Alcohol (Minimum Pricing)

Andrew Griffiths Excerpts

Wednesday 2nd February 2011 Westminster Hall

[Nick Smith (Blaenau Gwent) (Lab)]

I am pleased to have secured this debate. I thank Mr Speaker for selecting it and I am glad that it is taking place under your assured chairmanship, Mr Sheridan.

Alcohol pricing is of great concern to many MPs. The subject has been raised by Back Benchers on both sides of the House in recent Home Office, Health and Business questions, and it has been the subject of a number of early-day motions that received cross-party support.

Some say that alcohol misuse, with its related health and social problems, is a major problem in the United Kingdom, so it is right that we should debate how alcohol pricing can help to tackle it. A constituent of mine wrote to me recently, saying that politicians are too reactive and unwilling to offer leadership on difficult issues. The Conservative-led Government have certainly made a start on alcohol pricing, but it is a rather timid one. I hope they can be persuaded to be bold and to act swiftly. If they do not do so, precious lives may be lost and many lives blighted.

The British Medical Association has highlighted the staggering cost of alcohol abuse to the national health service, at £2.8 billion. The British Society of Gastroenterology says that a serious cost is attached to cheap booze, and the UK is now paying the price.

I requested this debate primarily because of my interest in public health, and I am glad to see the Home Office Minister and the shadow Minister here today. We all know that antisocial behaviour, fuelled by binge drinking, can blight our neighbourhoods; and many are affected in their own homes as a result of domestic violence and the breakdown of relationships.

A British crime survey showed that half of all crime is alcohol related. In 2008, the then South Wales police chief constable warned people that

“In Wales you are more likely to be assaulted by someone you know than anywhere else in the UK…alcohol plays a huge, huge role in it.”

Similar findings were set out in the excellent report of the Select Committee on Home Affairs, produced in the previous Parliament under the chairmanship of my right hon. Friend the Member for Leicester East (Keith Vaz); I am pleased to see him here today.

Figures released last week show that Wales has among the highest rates of death in the UK linked to alcohol. Over Christmas in my local area of Gwent, as a result of the Wales drink-drive campaign 95 people were found to be over the limit. Despite the snow and ice and the wind chill factor to be found at 1,200 feet—a time when most sober people would not dream of driving—some drivers were on the road and over the limit.

I raised this matter in the Christmas recess Adjournment debate and called on the Government for tougher action. A recent Alcohol Concern report showed that more than 92,000 children and young people under the age of 18 were admitted to hospital as a result of alcohol misuse between 2002 and 2009. Girls are more likely to need hospital treatment than boys. Furthermore, a university of Manchester study found that some young women were consuming more than a week’s allowance of alcohol units in a single night. Excessive drinking leads them to take more risks, such as walking home alone when drunk, particularly after they have sampled a ladies “drink for free” promotion. Since 1970, we have seen a threefold increase in cirrhosis, but it is ninefold for those under the age of 45. The age at which people develop cirrhosis has been falling, and even teenagers are now developing liver failure.

The Welsh Assembly rightly wants to take effective action to help people in Wales, but points out that the main levers for making the most significant change remain with the Government, who have the power to legislate on price, licensing and advertising—the Government did not accede to the Welsh Assembly’s request for alcohol licensing powers to be devolved.

Another problem is the so-called pocket-money priced alcohol on offer in supermarkets. That can undermine local pubs, which are generally places of responsible drinking. My dad was a publican after working as a steelworker, and before becoming a bread delivery man. Other Members will doubtless wish to elaborate on the negative effect that such pricing can have on pubs and the local community.

Before going any further, may I say that when seeking to reduce harmful drinking we must, in tandem, provide adequate funding for alcohol research, treatment and prevention programmes, with sufficient training for health professionals to detect and manage those who have alcohol misuse problems.

The Minister with responsibility for public health, the Under-Secretary of State for Health, the hon. Member for Guildford (Anne Milton), said:

“The Government alone cannot improve public health; we need to use all the tools in the box.”—[Official Report, 21 December 2010; Vol. 520, c. 1351.]

I would argue that alcohol pricing is a high-powered tool—and one that should be used now.

