News | Tuesday, 12 November 2008

Sense Group calls for collaboration with industry

The Sense Group (TSG) noted Government’s decision to revise the duty on spirits and the raising of the drinking age to seventeen years. Whilst the Association, which is supported by the major importers and producers of alcoholic beverages in Malta, understands the inclusion of the adjustment of excise as a fiscal measure, it feels that the raising of the drinking age to seventeen years appears to have been an afterthought, and introduced arbitrarily during national budget speech. The Sense Group reminded that the drinking age was discussed at length at the social affairs parliamentary committee and the related legislation was passed through parliament just two years ago.
Mr Joseph Farrugia, Chief Executive of the Sense Group said that the industry was never opposed to raising the drinking age as long as this was enforced. He said that so far, there is little evidence to show that the sixteen-year limit is actually being enforced and respected. He said that government’s decision to make a campaign about the dangers of alcohol abuse is positive and very much in line with what the industry, through TSG, has been doing for more than ten years. He added that any national campaigns will be more effective and credible if all stakeholders, including industry are involved and consulted. There have been instances where this has happened before and industry will be more than enthusiastic to live up to its corporate social responsibility credentials and offer its support and participation to reduce alcohol related harm.
TSG stated that the previous imbalance between the local duty and the ones charged in other European countries was leading too many Maltese to purchase alcoholic beverages from other countries. This had various negative consequences. Firstly, importers were losing on sales to foreign operators and this was having a negative effect on legitimate businesses in Malta. Secondly, Government was losing revenue from the purchase of spirits as the duty on the amount purchased abroad was going to other governments. TSG argued that, even from a social policy perspective, the fact that an unknown quantity of spirits was being purchased abroad was distorting the true pattern and extent of consumption of spirits in Malta, which meant that social policy decisions might have been based on false premises.

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Sense Group calls for collaboration with industry