Gov't set to target below-cost booze

Related tags John grogan mp Alcoholic beverage Beer Alcoholism

Health minister Ben Brad-shaw says the Government is "prepared to change the law" regarding below-cost selling of alcohol. It is the clearest sign...

Health minister Ben Brad-shaw says the Government is "prepared to change the law" regarding below-cost selling of alcohol.

It is the clearest sign yet that the Government will act against the deep discounting in supermarkets that has been blamed for fuelling binge drinking.

Speaking at a debate in Westminster, Bradshaw pointed to the upcoming review of the relationship between alcohol pricing and harm.

"We have concerns about the pricing of shops and supermarkets and deep discounting, often as loss leaders selling below cost. Depending on the review findings, expected next summer, we are prepared to change the law."

However, it remains to be seen how Government could act without breaching competition law. A group of academics are to be appointed by Government to research the issue.

Association of Licensed Multiple Retailers chief executive Nick Bish said one problem would be defining "below-cost" - it could be the wholesale price or the price negotiated by the supermarket. Bish urged Government to focus on advertising and marketing rather than just price.

Tory MP David Amess said: "There's no way this Government is going to take on the big supermarkets. It's an absolute joke. This Govern-ment goes hand-in-glove with supermarkets on every issue."

The supermarkets took a battering in the debate, on the health consequences of the availability of cheap alcohol.

All-Party Parliamentary Beer Group chairman John Grogan MP caused a storm when he labelled Tesco boss Terry Leahy "the godfather of binge drinking".

The debate was called by Barnsley MP Eric Illsley, the honorary adviser to the Federation of Licensed Vic-tuallers Associations, who said: "There's too much drinking in the home in an uncontrolled environment. People are moving away from pubs and clubs because the price has remained expensive compared with supermarkets."

Kelvin Hopkins MP said: "We need a minimum price level set for alcoholic drinks and we want the level in supermarkets to be raised to something like the level in pubs."

l Nick Bish: off-trade in denial - p3

Supermarkets snub grogan

Supermarkets have rejected calls from All-Party Parliamentary Beer Group chairman John Grogan MP for a code of practice against irresponsible drinks deals.

Speaking in the debate, Grogan called for supermarkets to abandon below cost-price selling and create a code of practice for alcohol mirroring those in the on-trade.

"They must stop putting their heads in the sand," Grogan said. "We must have some leadership from these very powerful individuals."

However, supermarkets contacted by the MA said they had no plans to create a code that would impact on prices.

Related topics Legislation

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