DRINKING TAX PLAN TO FIGHT ALCOHOLISM

DRINKERS could be slugged with a levy to counter alcoholism and domestic
violence under a plan proposed by the Prime Minister's top drug advisory
group.The Australian National Council on Drugs has recommended a levy, of
between three and five per cent on all alcohol to fund treatment programmes.

Council chairman Brian Watters confirmed that the proposed levy was a key
part of a report to Prime Minister John Howard.

He said the report condemned the lack of assistance for alcoholics.

The proposed levy, which would come on top of significant GST-price rises
on alcohol last year, is based on a Northern Territory pilot programme
which targeted drinks with more than three per cent alcohol.

The four-year programme, which increased the cost of standard drinks by 5c,
was estimated to have reduced consumption by 22 per cent, prevented 2100
alcohol-related hospitals admissions, and saved 129 lives.

A 1997 High Court decision prevented the Northern Territory, or any state
government, from continuing to impose the levy, ruling that taxation
increases could only be introduced by the federal government.

Major Watters, a Salvation Army officer hand-picked by Mr Howard to head
the council, also warned that the Federal Government needed to be sceptical
about the widening push to use marijuana for medical purposes.

Major Watters said the Federal Government could allow restricted use of the
drug but only after the medicinal benefits could be scientifically proved
in Australia.

The council, which advised the Howard Government on its "Tough on Drugs"
strategy, also has warned of a need for greater education against the
dangers of marijuana.

Major Watters said the council was concerned about the low level of
government and industry assistance to alcohol education and treatment
programmes in Australia.

"The council believes it can be done and has recommended the Prime Minister
give serious consideration to the levy because there is not enough
attention being given to alcohol abuse in this country," he said.

"It could be between 3 and 5percent, that is something the Government
has to determine, and should have an emphasis on high alcohol drinks such
as cask wine.

"But we should be relating the solution, in better and more programmes, to
the problem and the industry which is profiting from it and the people
using it."

Australian Hotels Association executive director Richard Mulcahy last night
dismissed the proposed levy saying alcohol was already among the most
heavily taxed products.

Mr Mulcahy said Australian beer consumption had fallen by 4percent
since last July when prices soared on the back of an 89percent excise
increase with the GST.

"There are already massive amounts of tax collected from the industry and
ample funding from that tax take to support these new programmes," he said.

Queensland Alcohol and Drug Foundation chief Bob Aldred said he would
support an alcohol levy, provided all the money was used to prevent alcohol
abuse.

Mr Howard and staff could not be reached for comment.