The Government may be about to act—I give credit where it is due—but their proposed minimum price is too low. It covers only duty and VAT. As the National Retail Federation said, the Government’s “duty plus VAT” definition woefully fails to cover the real cost of alcohol; 40p for a litre of cider can hardly be considered positive action. For me, it is the duty of Government to protect and promote the health of their citizens. I am unpersuaded by the concern expressed by the Wine and Spirit Trade Association that minimum pricing will hit responsible drinkers and hurt the poor the most. I cannot believe that responsible drinkers expect to get their alcohol at “duty plus VAT” prices, with no allowance for production or distribution costs.

Furthermore, as the Alcohol Health Alliance points out,

“low alcohol prices means that responsible drinkers are subsidising the behaviour of the 25% of the population who are drinking at hazardous or harmful levels.”

The effect of a minimum price on moderate drinkers will be low, as they consume less alcohol. If a 50p minimum price were introduced, it would mean an increase in spending on alcohol of less than 23p a week for a moderate drinker; but a heavy drinker could pay slightly more than £3 a week.

As for the poor being most affected by high prices, I cannot repeat too often that alcohol misuse costs us £2.8 billion. If we include the cost of crime and absenteeism from work, the bill would be much higher. The Government clearly need some more detailed research. We know that the National Institute for Health and Clinical Excellence, the British Medical Association, the Association of Chief Police Officers and others have called for a realistic minimum price for alcohol. How can the Government justify a minimum price for alcohol that covers only taxes but not the production and distribution costs? Will that really reduce binge drinking in our towns, particularly among vulnerable young women? Perhaps the Minister will tell us.

A spokesperson for the British Liver Trust said on BBC News 24 that the Government’s proposal would save 21 lives a year. That is good, but I understand that research commissioned by the Department of Health demonstrates that a minimum unit price of 20p, 30p, 40p and 50p would prevent 30, 300, 1,300 and 3,300 deaths respectively.

[Andrew Griffiths (Burton) (Con)]

The hon. Gentleman wishes to increase the price of alcohol on the supermarket shelves and discourage the unscrupulous pricing behaviour that has been displayed. However, one of the unintended consequences of minimum pricing is that it could skew the market and encourage people to drink spirits such as vodka, which is becoming an increasing problem among young drinkers.

[Nick Smith]

The point about discouraging young people is powerfully made, and I know that unintended consequences can be a problem. That is why we need more research. Having said that, I still think the price suggested by the Government is way too low.

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[Andrew Griffiths (Burton) (Con)]

I congratulate the hon. Member for Blaenau Gwent (Nick Smith) on securing this hugely important debate. We all see the consequences of drinks pricing in our high streets and A and E departments, so I pay tribute to him for recognising the importance of this issue.

I am the vice-chairman of the all-party parliamentary beer group and the MP for Burton. I am proud to say that Burton is the home of British beer. We have Carling Black Label, Marston’s Pedigree and Punch Taverns, which is the biggest pub company in the country. The Minister has been incredibly generous with his time. He has met members of the all-party parliamentary beer group, the Save the Pub group and the Campaign for Real Ale group. He has met the brewers and the pub owners and taken time to listen to the concerns and issues that so many of them face, and I thank him for that. I also thank him for recognising that pricing in the supermarkets is dangerous and is having an impact on our young people and on society. As a Government, it is important that we take action to tackle the problem. I doubt whether there is anybody in this Chamber who finds it acceptable for supermarkets to use alcohol as a loss-leader or as a giveaway to get people through the supermarket tills, yet that is what we are seeing daily.

I am glad that this Government have had the determination and confidence to produce legislation that, for the first time, not only recognises that cheap booze is a problem for society but sets out to do something about it. Sadly, though, like Oliver in “Oliver Twist”, I have to say, “Please, Sir, can I have some more?” None of us here believes that the price level that has been set, although well intentioned, will have a massive effect on drinking behaviour, particularly among young people.

It is interesting to put the whole matter into context. In 1987, the price of a pint of lager in the pub was £1, and in an off-licence 70p. By 2010, the pub figure had gone up to £3 and the off-licence figure had stayed pretty much the same at about £1. We have seen prices in pubs increase by more than prices in off-licences over that period.

[Mrs Jenny Chapman (Darlington) (Lab)]

I recently met the chair of one of the local working men’s clubs in my constituency. After a debate about whether or not the club should allow in women, about which we did not agree, we spoke about the pricing of alcohol. The club is concerned about the pricing issue. It believes that aggressive, cheap offers from supermarkets and corner shops are a big attack on its very survival. Historically, working men’s clubs are a key part of social life, particularly in the north-east, and we need to have that at the front of our minds when we consider minimum pricing levels.

