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04 May 2009

Minimum pricing debate heats up

The campaign, which was launched in March, has received a lot of media attention, not least since it ties in with the debate on binge drinking and the closure of pubs.

Although the British Prime Minister Gordon Brown appears to be against the idea of a Minimum Price, Chief Medical Officer Liam Donaldson reportedly said he was “very pleased” the debate had started.

In his annual report released in March, Mr Donaldson recommended a minimum price of GBP 0.50 per unit of alcohol to help address alcohol-related health and crime problems, and potentially saving GBP 1.0 billion a year.

The GBP 0.50 figure tallies with The Publican’s “Make it the Minimum” campaign, which aims to end irresponsible off-trade deals and encourage people back to pubs.

Many welcomed Mr Donaldson’s call on minimum pricing, including the Campaign for Real Ale (CAMRA), Alcohol Concern, MP John Grogan and media personality Janet Street-Porter.

The Prime Minister’s hand on minimum pricing could eventually be forced. Earlier this year, Scotland unveiled plans to introduce a minimum price – and Wales and Northern Ireland are also pushing hard on the issue.

Despite this, opposition to minimum pricing last week remained strong, while doubts over its legality lingered, The Publican admitted.

The only retailer to date to comment on the issue was Peter Marks, CEO of the Co-op, the UK’s fifth biggest food retailer with more than 3,000 outlets and a market share of 8 percent. He said that minimum pricing for alcohol would punish the majority of responsible drinkers by forcing up prices.

The Association of Licensed Multiple Retailers said it is against minimum pricing, but wants a ban on below-cost selling.

Mark Hastings, communications director at the British Beer & Pub Association, raised fears that if a minimum price was introduced the health lobby would “focus” on it and push it up year on year.

Mr Donaldson’s recommendations include introducing a minimum price of GBP 0.50 per unit as an immediate priority; recognising “passive drinking” as a key issue and change licensing laws to reflect its impact; and forging a national consensus, prompted by government, that alcohol consumption as a whole should be reduced.

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