Ministers warned alcohol pricing plans could backfire
Scottish Government plans to bring in a minimum price for alcohol to reduce consumption could backfire, MSPs are being told today.
- By Steve Bargeton, political editor
- Published in the Courier : 17.03.10
- Published online : 17.03.10 @ 09.51am
According to evidence to be given to the Holyrood health committee by the Office of Fair Trading, hiking the price of booze might actually increase sales.
The OFT warns that supermarkets stand to gain from any across-the-board rise in the price of drink and could use hard sell tactics to boost their profits further.
OFT Scottish representative Kyla Brand said, "Higher revenues increase the incentives for retailers to sell more alcohol due to relatively higher returns.
"Without an increase in duty minimum pricing will lead to an increase in the profits of supermarkets and the drinks industry and an increase in marketing promotions.
"There might inadvertently be an increase in alcohol sales because the effect of increased marketing outweighs the effect of the price increase."
Opposition parties want ministers to scrap the minimum price plans and concentrate on enforcing the current laws.
Their case was backed yesterday by government figures which show the law against serving alcohol to drunk people is being flouted.
Justice secretary Kenny MacAskill has revealed that there were just three prosecutions last year -- and only one of those ended up with a conviction and a £70 fine.
Lib Dem justice spokesman Robert Brown said the government should use existing laws before moving to minimum pricing.
"Landlords and shop owners who sell alcohol to people who are already drunk are breaking the law," he said.
"The government wants us to support a new raft of alcohol laws but these figures show our existing laws aren't being enforced.
"Just imagine how many Friday and Saturday night punch-ups could have been avoided if the pub owner had stopped selling to people who had already had enough to drink."
He added, "We need to crack down on those who break the law to show licence holders that turning a blind eye is no longer an option."