Coalition to backflip on alcopops tax

The federal opposition denies it was the threat of an early election that prompted
it to roll over on the government's $1.6 billion alcopops tax hike.
Opposition health spokesman Peter Dutton on Monday declared the coalition would
support the alcopops legislation, which the government has reintroduced to
parliament.
But Nationals whip Paul Neville, whose Queensland electorate is home to Bundaberg
Rum, declared he will defy the coalition party room and vote against the measure.
Family First's Steve Fielding sided with the opposition in March to kill the
government's initial legislation validating its 70 per cent alcopops tax hike.
The coalition has criticised the measure as a tax grab ever since the government
first raised the excise via regulation in April 2008.
The tax hike netted an extra $424 million in government revenue between April 27,
2008 and May 13 this year.
Health Minister Nicola Roxon reintroduced the legislation on Monday, noting overall
spirits consumption had fallen by eight per cent since the tax increase.
If the Senate votes down the measure for a second time it would provide the
government with a double dissolution election trigger.
With the coalition's support the measure will now pass the Senate, minus the
hard-fought concessions won by the Australian Greens and independent senator Nick
Xenophon in the tense negotiations leading up to the March vote.
The concessions included an extra $50 million in funding for alternative sponsorship
to unlock the link between alcohol and sports sponsorship and mandatory warnings on
alcoholic products.
Mr Dutton maintained on Monday the bill was always about revenue raising and it was
not a health measure.
But he said continuing to oppose the measure would drive the budget further into
deficit.
Mr Dutton denied the opposition had been spooked by the prospect of going to an
early election.
"No, we're not frightened. What we are frightened about is the future of this
country economically under a Rudd government," he told reporters.
"What this should mean today is that from here on in, the government should get
serious about binge drinking."
Mr Neville said it was no surprise he wanted to support local industry in his
southeast Queensland electorate.
"Bundaberg Rum has been part of the Australian romance ... it has been a major
sponsor of Australian sport.
"Do you think that the Champagne region of France would sit idly by if some minister
in the French government started attacking champagne?
"Of course not."
Ms Roxon told parliament the opposition had persistently sidled up to distillers.
"Today we have seen the triple pike performed, a gold medal winning performance from
the Member for Dickson (Mr Dutton)," she said.
Stephen Riden, from the Distilled Spirits Industry Council of Australia, said
coalition senators and Senator Fielding made the right decision when they voted
against the initial legislation three months ago.
"In these difficult economic times it is appalling that hundreds of thousands of
Australians who responsibly enjoy the convenience of a rum and coke or gin and tonic
in a can will continue to be slugged by a massive tax increase that has completely
failed to address binge drinking," he said.
Cancer Council of Australia CEO Ian Olver welcomed the opposition's change of heart.
"While a comprehensive approach to alcohol control is required, sales data showed
that the alcopops tax was driving down net alcohol consumption, which on a
population basis equates to reduced risk of alcohol-related cancers," Prof Olver
said.
Prof Olver said he hoped the government would now apply the same principle of taxing
harmful products and lift tobacco tax.
The maker of alcopops such as Vodka Cruiser and Woodstock Bourbon, Independent
Distillers, has warned jobs will go at its factory in Melbourne's western suburbs
should the tax hike remain.
The legislation will be voted on in the lower house on Monday night.