[Andrew Griffiths]

If the hon. Lady would like to come to Rolleston working men’s club in my constituency, she will be welcomed with open arms and provided with alcohol in a safe and regulated environment. We all recognise that the pub and the working men’s club provide a safe, regulated environment in which people can enjoy a pint or a glass of wine and interact socially. They are the social hub of our communities. Unfortunately, supermarkets’ pricing and their use of alcohol as a loss- leader is making it almost impossible for our pubs and clubs to compete. As a result, we have seen the shift in drinking behaviour. As I am sure that the Minister is aware, 70% of all alcohol is sold through the supermarkets. If we go back 20 years, the difference in the sale of beer between pubs and off-licences was 80:20; now, it is 50:50. We are seeing supermarkets constantly eroding pub sales.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The hon. Gentleman is dealing with a very important point that relates to the social issue associated with drinking. I am talking about parents who may be buying alcohol regularly from the supermarkets at a very low price. Poor parenting skills can result, which will lead to parents having problems at home with their children. That is a hidden issue that results from the pricing policy, and it needs to be resolved.

[Andrew Griffiths]

I agree with the hon. Gentleman. However, there are those who say, “Why should we penalise someone who wants to buy a 24-pack of strong lager and take it home and drink one can a night for 24 days? Why should we penalise that?” The reality, however, is different. The clients at the Burton addiction centre in my constituency will talk about the impact that cheap booze has on fuelling people’s drinking consumption.

[Mr Christopher Chope (Christchurch) (Con)]

My hon. Friend seems to be against these loss-leaders. Would he outlaw loss-leaders for chocolate, salt, butter and other things that are not good for us if we take them in excess?

[Andrew Griffiths]

My hon. Friend makes a very important point. However, I cannot remember the last time I was on Burton high street and saw two guys knocking seven bells out of each other over a Toblerone. I also cannot remember the last time I was in Queen’s hospital A and E and doctors were pumping somebody’s stomach because they had overdosed on too much butter. The reality is that alcohol is a very different beast from things such as chocolate.

[Mr Chope]

Surely the issue is not whether alcohol is distinct from other products, but the use made of it by the people who consume it. Is my hon. Friend not in danger of victimising people, particularly poor families, who benefit from these loss-leaders? He is trying to put forward the argument that, by penalising those poor families, he will tackle the problem of binge drinking, which I do not think he will.

[Andrew Griffiths]

I recognise my hon. Friend’s concern, but the people we are penalising are the taxpayers, who have to pay for the consequences of binge drinking through the costs of extra policing and the impacts on A and E departments. Furthermore, if I am being brutally honest it is those poor families who suffer most as a result of cheap alcohol. Young people and poor families are much more price-sensitive to alcohol than others.

[Dr William McCrea (South Antrim) (DUP)]

Surely there is a more basic problem. The nation’s increasing addiction to alcohol is placing a huge strain upon the NHS—£2.7 billion a year. Surely we are talking on many occasions about treating the consequences of alcohol-related harm, rather than taking early action to prevent alcohol problems.

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[Andrew Griffiths]

The hon. Gentleman gets right to the nub of the problem. I think we all recognise that a pub or a club is a supervised environment in which people can safely consume alcohol. When I was a young man, many was the time when I might have had a half of lager too much, or a half of Marston’s Pedigree too much, and somebody—my parents, my friends or somebody else a bit older and wiser than me—might have said, “Right, son, you’ve had enough, it’s time to go home”, or the barman might have said, “I’m sorry, sir, I’m not serving you any more, you’ve had too much”. However, the reality now is that too many young people are drinking to excess in an unsupervised manner.

The real problem is not only the price disparity. In recent years, there has been a massive increase in the regulatory burden placed on pubs and clubs—the smoking ban, for example—and a constant increase in the amount of red tape and supervision associated with dealing with the consequences of binge drinking. Actually, in many cases the pub only sells the last pint, because young people in particular are “pre-loading” before going out. When they get to the pub—increasingly, at later times in the evening—they are half-cut and the pubs have to deal with the consequences of that, including the fights and other problems. The danger is that we are loading too much of the burden on to pubs, when actually the supermarkets are driving a lot of this antisocial behaviour.

