Alcohol tax rises will stay on wish-list - Sir Geoffrey

Sir Geoffrey Palmer says his plan will guide policy for a decade. Photo / Steven McNicholl

Steep tax increases on alcohol will remain part of the Law Commission's long-term plan despite the Government ruling them out this year, says commission president Sir Geoffrey Palmer.

He said yesterday that his report last week calling for a 50 per cent increase in the alcohol excise, and making 152 other recommendations, was a blueprint to guide policy for at least a decade.

He was not upset by Prime Minister John Key's immediate response that there was "literally no appetite to increase excise taxes".

"I don't feel depressed, because we didn't write this for this year or next," Sir Geoffrey said.

Asked how the rest of his report would stack up without a tax increase, he replied: "There's a Budget every year."

Drug Foundation chief executive Ross Bell said that in hindsight it was clear that the Government ruled out raising alcohol taxes this year because it knew that it was about to announce a 30 per cent rise in tobacco taxes.

Sir Geoffrey was also unfazed by comments by Sports Minister Murray McCully that any tightening of the liquor laws would not happen before next year's Rugby World Cup.

"You couldn't do it before the World Cup even if you wanted to," Sir Geoffrey said.

He said the Government first had to decide on its response to each of his 153 recommendations. A bill would then have to be written, a select committee would have to hear submissions, and even after the law was passed "complicated regulations" would be needed on details.

He told 350 people at the Alcohol Advisory Council's annual conference in Manukau that they should not despair at the power of "Big Alcohol" to squash the proposed reforms as they went through that political process.

"In our democracy, everyone ... is entitled to make representations to their MPs," he said. "I don't think it's helpful to demonise the licensed trade. They are conducting a business within the existing law. We spend $85 million a week on alcohol. It provides employment for a terrific number of people. You have to take them along with you."

Hospitality Association chief executive Bruce Robertson said bars and restaurants supported a legal minimum price for alcohol - an idea Sir Geoffrey has recommended for further study. His association also wanted alcohol banned from supermarkets and convenience stores.

Sir Geoffrey acknowledged that allowing wine and beer sales in supermarkets since the 1990s had helped to "normalise" alcohol in the public mind, even though he believed it should not be treated as "just another commodity".

But many people found it convenient to buy liquor at the same time as food and the commission accepted they should be able to do so.