Page 4181 - Week 14 - Tuesday, 29 November 1994
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MS FOLLETT: Madam Speaker, first of all, I confirm that on 24 November I did indeed announce that from the next period, which is from 1 January 1995, the liquor licence fees for low-alcohol beverages in the ACT would be removed. Our definition of low-alcohol beverages - and it used to be the New South Wales definition as well - is liquor which contains 3.5 per cent or less ethanol by volume. That is the usual definition of a low-alcohol product. I am aware that, with effect from the next licensing period, New South Wales has changed its definition now to include wine which contains 6.5 per cent or less ethanol by volume. If that wine were a beer, it would not be a low-alcohol beer. So, there is an inconsistency in New South Wales in its treatment of different alcoholic beverages.
Madam Speaker, for my own part, I can only wonder whether they are also going to have a different definition for low-alcohol spirits and, if so, where they might set that definition. I think we have to bear in mind two things. First of all, the reason for abolishing the tax on low-alcohol products is to encourage people to drink low-alcohol products - not lower-alcohol products. If people were to drink low-alcohol wine instead of beer, they would, in fact, be consuming far more alcohol.
Mr De Domenico: If they drank it to the same extent as beer.
MADAM SPEAKER: Order! Let the Chief Minister finish, Mr De Domenico.
MS FOLLETT: In order to attract people to the low-alcohol product - not the lower-alcohol product - we have abolished the tax on low-alcohol beer. Madam Speaker, I will, of course, keep under review this further change that the New South Wales Government has made. Nevertheless, in my heart of hearts, I cannot see a scenario developing where low-alcohol wine would be widely consumed by people who drink wine. I think it is very much a minority beverage. I would expect that in a campaign encouraging people to consume less alcohol, particularly if they are driving and drinking, the lowest-alcohol products would hold sway.
Mr De Domenico: Water.
MS FOLLETT: Indeed, Mr De Domenico, water is a perfectly fine beverage. Drink plenty of it. So are tea and coffee. But, when it comes to alcohol, it is the low-alcohol product which, I believe, we should be promoting. By "low-alcohol" we mean 3.5 per cent or less ethanol by volume. New South Wales has changed its definition. I will see what happens with that low-alcohol wine. In the meantime, Madam Speaker, the steps we have taken, providing that they are passed on by the pubs and clubs, ought to have some incentive effect for people to switch from the high-alcohol beers to the low-alcohol beers, because there will be a real reduction in the price of a middy or a schooner.
MR HUMPHRIES: I ask a supplementary question. The Chief Minister implies that the decision to adjust the ACT's franchise fees on alcohol was taken before a change in the position of the New South Wales Government. Firstly, is it not true that the New South Wales Government had already announced that it was reducing franchise fees on low-alcohol wine before the ACT Government made its decision, and therefore it was
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