Media Release 16 April 2008

DSANZ submission on Alcohol Advisory Council Amendment Bill

The Distilled Spirits Association of New Zealand (DSANZ) has today presented its oral submission to the Health Select Committee on the Alcohol Advisory Council Amendment Bill currently before Parliament.

The DSANZ broadly supports the direction of the Bill, which sets out changes designed to simplify the setting of levies on alcohol drinks that fund the Alcohol Advisory Council (ALAC) and its programmes. It proposes a number of new amendments to address anomalies and further simplify the process by which the levies are set and administered.

The DSANZ recommendations include that:

• a uniform levy base rate apply across all beverage types
• any new base rate apply for five years (in line with ALAC’s strategic plan period), with changes within this period limited to CPI movements
• Treasury have exclusive responsibility for calculating the levy
• any adjustment to the levy be gazetted 28 days ahead of implementation
• decisions to adjust the levy be publicly explained by ALAC and or Minister(s)
• a drinks industry representative be included on the ALAC board

The DSANZ Chief Executive, Mr Thomas Chin, said the submission was made to support necessary reform of the levy setting system, which was established 32 years ago. “Our industry strongly supports ALAC’s primary objective to promote moderation in the use of liquor. In addition, it provides about one-third of the $12 million collected annually by way of the levy. On both counts, the efficiency and effectiveness of the levy system are of vital interest to our members.”

The DSANZ submission on the Bill can be viewed at www.distillers.co.nz

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