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The Martlet

HST can encourage healthier drinking, says report

Jan 06, 2010 | Volume 62 Issue 17 | No comments
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While alcohol-related deaths are on the rise in B.C., increasing liquor prices can target heavy drinking, says a recent report from UVic’s Centre for Addictions Research of B.C.

The report, “Alcohol Pricing, Public Health and the HST: Proposed Incentives for B.C. Drinkers to Make Healthy Choices,” cites international studies that suggest price regulation of alcohol is an effective way to shape market behaviour and curb destructive consumption.

B.C. liquor prices will be altered with the introduction of the 12 per cent Harmonized Sales Tax (HST), which will harmonize the Provincial Sales Tax (PST) and the Goods and Services Tax (GST) by July 1, 2010.

“We are saying the B.C. government should modify its alcohol pricing policies now because they will have to make adjustments when they bring in the HST this summer anyway,” said Gerald Thomas, lead author of the report. “So we are saying, why not use this opportunity to try out some principles that target heavy drinking, and that encourage people to make healthier choices around drinking?”

Current pricing policy encourages drinkers to choose coolers with seven per cent alcohol content, as there is a tax increase at that level, after which coolers become more expensive.

Under the new recommendations, each brand of cooler would be divided into three groups: low, moderate and high strength.

After the implementation of the HST, the low-strength drinks would see a three per cent decrease in price, while the cost of moderate-strength drinks would remain constant and the price of high-strength drinks would increase by three per cent, recommends the report.

The report also suggests a minimum price per standard drink — a suggested $1.50 in liquor stores and $3 in bars and restaurants. This would apply throughout all of B.C. and the minimum price would be set to reflect market value while preventing the sale of cheap beverages.

Thomas said that those who buy cheaper drinks often drink more than average, so the minimum price would primarily target excessive drinking. On average in 2008, British Columbians aged 15 and older drank almost a litre more of pure alcohol than they did in 2002.

In other words, drinkers increased their consumption from 475 to 525 standard drinks per year. This has coincided with a rise in alcohol-related deaths, like those caused by cirrhosis, the slow deterioration of the liver. Deaths due to cirrhosis have increased by 38.7 per cent between 2002 and 2007.

However, there is skepticism regarding the efficacy of this approach.

“People are just going to drink the cheapest beer and drink more of it,” said Nick Both, bartender at Felicita’s.

The research centre’s report has been shared with the provincial government but there is no current indication that its recommendations will be implemented this summer.

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