I was surprised to read in the news that new research has shown the social cost of alcohol to the Australian community has been substantially over-estimated.  Apparently, a paper to be unveiled by economist Dr Eric Crampton, of the University of Canterbury, argues that there are flaws in the methods used to determine the figure of $15 billion, claiming $3.8 billion is more reflective of the costs borne by the community.

Don’t you think this sounds familiar?

Cast your mind back to 2010, when the AER Foundation launched a study entitled The Range and Magnitude of Alcohol’s Harm to Others.  For the first time, the study quantified the cost of alcohol-related harms to those other than the drinker themselves, putting the social cost of alcohol at around $36 billion – a far cry from $15 billion (and so far from $3.8 it’s not even worth mentioning).

Access Economics then published a critique of the study, claiming that the figure was grossly exaggerated and based on flawed research that “should play no part in informing health policy.” 

And of course, because Access Economics was commissioned by the National Alcohol Beverages Industries Council (NABIC) to review the report.

The AER Centre for Alcohol Policy Research then published a rebuttal, dismantling Access Economics’ critique piece by piece, noting that the “critique reads like a document written to serve the interests of the industry which commissioned it.”

Therefore, it’s no surprise to find out that Dr Eric Crampton’s research was commissioned by – you guessed it! – NABIC.

Is it a coincidence that the industry is using this research to counter the threat of increased taxation – bound to be a hot topic at the National Tax Forum in October - while the National Alliance for Action on Alcohol is currently in Canberra lobbying for a change to our tax system?

This is just another example of the alcohol industry making light of what is one of the key health and social problems of our time.

I think the alcohol industry is starting to panic.

Until next week,

Sarah Jaggard
Community Mobilisation Policy Officer

RE BANNED DRINKERS IN THE NT

Dear GrogWatch,

I can't believe it! This is a knee jerk political decision that the government hopes will make the tut tutters think that it is doing something positive about the problem. What next, tattoo XXXX on the offenders' foreheads? That would be about as much use.

It looks a bit like prohibition and that has never worked.  There are already laws that would allow the police to prevent excessive drinking but they are not used.

This is an imposition on a responsible trader's time and costs and will lead to conflict at point of sale.

There are laws for responsible service of alcohol but they are not always observed.  Who is going to police this law and what action will be taken over repeat offenders?

This law will further marginalise problem drinkers.

This law will drive drinking underground and will be supported by a black market.

There will be few favourable outcomes unless there are resources to help blacklisted people who are dependent on alcohol.

This is not a matter of restricting civil liberties but a waste of time and I would be suspicious of conclusions drawn from any statistics.

There is no quick fix to our present alcohol problems but there are many initiatives that would work and the government should be looking at them instead of window dressing. It could take ten years before there is any sustained significant change in statistics - just look at the the tobacco policies.

Society is increasingly being sorted into vested interest groups that are mostly motivated by greed or power. The cattle producers scream because the government banned their exports of live cattle, the miners scream about the carbon tax, the clubs and pubs scream about the proposed changes to poker machine laws, and the liquor industry screams at any move to reduce sales and profits.

Treatment initiatives, legal sanctions and education are all useless unless the alcohol producers and resellers are restricted in advertising. Last night the State of Origin game was watched by probably a million people. With alcohol brands on every players shirt how many flashes of XXXX and VB were transmitted to the viewers?

That's my rant for the week,

Michael

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Alcohol prices 'need reform'
Sydney Morning Herald, 6 July 2011
Top health groups are stepping up pressure on the government to lift the price of cheap alcohol to curb excessive drinking. The leaders of 15 health groups are converging on Parliament today to press the government for a full debate on alcohol tax reform at the October tax summit.

Cheap wines worry doctor
Sydney Morning Herald, 11 July 2011
Surgeon John Crozier operates on some of the 1500 Australians sent to hospital every week as a result of alcohol and can't understand why wine should sell for as little as $2 a bottle.

Social costs of alcohol 'are vastly inflated'
The Australian, 8 July 2011
The alcohol and hospitality industries are countering the threat of increased taxation by promoting new academic research that claims the negative costs of alcohol to the community have been routinely exaggerated by at least $10 billion.

Alcohol claims Exaggerated: NABIC
The Shout, 8 July 2011
New research has shown the social cost of alcohol to the Australian community has been vastly overstated and then endlessly repeated by the mainstream media in opinion pieces and editorials.Recent estimates put the annual cost at more than $15 billion but alcohol and hospitality industry bodies have hit back at this figure, citing new academic evidence.

18-year-olds 'too immature to drink'
Adelaide Now, 10 July 2011
The most powerful clinical body within the WA Health Department has called for an increase in the legal drinking age to 20 or 21. The Clinical Senate of WA has presented a position statement to Health Minister Kim Hames urging the move as one way to combat rampant alcohol abuse and its impact on the health system and young lives.

Liquor outlets worry Casey residents
Packenham Cardinia Leader, 11 July 2011
Residents are concerned about the high number of liquor shops in Casey.  The Department of Justice lists 60 liquor outlets in the area, with another bottle shop opening in Berwick last month.