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Budget Statement 2010 (P.179/2009): second amendment (P.179/2009 Amd.(2)) – comments.

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STATES OF JERSEY

BUDGET STATEMENT 2010 (P.179/2009): SECOND AMENDMENT

(P.179/2009 Amd.(2)) – COMMENTS

Presented to the States on 7th December 2009 by the Minister for Health and Social Services

STATES GREFFE

2009   Price code: A  P.179 Amd.(2)Com.(2)

COMMENTS

The Public Health Department position on the proposed increase in duty on Alcohol and Tobacco

Alcohol

Within the European Union, alcohol has been identified as the third highest risk to health, ahead of obesity, and behind only tobacco and high blood pressure. The more a country drinks, the greater the harm caused by alcohol. The European Comparative Alcohol Study found that as a country's alcohol consumption goes up, then harm done by alcohol to individuals and society goes up and down in proportion.

Jersey consumption per capita is one of the highest in Europe. The harm resulting from alcohol can be measured according to the effect on the individual, e.g. there are an estimated 42 premature deaths each year attributed to alcohol1. It can also be measured in the harm caused to the wider local community, e.g. in 2007, 73% of all evening street violence arrests between the hours of 20.00–04.00 involved alcohol2. The figure below does, however, indicate a downward trend for Jersey which offers some comfort.

Comparison of Jersey consumption (litres of pure alcohol) per capita with other countries in Europe

JERSEY UK France Germany Ireland Canada Sweden Target

20 18 16 14 12 10 8 6 4 2

0

2000 2001 2002 2003 2004 2005 2006 2007 2008

Increasing impôt duty on alcohol is one of a number of preventative measures that need to be combined to reduce the harm caused by alcohol. Alcohol prices have increased over the years due to taxation. In recent years, however, alcohol has become more relatively affordable in Jersey (see figure below). This doesn't fit well with aspirations to reduce alcohol consumption.

1 Public Health Intelligence Unit (2009)

2 States of Jersey Police (2008) Annual Crime Figures

Alcoholic drinks Average Earnings

160 150 140 130 120 110 100 90

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

In 2003 the States of Jersey endorsed the Alcohol Strategy with its explicit aims to reduce alcohol consumption, particularly in young people, and ensure alcohol duty is above the rate of inflation each year. The current proposed increase in impôt duty will realign local fiscal policy with previously agreed States Strategy on Alcohol.

The World Health Organisation recommends that fiscal approaches should be used in tandem  with  health  educational  campaigns  to  reduce  alcohol  consumption. Implementing new fiscal measures in addition to duty are encouraged by the World Health Organisation. New measures include minimum pricing. Recent steps by the Scott ish government to introduce minimum price' is an example of a government responding to these recommendations.

Pursuing a minimum price for alcohol would require legislation, which would set a minimum  price  on  commercially  supplied  alcoholic  drinks  based  solely  on  their alcohol content, irrespective of where they are sold. Sheffield University has produced an independent review of the effects of alcohol pricing and promotion. The review found  that  such  pricing  policies  can  be  effective  in  reducing  heath,  crime  and employment-related harm.

The current Licensing Law (1974) needs reviewing and has been the subject of a recent Green Paper public consultation. The Green Paper included public health as a key  consideration  when  awarding  or  reviewing  alcohol  licences.  Jersey  has  over double the amount of licensed premises than the south-west of England. In addition, the Green Paper suggested a more level playing field in the way the Licensing Law treated  on-'  and  off-'  licence  premises.  A  summary  of  responses  from  this consultation is expected soon.

Tobacco

Smoking kills around 150 people in Jersey each year, accounting for one-fifth of all deaths in the Island[3]. This makes smoking the biggest preventable cause of premature death and chronic ill-health in Jersey. The Jersey Annual Social Survey (2008) found that 15,300 adults still describe themselves as smokers[4].

The Jersey Tobacco Strategy was agreed by the States in 2003 to employ fiscal and legislative measures in order to address the demand for, and the supply of, tobacco products.  Those  fiscal  measures  explicitly  included  increasing  impôts  duties  on tobacco products over and above the level of inflation each year.

To  date,  the  Tobacco  Strategy  has  been  remarkably  successful;  seeing  smoking prevalence  decrease  from  29%  to  21%  for  adults,  and  from  35%  to  21%  for 14–15 year-olds  during  the  last  5 years5.  Our  target  is  to  reach  14%,  as  already achieved in California and some other parts of the world.

Public Health Recommendation

  • The price of alcohol is increased and a pricing policy with a minimum price for a unit of alcohol is considered.
  • The Licensing (Jersey) Law 1974 needs to be reviewed and implemented.
  • The price of tobacco is increased in line with the commitment given within the Tobacco Strategy (2003).

30th November 2009

5 Medical Officer of Health Report (2007)