A flawed concept !

The New South Wales government is being urged to abate the binge drinking epidemic by pricing alcohol out of reach of many people.  In particular, wine casks are in the cross hairs.   Four litre wine casks are sold on special for about ten dollars -  and it is suggested that there be a minimum floor price on all alcohol - and that these casks be increased in price to fifty dollars.

No government would be so stupid as to go ahead with such a massive price hike, but it would be tempting for a cash strapped government to consider implementing a lesser plan.   Thinking people would  do well to ponder the mechanics of a higher price on wine casks.   If the retail price increases - who gets the money ?

It certainly wouldn't be handed to the people who grow the grapes, and it would be unlikely to remain in the tills of the bottle shops.   The obvious way to increase the retail price would be to slap on an extra tax - and that would send the money directly into the government coffers.

Of course a pious government would claim this unexpected windfall would be quarantined from " consolidated revenue " and it would be ear marked for special services connected with alcohol abuse, but then many people will remember a two cent per litre tax on petrol that was supposed to deliver the nirvana of a decent road system to motorists.   That too was similarly quarantined - until a few years later it simply disappeared into the maw of Treasury's "bottomless pit ".

We should also remember the fiasco of the " Alco-Pops " price hike.   There was alarm that teenage girls were becoming too fond of these alcoholic drinks and a punitive tax was slapped on them to  take them out of financial reach.    Sales of hard liquor increased sharply as the teenagers quickly learned to mix their own cocktails - and in most cases the alcohol content of these was sharply higher than what Alco-Pops offered.

Their is a direct correlation between price and consequences that exists with both alcohol and cigarettes.   Efforts to make people quit smoking saw the price of a packet of cigarettes increase sharply - and some people did quit the habit.   Those that continued to smoke simply paid the higher price and this resulted  in less money to put food on the table for the family .  A sharp increase in the price of alcohol would have a similar effect.   The item highest in demand is the one that gets the money in any household budget - and in many households, alcohol tops that list.

There is also a risk of a crime surge if alcohol offers a rich reward for criminals.  When raids occur on convenience stores a common pattern emerges.   The criminal clears out the till - and then seizes as many packets of cigarettes as possible.   High value in relation to bulk - and easily turned into cash.

It is said that those who fail to learn the lessons of history are doomed to repeat those mistakes.   Taking alcohol out of reach of the masses seems to be just a new form of prohibition - and that was an idea that failed badly in another country !