The previous Government did a lot of work with publicans to prohibit the “two for one” offer, the “happy hour” and the “drink as much as you can for a tenner” promotions that were fuelling excessive drinking. The pub industry, working with Government, took action to try to prevent those promotions—and yet it is perfectly okay for someone to buy a 24-pack of Stella or another strong lager from a supermarket. There are no restrictions on that.

Supermarkets are using beer as a loss-leader. We have seen the impact that supermarkets have had on milk and the dairy market through driving down the price of milk. They are doing the same with bread, and now they are using alcohol as a loss-leader. That is very dangerous and is sending out completely the wrong message to young people.

I thank the Minister very much for what the Government have done so far, but it is not enough. We need to go further. What we are all hoping for is some recognition today that this is the first step on a journey. The Minister will himself admit that if we agree that cheap alcohol is a problem, the question must arise, “How cheap is too cheap?” Is he honestly saying that he thinks we have got to where we need to get to on alcohol pricing, when we are still selling cider at 20p a can, beer at 38p a can and wine at £1.99?

If the Government and the Minister’s intentions are to be delivered, any solution must lead to an increase in the price of alcohol on the supermarket shelf. We need the Minister to take that idea forward and drive it home. I know that, like me, he has been frustrated that, with below-cost selling, we have not yet been able to find a solution that satisfies both the lawyers in Brussels and the industry here. I hope that today, he will issue another declaration to the industry, asking it to come forward with ideas on a meaningful definition of below-cost selling that includes the cost of production, so that we can see an increase in the price of alcohol on supermarket shelves and begin to tackle some of the supermarkets’ deeply dangerous activities.

[Several hon. Members]

rose—

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[Andrew Griffiths]

The hon. Gentleman is absolutely right. Coors, a fine brewer in my constituency, has extended the terms on which it pays its suppliers from 30 days to 90 days. It is having a considerable impact, particularly on small businesses.

[Greg Mulholland]

My hon. Friend makes a good point.

Why would supermarkets not welcome either a genuine ban on below-cost selling, which I support, or a minimum price per unit, which other hon. Members support? Those approaches would increase their revenue, but they sell cheap alcohol for other reasons. Let us face it: supermarkets have virtually destroyed the stand-alone off-licence trade in this country. Names such as Threshers disappeared some time ago. We must remember that pubs, working men’s clubs, stand-alone off-licences and corner shops cannot sell alcohol below cost, because they rely on a reasonable margin on alcohol for their profits. There is something more sinister going on. Below-cost selling is a way to attract people into stores and maintain supermarkets’ power over manufacturers, some of which, unlike Coors, are too small to argue. That situation is causing a problem.

I accept that the issue is difficult, but we must come up with a definition of below-cost selling that includes the cost of production. I realise that we are on the first step, and I accept that the issue is difficult to define, but to say that below-cost selling simply involves tax suggests that supermarkets buy alcohol for nothing. They might take a long time to pay, but they clearly pay something. The price that they pay is often unreasonable, exactly as it is for the milk that they purchase from dairy farmers, but there is nevertheless a price. It cannot be impossible to include in the equation the price that the supermarkets must pay. That is the challenge, and I look forward to working with the Minister on it over time.

I accept some of the concerns aired by the hon. Member for Christchurch (Mr Chope). This is not about social engineering, moralising or saying that we should not sometimes welcome a reasonable deal and the chance to get a couple of pounds off a bottle of wine in a supermarket. Indeed, many people are concerned that if we set a high minimum price, that chance would disappear. There would also be other unintended consequences. For example, apart from increasing supermarket revenues, which is surely perverse, it could have the surprising effect of pushing up the price of a bottle of wine that currently costs £3.50 and is not worth more than that, and making good bottles of wine more expensive, which is not what any of us want. People should be allowed to enjoy alcohol sensibly without sudden unacceptable inflationary pressures.

I am concerned to stop the irresponsible selling of alcohol, which I am glad to say has been largely stamped out in the on trade but is, sadly, still alive and well, particularly in supermarkets. The Government have made a good start, but they can go further. I know that the Minister is listening, and I look forward to working with him and his team to close the unacceptable gap that has done so much damage to pubs, which are part of the solution to problem drinking, and to do something—we must recognise that it is only something—to deal with the problems associated with alcohol abuse that other hon. Members have rightly discussed.