Morrisons Calls For New Law On Alcohol Pricing

Thu, 10 Jun 2010

 
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Morrisons has become the second supermarket chain to back government plans to tackle the sale of cheap alcohol .

The UK’s fourth largest grocery retailer has written to the Government to declare its support for the introduction of minimum pricing on alcoholic drinks .

The move comes less than a month after Tesco welcomed the coalition government’s pledge to ban retailers in England and Wales from selling alcohol at a loss (below-cost selling), a practice which many supermarkets use to lure customers into their stores.

However, in its letter to Home Secretary Theresa May, Morrisons says the government should instead ban the sale of alcohol at a price below the prevailing rates of duty and VAT.

It adds that this approach would not require the Government to intervene in the market to define what cost is, and could also potentially increase revenue to the Exchequer.

Richard Taylor, director of corporate affairs at Morrisons, said: "As a leading British retailer we recognise the dilemma that exists over the sale of discounted alcohol for government and the industry."

"Having considered the arguments thoroughly, Morrisons believes that the best way for the government to intervene is to introduce a compulsory ban on off-licence sales of alcoholic beverages below the rate of duty and VAT."

He added: "Morrisons does not sell alcohol below duty + VAT. We believe that this mechanism, if enshrined in law, would provide an immediate and fair approach to stem the misuse of alcohol ."

"If the Government thinks that the price needs to be raised, it can do so with confidence by raising duty and ensuring the money goes to the Exchequer."

Morrisons concluded by saying it encourages all other leading retailers to support this change in legislation.