NZIER Cost Of Alcohol Harms In New Zealand Estimate A Staggering $9.1 Billion

Alcohol Healthwatch welcomes NZIER costs of alcohol harms in New Zealand report released yesterday.

The report commissioned by the Ministry of Health estimates the total cost of harms from alcohol at a staggering $9.1 billion dollars.

Just a couple of weeks ago New Zealand’s Police Commissioner Andrew Coster floated imposing restrictions to availability and price of alcohol, in response to a story on Police resources directed towards alcohol harm prevention. That story highlighted the well-evidenced fact that alcohol is New Zealand’s most harmful drug.

Alcohol Healthwatch agreed with the Commissioner that imposing more restrictions on alcohol availability and increasing the price would be positive evidence-based measures for any Government to consider. The last several Governments have been presented with recommendations for change to alcohol policy.

The Law Commission in 2010, the Ministerial Forum on Alcohol Advertising in 2014 or more recently the Government Inquiry into Mental Health and Addiction (He Ora Oranga) in 2018 all highlighted the several key policy areas to address alcohol, including the affordability of alcohol, considering how available alcohol is in our communities and how alcohol is marketed, especially to young people.

The alcohol industry worked hard to prevent an alcohol excise tax increase this year, bemoaning its introduction last week.

Previous recommendations from the Ministry of Justice (2014) evidenced that an 82% increase in excise tax would save $339 million in year one, and $2.4 billion over 10 years, only raising the price of a $7 bottle of wine to $8.20. A minimum unit price of $1.20 would have a net cost saving of $86 million in the first year and $624 million over 10 years. Alcohol excise tax increases and minimum unit price regimes on alcohol have been implemented overseas with positive results.

For example, a recent evaluation of Scotland’s minimum unit price regime found evidence it had a positive impact on health outcomes, including addressing alcohol-related health inequalities. It reduced deaths directly caused by alcohol consumption by an estimated 13.4% and hospital admissions by 4.1%, with the largest reductions seen in men and those living in the 40% most deprived areas.

The report made the following estimates:

- $9.1b estimated total cost of alcohol harm based on disability-adjusted life years

- $4.8b associated with disability-adjusted life years from Fetal Alcohol Spectrum Disorder (FASD)

- $1.2 b associated with disability-adjusted life years from alcohol use disorder

- $281m - intimate partner violence (for alcohol use disorder alone)

- $74m - child maltreatment (for hazardous drinking alone),

- $2.1b in societal cost of road crashes where alcohol was a factor

- $4b in lost productivity associated with alcohol use, including FASD, crimes and workplace absenteeism

- $810m, predominantly in health and ACC spending.

The report recommends changes to the alcohol levy, collaboration across the system to improve the evidence base and action on FASD.

"We welcome the Minister of Health Hon Dr Shane Reti’s announcement on FASD earlier this year, and we look forward to working with Government and communities and whanau to take action on FASD. We also need to take action on some of the upstream policy levers as well," says Alcohol Healthwatch Executive Director Andrew Galloway.

"The most staggering part of the cost estimates for me, is evidencing how much this is felt by everyone in society in Aotearoa New Zealand," says Andrew. " The harms from alcohol are felt by more than the drinker, and this latest report evidences the staggering cost that we all end up paying. We know there is strong public support for change in alcohol policy in Aotearoa New Zealand."

© Scoop Media