1
Joint Oireachtas Committee Hearings on the
Public Health (Alcohol) Bill 2015
23rdApril 2015
Speech by
Minister for Health – Leo Varadkar, T.D.
Introduction
Good morning Chairman and members of the Committee,
I am pleased to be here today to bring these public hearings on the General Scheme of a new Public Health (Alcohol) Bill 2015to a close.
First of all, I want to commend the Chairman, Deputy Jerry Buttimer, the members of the Committee, other members of the Oireachtas who participated in these hearings, and all the invited guests for the sensible and constructive approach that we have witnessed over the past few weeks.
My officials and I have found the presentations and insights presented by your guests very useful. I am confident that these submissions and the report that this Committee will produce will greatly assist me and my officials in the drafting of the final legislation.
Alcohol Misuse
I am sure you all agree that Ireland has a serious problem – we drink too much alcohol. The consumption of alcohol in Ireland increased by 192% between 1960 and 2001, from an average of 4.9 litres pure alcohol per adult to 14.3 litres. Since this peak, alcohol consumption has reduced and in 2013 alcohol consumption per adult was 10.64 litres in 2013. Ireland’s alcohol consumption remains in the top 5 among EU28 Member States. And this Region has the highest consumption in the world. Early statistics indicate that alcohol consumption increased in 2014 from 10.6 litres to 11 litres per person, which is worrying and it suggests that consumption may continue to rise as the economy grows in the absence of any policy change.Furthermore, when we drink, we tend to binge drink. Patterns of drinking, especially drinking to intoxication, play an important role in causing alcohol-related harm. The evidence suggests that the majority of Irish drinkers engage in excessive or problematic drinking behaviours and that Irish drinkers underestimate their alcohol intake. Ireland was second in the WHO European Region in binge drinking with 39% of the population misusing alcohol in this manner at least monthly.
Our most recent national alcohol consumption survey was published by the Health Research Board last year.
This report found that:
- 54% of drinkers were classified as harmful drinkers.
- 75% of all alcohol consumed was done so as part of a binge drinking session
- Irish drinkers underestimate their alcohol intake by 61%.
Harmful drinking is more common among men than women, and most common among 18-24 year olds. In this category a staggering 75% of them drink in a harmful way. In addition, a considerable proportion of ‘self-defined light or moderate drinkers’ drink 6 or more standard drinks on a typical drinking occasion. This is equivalent to binge drinking. So even these ‘light drinkers’ do not realise that they consume alcohol in an unhealthy manner.
The findings of this study lead to the conclusion that, amongst the drinking population, harmful drinking is the norm in Ireland, in particular for men and women under 35 years.
I am aware that over the last number of weeks you have listened to numerous speakers who have presented the kinds of damage that alcohol misuse of this magnitude does to the drinker, families, communities and society as a whole
Public Health (Alcohol) Bill
As you know, the General Scheme for the Public Health (Alcohol) Bill was published last February and my Department is now drafting the Bill. It is my intention to have the Bill ready before the summer recess and introduced in the Houses of the Oireachtas in autumn. This legislation is the most far-reaching proposed by any Irish Government, with alcohol being addressed for the first time as a public health measure.
The bill is part of a comprehensive package of measures to reduce excessive patterns of alcohol consumption as set out in the Steering Group Report on a National Substance Misuse Strategy. It is also one of the measures being taken under the Healthy Ireland framework.
The aim is to reduce alcohol consumption in Ireland to 9.1 litres per person per annum (the OECD average) by 2020, reduce binge drinking in particular, and to reduce the harms associated with alcohol.
I believe that legislative measures contained in the bill are necessary if we are to achieve this aim and change our relationship with alcohol.
The Bill includes provisions for:
- minimum unit pricing to eliminate cheap alcohol from supermarkets
- Structural separation in shops to reduce availability and visibility
- health labelling on alcohol products
- restrictions on the advertising and marketing of alcohol
- regulation of sports sponsorship
- enforcement powers for Environmental Health Officers
Minimum Unit Pricing
Addressing the price of alcohol is an important component of any long-term approach to tackling alcohol misuse. The price of alcohol is linked to consumption levels and levels of alcohol related harms. The World Health Organisation saysthat there is “indisputable evidence that the price of alcohol matters. If the price of alcohol goes up, alcohol-related harm goes down”. Despite Ireland having relatively high excise duty rates, the price of alcohol remains very affordable, particularly in supermarkets. A woman can reach her low risk weekly drinking limit for just €6.30, while a man can reach this weekly limit for less than €10.
The Public Health (Alcohol) Bill will make it illegal to sell or advertise for sale alcohol at a price below a set minimum price. Minimum Unit Pricing sets a minimum price per gram of alcohol. The minimum price of an alcohol product shall be based on the number of grams of alcohol in the product.
I know that Dr John Holmes and Dr Colin Angus from the University of Sheffield delivered an excellent presentation on MUP and the study they carried out in Ireland. Suffice to say that the study provided robust evidence that:
• Minimum Unit Pricing policies would be effective in reducing alcohol consumption, alcohol harms (including alcohol-related deaths, hospitalisations, crimes and workplace absences) and the costs associated with those harms; and• MUP would only have a small impact on alcohol consumption for low risk drinkers. Somewhat larger impacts would be experienced by increasing risk drinkers, with the most substantial effects being experienced by high risk drinkers.
This is because MUP is aimed at those who drink in a harmful and hazardous manner. Alcohol products which are strong and cheap are those favoured by the heaviest drinkers, who are most at risk of alcohol-related illness and death and young people who have the least disposable income.
