The Western Cape government is urgently considering the introduction of “per-unit-of-alcohol” pricing to curb binge drinking, premier Alan Winde announced on Thursday.
Minimum unit pricing, which stipulates a floor price for a unit of alcohol, would push up the price of the cheapest products on the market, and has been introduced in several countries, including Scotland and Canada.
It is one of a host of changes to the Western Cape Liquor Act being considered by the provincial government, with the aim to reduce the harm caused by alcohol while incentivising law-abiding businesses, said Winde.
The provincial government is also considering tighter controls on the hours during which alcohol may be sold, which would remain in place after the restrictions imposed under the national state of disaster come to an end.
“We want to look at pricing, and how we change it. And we need to look at hours of trade as a tool or mechanism to slow down, close down or reduce the amount of alcohol flowing in communities where the damage is being done,” Winde said in an address to the provincial legislature.
“We would like this to be fast-tracked as an urgent priority,” he said.
A study commissioned by the Western Cape provincial government from researchers at UCT found the introduction of a minimum unit price for alcohol would have a bigger effect on binge drinkers than raising taxes, because they tended to drink large amounts of cheap alcohol. Setting the minimum price at R6 per unit of alcohol (in 2019 prices) would cut alcohol consumption by 6.2% among binge drinkers, by 15.5% among other heavy drinkers, and by 4.6% among moderate drinkers, according to the study, which was conducted by UCT economists Corné van Walbeek and Grieve Chelwa.
The Medical Research Council’s Charles Parry said heavy drinking was particularly prevalent in poorer communities, and the introduction of a minimum unit price was worth consideration, as it would push up the price of the cheapest products.
“It is a strategy we should look at as it puts a minimum floor price on alcohol. Higher pricing cuts down heavy drinking because people can’t afford to drink too much,” he said.
Proposed amendments to the Western Cape Liquor Act are currently being reviewed by the provincial legal services department, and will need to be approved by the provincial cabinet before being released for public comment as a draft bill, said Cayla Murray, spokesperson for Western Cape community safety MEC Albert Fritz.
Minimum unit pricing was introduced in Scotland in 2018, with the minimum price set at 50 pence per unit. Research by Public Health Scotland published earlier in 2020 found the volume of pure alcohol sold per person fell during the first year of minimum pricing, with the biggest drop seen in sales of cider. Sales volumes rose in England and Wales during the same period.
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