue to promote measures that help protect Australians from alcohol related harm – which can include liver disease, high blood pressure, cardiovascular disease, cancers and accidental injury and death.”