MUP is not expected to affect the price of alcohol in the on-trade in the main. But it will prevent large multiple retailers from absorbing increases in excise rates and from using alcohol as a loss leader. Officials in my Department are also looking at possible mechanisms to ensure that some of the financial benefits of MUP may flow back to the Exchequer.
Some of you have been calling for a ban on below-cost selling instead of MUP. I would like to take the opportunity to clarify why MUP is more effective than a ban on below cost selling. First of all, there is no agreed definition of below cost selling in Ireland or how it could be calculated. If it is interpreted as alcohol being sold below VAT and excise duty then very little alcohol is sold at this price in Ireland. The University of Sheffield study found that a ban on below-cost selling would have a negligible impact on alcohol consumption or related harms.
Working out a cost price that incorporates other costs such as manufacturing, transportation and retailing is a complex and expensive exercise. Banning below cost would be difficult to implement, monitor and enforce. MUP is easier to understand measure and enforce than a ban on below cost selling.
Others have been calling for a general increase in excise rates. But further increases in excise rates would render premium and higher-priced alcohol more expensive, which is unnecessary for the purpose of targeting hazardous and harmful drinkers – who purchase larger quantities of cheap alcohol. It would be just another tax.
A tax increase would not necessarily have the same effect as a compulsory minimum price, because of the risk that taxes would not be passed on in full. However, MUP prevents large multiple retailers from absorbing increases in excise rates and from using alcohol as a loss leader.
The appropriate MUP will be chosen taking into account estimates from the report of the University of Sheffield and in consultation with the relevant Departments. The price needs to be set at a level the evidence indicates will reduce the burden of harm from alcohol use.
I know that many of you are concerned about the impact that MUP might have on cross-border trade. The Minister for Health in Northern Ireland has also announced plans to introduce Minimum Unit Pricing for alcohol. My officials are in contact with their counterparts in the Department of Health, Social Services and Public Safety on the matter and we are cognisant of the requirement to work together with the North on the implementation of MUP.
Finally, on MUP, I want to give you an update on the current European court case. Last February, the Scottish Inner Court of Sessions, Scotland’s highest court, referred a number of questions on MUP to the European Court of Justice. The Court is due to hold a hearing on this case on 6th May and we expect a judgment by the end of the year. We intervened in this case and the relevant officials will be attending the hearing in Luxembourg. We are hopeful that MUP will be found to be compatible with EU treaties and rules and it is therefore important that all the necessary steps have been put in place to commence the legislation, if enacted. But it is a risk.
Regulation of Advertising and Marketing of Alcohol
Moving on now to the regulation of marketing and advertising; protecting children from exposure to alcohol marketing is an important public health goal. There is a compelling body of research which shows that exposure to alcohol marketing, whether it is on TV, in movies, in public places or alcohol branded sponsorship, predicts future youth drinking.
Numerous longitudinal studies have found that young people who are exposed to alcohol marketing are more likely to start drinking, or if already drinking, to drink more. Research also shows that self-regulation is not able to protect young people from exposure to large volumes of alcohol marketing and appealing alcohol advertising.
The Public (Health) Alcohol Bill will make it illegal to market or advertise alcohol in a manner that is appealing to children.
It provides for the making of regulations on the marketing and advertising of alcohol and includes provisions for restrictions on broadcast marketing and advertising, cinema advertising, outdoor advertising, print media and the regulation of sponsorship by alcohol companies.
This will encompass major sporting events for the first time by putting the existing Code of Practice for Sponsorships by Drinks Companies on a legal footing with enforcement powers and penalties.
The legislation will contain a commitment that the provisions on marketing and advertising will be reviewed after 3 years.
Labelling
On labelling, research shows that accurate information on the alcohol content of specific beverages is essential to promote awareness of alcohol intake. However, ‘standard drink’ or units are widely misunderstood by the general public.
In order to address this, the Public Health (Alcohol) Bill will provide that labels on alcohol products will contain the following:
- Health warnings including for pregnancy;
- The amount of pure alcohol as measured in grams;and
- The calorie count
Under the Bill, pubs and restaurants will also be obliged to provide this information to customers for alcohol products sold on draught or in measures e.g. pints, glasses of wine and measures of spirits.
Finally, health warnings will also be included on all promotional material.
Structural Separation of Alcohol Products
From a merchandising perspective, at the moment, the Minister for Justice and Equality, and I, are examining the best way to implement the separation of alcohol products from other products in mixed trading premises. Our aim is to ensure that alcohol products cannot be displayed like ordinary grocery products, but will be subject to strict merchandising requirements.
Enforcement Measures
The Public Health (Alcohol) Bill will be enforced by Environmental Health Officers.
Provisions to be enforced include:
- minimum unit pricing
- health labelling
- the control of marketing and advertising
- structural separation of alcohol from other products; and
- regulations relating to the sale, supply and consumption of alcohol products under section 16 of the Intoxicating Liquor Act 2008. These pertain to restrictions on advertising, promoting, selling or supplying alcohol at reduced prices or free of charge.
Conclusion
To conclude, I believe that the Public Health (Alcohol) bill will act as a powerful enabler towards a healthier relationship with alcohol in Ireland. I know some people believe the measures don’t go far enough, but I am confident that it is a bold and major step in the right direction. As I said earlier, I will seek Government approval to publish the Bill before the summer recess and plan to initiate it in the Houses of the Oireachtas in the autumn.
Finally, Mr. Chairman, I want to thank you and all of those who have participated in these public hearings for the valuable contribution you have made to this issue and for the assistance you have provided to me and my officials in the work that lies ahead of us. I look forward to receiving your report and reflecting it in the legislation as published.