New Zealand Law Commission calls for sweeping alcohol reforms

An end to 24 hour licensing, raising the legal purchase age and higher alcohol taxes are among the reforms called for by the New Zealand Law Commission.

Launching the report, Alcohol in Our Lives: Curbing the Harm, Law Commission President Sir Geoffrey Palmer said the 153 recommendations contained in the report provided a blueprint for reducing both the short and long term effects of alcohol misuse on society.

“Those who enjoy alcohol socially and drink in a low risk manner will be little affected by the Law Commission’s recommendations. Our reforms are firmly targeted at reducing the harms associated with heavy drinking and drinking to intoxication. To do this we need to ensure that alcohol is promoted, sold and supplied in a manner which better reflects the risks and responsibilities associated with its consumption.”

The Commission had undertaken a three month public consultation and received over 2,900 submissions on its original Issues paper, Alcohol in Our Lives, published in J2009. Sir Geoffrey said the size of the final report and number of recommendations reflected the very broad ranging terms of reference given to the Commission. These required the Commission to examine not only the licensing system but also alcohol pricing and promotions, parental responsibilities, and how to ameliorate the adverse effects of alcohol on health and crime.

Key policy recommendations include:

• the introduction of a new Alcohol Harm Reduction Act;

• raising the price of alcohol by an average of 10% through excise tax increases;

• regulating irresponsible promotions that encourage the excessive consumption, or purchase, of alcohol;

• returning the minimum purchase age for alcohol to 20;

• strengthening the rights and responsibilities of parents for the supply of alcohol to minors;

• introducing national maximum closing hours for both on and off-licences; (4am and 10pm respectively )

• increasing the ability of local people to influence how and where alcohol is sold in their communities;

• increasing personal responsibility for unacceptable or harmful behaviours induced by alcohol, including a civil cost recovery regime for those picked up by the police when grossly intoxicated;

• moving over time to regulate alcohol advertising and sponsorship.

Sir Geoffrey said while there had been many benefits associated with the liberalisation of New Zealand’s liquor laws in 1989, the resounding message the Commission had received from the public was that the pendulum had swung too far. A saturated alcohol market had led to intense competition and the over commercialisation of alcohol, with alcohol being sold at pocket-money prices. One of the consequences of this, he said, was that “we risk losing sight of its status as a legal drug, capable of causing serious harm to others.”

Sir Geoffrey said there is growing research evidence of a causal link between alcohol intoxication and aggression. The Police were in no doubt that one of the key drivers behind the escalating levels of violent crime in this country was the abuse of alcohol.

While many New Zealanders drank in a low-risk manner, the uncomfortable truth was that a very significant minority – as many as 25% of all drinkers – drank heavily when they drank. And a much larger number engaged in a persistent pattern of episodic binge drinking – the worst pattern of drinking for one’s own health and for inflicting damage on others.

In regard to alcohol policy, Sir Geoffrey said that the international evidence was clear that the most effective policies to reduce alcohol-related harm were those which targeted the availability, price and promotion of alcohol. Policies which targeted cheap alcohol were particularly important because research showed low cost alcohol was favoured by young and heavy drinkers.

A recommended 50% increase in excise tax would push alcohol prices up by an average of 10% but would differentially target low cost alcohol which is known to drive most acute harm.