8 June 2000

Low Alcohol Beer Subsidies - NSW Isolated

I welcome the announcement by the Tasmanian Treasurer, Dr David Crean, that Tasmania will maintain its subsidies for low alcohol beer.

NSW is now isolated in its attempt to gain a financial windfall at the expense of public health by pocketing the revenue it receives to fund low alcohol beer subsidies.

Tasmania recognises the public health benefits of continuing with State subsidies so as to maintain a price advantage for low alcohol beer.

Victoria, Western Australia and South Australia have budgeted to maintain their subsidies for low alcohol beer and obviously recognise the importance of public health initiatives in their States.

The Victorian Premier has publicly stated that he will act in "good faith" on the low alcohol beer subsidy. Given that all the States will receive the funds to continue with their subsidies in their entirety, and the importance to public health of maintaining the price advantage for low alcohol beer, this can only mean that Victoria will maintain the subsidy.

NSW is now the only State acting in bad faith by attempting to withdraw the subsidy and pocket the money at the expense of public health. NSW should now fall into line with all the other States and maintain its subsidies.