Pub Petition To Save NZ Craft Breweries

PRESS RELEASE
Pub Petition To Save NZ Craft Breweries Attracts Global Support

A Nelson pub that specialises in serving craft beer has launched a nationwide online petition to urge the government to give tax breaks to brewers of craft beer. The petition is a response to recommendations by the Law Commission that include across the board price rise for all alcoholic products, as one answer to the social cost of binge drinking.

The petition was launched this week by Nelson's The Free House pub and is already attracting signatures from all over New Zealand as well as craft beer fans from as far afield as Australia, the US and Sweden. The Free House has only been open for 6 weeks and is New Zealand's first real free house - a pub untied to any brewery and dedicated to serving craft beers in a socially-responsible environment.

The Free House is worried that proposed tax rises for beer will disproportionately penalise craft brewers - taking a hit because of the binge drinkers who would never go near premium beer.

"The Law Commission's solution to New Zealand's binge-drinking problem seems to be raising the price of alcohol for everyone," says Free House co-owner Mic Dover. "The Free House rejects this simplistic approach. Our online petition argues that a 'one size fits all' increase in taxation will have a disastrous effect on New Zealand's boutique breweries - and that these brewers are the ones we should be rewarding - not penalising."

"Small boutique and craft breweries emphasise flavour, freshness, localness and create environments that encourage sensible and responsible drinking," says Free House co-owner Eelco A Boswijk. "The big brewers can absorb increases in excise duty and afford massive advertising campaigns but the small brewers can barely afford to print a few posters and give out a few flyers. Craft brewers are occupying less than 3% of the total beer market - so tax breaks for them is not going to leave a big hole in government finances."

"The availability of RTDs and heavily-discounted alcohol in dairies and supermarkets is what fuels binge drinking by young people," says Dover. "Craft brewers make premium beer which is at the expensive end of the market - their ingredients cost more and making beer properly takes longer and is more labour-intensive. A small price increase has a disproportionate effect on small brewers."

The Kiwi craft brewing industry is gaining international recognition for the quality of its beers and The Free House opened its doors 6 weeks ago as one of New Zealand's first 'free houses' - pubs untied to any specific brewery.

Recent moves in the UK, the US and Australia are recognising that fledgling craft brewing sectors need government support. For example, the U.S. House of Representatives introduced the Brewers Excise and Economic Relief (BEER) Act, which provides specific relief to small brewers by reducing their tax burden from $7.00 to $3.50 per barrel.

"Many small breweries are family-run operations situated in small communities like Nelson," says Boswijk. "Craft brewers employ more staff per hectolitre of beer brewed than big brewers, and the profits go back into local communities not offshore. If boutique breweries go to the wall, local jobs are lost and responsible drinkers will be priced out of the market - it's a thin line between 'premium' and 'unaffordable'."

SOBA (The Society of Beer Advocates) committee member Ian Caig signed the petition as soon as he heard about it, adding the comment that, "the government should introduce a sliding scale tax system on the basis of annual beer production - we need to level the playing field for the little guy."

The Free House is promising to lobby MPs and other supporters of great New Zealand craft beers to give tax breaks to small Kiwi-owned brewers. The petition is at http://www.gopetition.com/petitions/craft-beer-brewers.html or click on the link at www.thefreehouse.co.nz

Background Info For Editors:

The Law Commission 's report can be viewed at www.lawcom.govt.nz

Sweeping changes to the way alcohol is bought and consumed in New Zealand could be enshrined into legislation if recommendations by the Law Commission to the government are accepted. Commission president Sir Geoffrey Palmer outlined some of the preferred policy options it would be releasing for the public to make submissions on, in a speech in Nelson recently. One of the issues tagged 'for later discussion' was the substantial gap between the taxes the country received from alcohol purchases, $795 million, and the estimated social cost of harmful misuse of alcohol of $5.296 billion.

"It does seem to me that the taxpayer should not be asked to shoulder as much of the burden as is currently being met from public funds," Sir Geoffrey said. "It does seem that the case for increasing the price of alcohol to ensure drinkers contribute more to the costs imposed on society is persuasive." He suggested increasing the excise tax would be appropriate.

The Free House petition says:

"Sign our petition if you want New Zealand's craft brewers to survive!

We, the undersigned, call on the New Zealand government not to endanger the survival of the country's fledgling craft beer industry with a 'one size fits all' tax hike. On the contrary we urge the government to follow the UK, the US and Australia in considering tax breaks for small, independent craft breweries."

ENDS

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