Friday
6th April 2001
BUNDABERG IN HIGH SPIRITS
The Member for
Hinkler, Paul Neville’s tireless efforts on behalf of Bundaberg
Rum and ‘Bundy’ drinkers everywhere came to fruition this
week, with the passage of new alcohol excise rates through the Senate
that have slashed the price of pre-mixed spirits by 15–20%.
“This is terrific news for Bundaberg, and a major
victory for spirit drinkers and producers such as Bundaberg Rum,”
said the Executive Director of the Distilled Spirits Industry Council
of Australia (DSICA), Mr Gordon Broderick.
“The increasing popularity of Bundaberg Rum pre-mix
around the country not only ensures that drinkers are switching to
this Australian icon, but Bundaberg Rum’s continued success also
strengthens a very important part of the local Bundaberg economy.”
This week’s passage of the new alcohol excise rates
enshrines in legislation the Government’s 1998 commitment that
a can of pre-mixed spirits, such as Bundaberg Rum and cola, should
be taxed basically the same as a can of beer. Even though a can of
beer, pre-mixed spirits, or wine-based designer drink are all basically
the same size and alcohol strength, pre-mixed spirits used to pay
excise about twice that paid by beer, and wine-based designer drinks
paid no excise at all.
“Paul Neville’s persistent representations
and influence amongst his Government colleagues played an important
part in correcting this long-standing inequity between brewed and
distilled drinks.”
“Indeed, so tirelessly did Paul campaign on behalf
of Bundaberg Rum and Bundaberg drinkers that the issue became known
in the corridors of Parliament as the ‘Bundaberg clause’.”
The Government’s commitment, in place since 1 July
2000 as part of the new tax system, has led to a significant reduction
in the excise paid on all pre-mixed spirits, delivering savings of
some 15–20% to pre-mixed spirit drinkers and significant flow-on
benefits to the industry, hoteliers and retailers.
“Aussie drinkers have enthusiastically responded
to the reduced price differences between beer and pre-mixed spirits,
switching their preferences from other ready-to-drink (RTD) categories
and bottled spirits to the convenience and variety of pre-mixed spirits,”
said Mr Broderick.
“This is to be welcomed as pre-mixed spirits responsibly
contain a consistent and measured amount of alcohol comparable to
beer,” said Mr Broderick. “Just as there is the same amount
of alcohol in a nip of spirits as in a pot of beer or glass of wine
(1 standard drink), there is basically the same amount of alcohol
in a can of pre-mixed spirits as in a can of beer.”
“This historic alcohol tax reform not only delivers
substantial savings to Australia’s spirit drinkers and certainty
to the industry, but is a welcome first step towards recognising that
‘alcohol is alcohol’ and should be taxed according to its
strength, not method of production,” said Mr Broderick.
