Alcohol Strategy (EUC Report)

Baroness Prashar Excerpts

Wednesday 10th February 2016 Grand Committee

Moved by

[Baroness Prashar]

That the Grand Committee takes note of the Report from the European Union Committee, A New EU Alcohol Strategy? (8th Report, Session 2014–15, HL Paper 123).

[Baroness Prashar (CB)]

My Lords, I move this Motion as chairman of the European Union Sub-Committee on Home Affairs, Health and Education, which prepared the report to which this Motion relates. Before I get into the substance, I thank the current and former members of the committee, the former clerk to the committee, Michael Collon, and its policy analyst, Lena Donner, for their assistance with the preparation of the report.

As your Lordships all know, alcohol is a major contributor to loss of life and to the burden of disease in Europe. Harmful and hazardous, alcohol use is associated with a wide range of physical, psychological and social harms. The costs to individuals, communities and society are widely recognised. Europe has the highest per capita alcohol consumption of any region in the world. In 2004, the World Health Organization estimated that in the European Union, 11.8% of deaths of people aged 15 to 64 had causes attributable to alcohol. Alcohol also causes harm to others, through drink-driving or domestic violence, while heavy drinking can cause harm to unborn children. To address these problems, in 2006 the European Commission adopted an EU strategy to support member states in reducing alcohol-related harm. This strategy had five priorities: to protect young people, children and unborn children; to reduce deaths and injuries from alcohol-related road accidents; to reduce alcohol-related harm among adults; to increase education and awareness; and to develop and maintain a common evidence base. This strategy expired in 2012 and so far, it has not been renewed.

The sub-committee on home affairs, with its joint responsibility for health and crime, undertook an inquiry which started in July 2014 and was completed in March 2015. Our aim was to assess the 2006 to 2012 alcohol strategy and in part to determine whether there was any value in further EU action in this area. We took evidence from academics, medical professions, non-governmental organisations and industry representatives. Not surprisingly, the evidence was highly polarised and there was no meeting of minds between the public sector professionals and the alcohol industry. But in assessing the first strategy, it was clear that it is difficult to attribute outcomes accurately to any one policy measure or strategy. This difficulty was compounded by the complexity of the cultural, economic and social differences across member states. Furthermore, we found that there was a lack of research indicators, standardised data collection systems and evaluation mechanisms. The strategy has notably failed in achieving one of its key priorities: to develop a common evidence base.

Another fundamental problem was that the EU has only limited competence in health and that the strategy concentrated on matters where the EU could do no more than encourage action by other member states. It ignored a number of areas where it has competence to take action—for example, on EU alcohol taxation regimes or EU rules on food labelling.

Our witnesses said that there should be further action at EU level and that this should take the form of a new strategy. The public health lobby favoured much more action to combat alcohol abuse, although much of it is outside the competence of the EU. Manufacturers, retailers and advertisers of alcoholic drinks nearly all favour the continuation of the same strategy, but our conclusion was that action is worth formulating at the EU level only to the extent that it supplements and supports what member states do independently.

There is in fact considerable scope for action at EU level that is within the competence of the EU. Our conclusion was that action should not be confined to policies dealing specifically with alcohol misuse, though there should be what is called a “health in all policies” approach in related areas such as food labelling, cross-border marketing and taxation. This would bring greater coherence across EU policy areas while respecting the competence of member states in health matters. We also concluded that action is more effective if targeted at specific populations. Accordingly, EU-level measures should be flexible enough to allow members to adapt them to the national context.

The EU alcohol taxation regime is illogical. While beer is taxed based on its alcohol content, wines and ciders may be taxed only according to the volume of the finished product. This prevents member states imposing duty in accordance with alcohol strength, thereby reflecting the public health risk associated with the product.

Minimum unit pricing, as we all know, is a highly controversial topic and views on it are sharply divided. In spite of the commitment to bring forward such a measure in 2012, the Government have so far only introduced a ban on selling drinks below the cost price —that is, they may not be sold at a loss to the retailer. The Scottish Parliament, by contrast, passed an Act in 2012 to set an absolute minimum price of 50p per unit of alcohol. However, this law was not brought into force because it was challenged in the Court of Justice of the European Union, and in December 2015 the court gave a preliminary ruling that such a measure would be unlawful. Part of the court’s reasoning was that the minimum unit pricing objective of protecting health and life could effectively be achieved through taxation. This neglects the point that the aim of the measure was to target those with the most serious alcohol addictions, and that taxation cannot be easily imposed because of the rigidity of the EU tax structure to which I have referred.

Following this judgment, I understand that the Ministers of the Scottish and Irish Governments have said they are committed to bringing about minimum unit pricing measures. What steps are the UK Government taking to investigate the implications of that judgment? Will they follow the example set by Scotland in pursuing minimum unit pricing measures? Does this judgment have implications for the UK’s existing ban on sale below cost price?

On the other hand, I am encouraged to see that the Commission has undertaken a public consultation on the law concerning the marketing of alcohol. The labelling of alcoholic beverages, however, remains a concern. We recommended that the Government should press the Commission to propose amendments to the food labelling regulations to include information on strength and calorie content, guidance on safe drinking, and to warn of the dangers of drinking during pregnancy. So far, I have seen no evidence that the Government have done so. The regulations are already sufficiently flexible to allow member states to impose such rules domestically, and France has done so. The Government have responded, saying they are concerned about the additional burdens this would place on businesses. Given that labelling is already required, it is difficult to see that that burden would be great.

We also need further cross-border research on alcohol and its effects, and what works. A more strategic approach is needed in the selection of topics for research and how it is commissioned.

Having published our report in March 2014, we granted the Government a two-month extension to the standard two-month deadline to respond to our recommendations. Even with that leeway, however, the Government took almost six months to respond and this debate has taken almost a year to be scheduled.

We recommended that action on specific topics should be taken at EU level. Whether or not this is called a strategy is irrelevant. Since the publication of our report, civil society and member states have called for the renewal of the strategy and the Council, in particular, has called on the Commission to do so by the end of 2016. So far, however, the Commission has not brought forward a new strategy to combat alcohol-related harm or taken any significant action in this area.

In their response the Government said they were broadly supportive of our recommendations, but it was less than clear what precise steps they have taken to encourage the Commission to bring forward further EU action in line with our recommendations. What steps have the Government taken, and what steps are they taking, to bring this about?

While the Commission and the Government were pondering at excessive length their responses to our report, it was receiving a welcome from the Latvian Ministry of Health. Last April, during the Latvian presidency, an informal council was held in Riga and the discussion paper put before the council summarised and endorsed the conclusions of our report. This is a welcome example of the attention that foreign countries give to the reports of this House. I beg to move.

--- Later in debate ---

[Baroness Prashar]

My Lords, I thank the Minister for a very full response. I also thank noble Lords who took part in this debate. In producing the report, we were very conscious of the fact that we did not wish it to be a killjoy report but that we had to take a very balanced and informed approach to the issue. It is very gratifying that all noble Lords who have taken part in this debate have reinforced the recommendations that we made. Therefore, it is encouraging to note that we were obviously moving in the right direction.

I listened carefully to the Minister’s response and wish to highlight two points. On the minimum unit pricing, it would be useful if the Minister would write to me informing me of the implications of the European Union judgment for the UK. On labelling, I know that the Minister mentioned doing this voluntarily, but I still think that it should be mandatory because the voluntary approach is not sufficient. Having said that, we did not have a large quantity of noble Lords speaking in this debate but its quality was very good. I think that all the points have been covered. I again thank all noble Lords and the Minister for his response.

Motion agreed.