The government is not ruling out the possibility of imposing minimum prices for alcoholic drinks, amid EU pressure to introduce controls across the board.
This would lead to further growth of the black economy
Minimum prices are being considered within the context of a National Alcohol Policy which is currently being drawn up, a government spokesman said.
However, the spokesman emphasised that the new policy is being drafted “in consultation with all stakeholders”.
The Sunday Times has been told there is a potential chasm in the offing, with NGOs campaigning for a curb on alcohol consumption clashing with the business community.
Malta is known for providing relatively inexpensive alcoholic drinks, fuelling excess consumption, especially among young English-language students.
The British government recently unveiled plans to introduce minimum alcohol pricing in England and Wales to reduce excess consumption and binge drinking.
Meanwhile, pressure is mounting on the EU, particularly through the European Public Health Alliance – representing NGOs from across the 27 member states – to make such policies obligatory.
While supporting the introduction of minimum price controls, the Malta Health Network said it believed alcohol pricing control should be coupled with an education campaign and training for professionals.
The national agency against drug and alcohol abuse, Sedqa, said minimum pricing was one of the main deterrents to put young people off alcohol.
“Moreover, Sedqa also believes that controlling the availability of alcohol, together with law enforcement, is an important part of the solution in reducing excessive alcohol consumption.”
But the Chamber of Commerce, Enterprise and Industry warned that increasing prices artificially runs the risk of further fuelling the black market, as well as raising safety fears.
“Malta already faces the problem of illegal importation from other countries, where there is a substantial difference in excise tax.
“The Chamber emphasises the need for more restrictions to fight illegal trading on the island. It is this trading that encourages the cheap importation of alcohol,” a spokesman said, warning that a minimum price on alcohol would also have negative repercussions on tourism.
The Chamber for Small and Medium Enterprises – GRTU said goods and services were provided at the most cost-effective and efficient prices but the choices were open to the consumer.
“We do not believe it is the responsibility of the business community to nanny the rest of the community,” a spokesman said.
There is enough evidence to prove that price is not an effective deterrent
“There is enough evidence to prove that price is not an effective deterrent against misbehaviour or abuse. It’s education, promotion of better life standards and above all, surveillance and enforcement that ensure communities are better managed.”
Regulations, including direct market intervention, like minimum pricing and other similar action only led to new forms of abuse, corruption and increased illicit trading and further growth of the black economy, together with additional expense for the public, the GRTU said.
A study of the period between 1996 and 2004 found that the affordability of alcohol – a composite measure of the relative price of alcohol and of income – increased in 19 of the then 20 EU member states.
It is estimated that 55 million people in the EU drink harmful levels of alcohol, and, of these, 23 million are considered to be addicted.
A recent report by RAND Europe – a non-profit research institute – on the affordability of alcohol suggests that in 18 member states, including Malta, affordability of alcohol has increased over the past 12 years.