Licensing Act 2003 (Mandatory Conditions) Order 2014

Lord Tyler Excerpts

Monday 12th May 2014 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I am grateful again to the Minister for his explanation, and I admire his ability to keep going today, as this is the fifth debate in which he has taken part. I do not intend to repeat the comments I made previously when this matter was debated. He will recall—he alluded to this—that I challenged the Government on the robustness of the evidence he provided for the policy and its impact. Indeed, I used the 32nd and 35th reports of the Secondary Legislation Scrutiny Committee. I concurred with its conclusion that the effect of this policy, as outlined in the order, “appears to be negligible”. As I recall from the debate, he said that the level of reduction in alcohol consumption would be 10.5 million units in the first year. When the matter was considered further by the committee, it said that that was equivalent to one large glass of wine a year per individual. That does not have quite the same impact as saying 10.5 million units. There was no robust evidence to show that those who most needed to reduce their alcohol intake would do so under this policy.

The Minister alluded to the letter that he wrote to me following the debate. I admit that I had not expected this order to come before us again. Had it done so with no changes, my comments would be very brief, but there are significant changes and new evidence to which he did not refer today. It might be helpful if I did so. The Secondary Legislation Scrutiny Committee in its 40th report drew attention to those changes. I share the committee’s disappointment that neither the Explanatory Memorandum nor the impact assessment was revised on being re-presented to your Lordships’ House in light of the strong and justified criticisms highlighted in the previous debate. It would have been helpful if those had been taken into account before re-presenting the Explanatory Memorandum and impact assessment to your Lordships’ House.

I will raise two issues on which I seek the Minister’s comments. In terms of new evidence, consideration of the Budget is important in assessing the impact of this policy. As was evident from the previous debate, there would be a marginal impact, which has failed to convince the Secondary Legislation Scrutiny Committee that the costs to industry, which would be significant in implementing the permitted pricing policy, could be justified. The impacts would be low and marginal—one large glass of wine a year. The Wine and Spirit Trade Association claimed that the Budget would save the industry £175 million in additional duty payments. That, in turn, would bring down the permitted price at which alcohol would be sold. If the Minister is relying on a higher permitted price to reduce alcohol consumption, he perhaps ought to talk to the Chancellor, who has ensured that the permitted price will be reduced by the reduction and freezing of duty on alcohol.

Other evidence from the Cardiff University study was presented in the committee’s report. I do not know if the noble Lord has had an opportunity to read it, but it makes interesting reading around the reasons for a significant fall in violent crime. The study was unconvinced that alcohol pricing is the most significant factor. There was a 12% reduction in injuries from violent incidents in 2003 and, for the fifth consecutive year, the NHS has recorded a decrease in injuries from violence. This issue has to be looked at again, given the large implementation costs and the impact on the industry. What added value will this policy change brought forward by the order produce for the NHS and policing if you also take into account the economic and social factors, and the policing initiatives that have led to the fall in violent crime? What additional change will this order bring about?

Finally, the impact assessment suggests that doubling the level of alcohol excise duty will reduce alcohol-related mortality by an average of 35%, traffic-crash deaths by 11%, sexually transmitted diseases by 6%, violence by 2% and crime by 1.4%. Although the impact assessment does not specify the timeframe, it says that that would be the impact. That would be pretty impressive but it is not what this policy seeks to do. It is based only on maintaining the current level of excise duty, but the Chancellor reduced it in the Budget. Can we take it that we should now seek an increase following the reduction in excise duty?

We all want the harms from excess alcohol, to which the noble Lord referred in his comments on domestic violence, reduced. However, I have serious concerns.

[Lord Tyler (LD)]

The noble Baroness seems to be coming to the end of her speech. Can she be optimistic for once? We have so much pessimism from the Opposition. Will she make a firm commitment? Does the Labour Party understand that the principle of minimum alcohol pricing is important? Are we not all in favour? This order may not go far enough for her; I understand that, but could she for once be optimistic and say that this may be a step in the right direction?

[Baroness Smith of Basildon]

There is a coalition Government and it is pretty hard to be optimistic. It is not about minimum alcohol pricing; that would be a completely different debate. The Government have ruled it in, then ruled it out—it will happen, it will not happen. This is about a different issue altogether. I am questioning whether the measures taken and the wonderful responses and results they are supposed to give really measure up. The Secondary Legislation Scrutiny Committee does not think so, and neither do I.