ALSA exposes repeated error on estimate costs of alcohol misuse

The Australian Institute of Criminology's (AIC) release of a study into the societal costs of alcohol misuse in Australia appears to have relied upon the flawed Collins and Lapsley economic modelling.

In response to the release of the study, Mr Terry Mott, Chief Executive Officer of the Australian Liquor Stores Association (ALSA) said today "the economic cost modelling used in the Collins and Lapsley study were not meaningful, had been shown to be flawed and were not based upon standard economic models.

A recent Crampton, Burgess and Taylor1 critique of the Collins and Lapsley methodology found that the estimate of $15 billion per annum was grossly over-stated and estimated the real cost to be no more than around $3.8 billion per annum.

Therefore any calls to increase alcohol tax based on these estimates are misguided. As pointed out in the AIC report in excess of $7 billion of consumers' money is already collected every year in alcohol taxation, which is around double any realistic estimate as quoted by Crampton & Burgess at around $3.8 billion.

ALSA is of the view that governments need to create meaningful debate and policy in harm minimisation and for interventions to be targeted at high risk groups – not simply yet another "one-size fits all" additional tax penalty for all consumers.

"The goal should be to change the behaviours of individuals who drink to get drunk, which is why ALSA also support DrinkWise – a not-for-profit, independent research and social change agency funded by the Australian alcohol industry, that is dedicated to building a safer drinking culture in Australia", Mr Mott said.

Source: Australian Liquor Stores Association (ALSA), 3 April 2013