By Ian Neubauer

The Federal Government has sunk efforts to see funds already collected by the RTD tax hike directed toward health and alcohol education in what the industry believes is an effort to shame it.

Earlier this week, the Federal Government rejected an amendment put forward by the Opposition to validate the $290 million in taxes already collected and prevent it being refunded to distillers.

Deputy Prime Minister Julia Gillard told the ABC the Government was legally obliged to return the $290 million to distillers.

“The legal position is clear. Our obligation is to return the tax dollars to the distillers,” she said.

Distilled Spirits Industry Council of Australia (DSICA) spokesperson, Steven Riden, said the Government’s attitude in the matter was absurd.

“It is absurd for the Government to turn down $290 million,” he said. “DSICA does not want to see that money refunded to the industry. The Government seems to be the only one that wants the refund to occur.”

Riden said all but one DSICA member had agreed to funnel the money toward alcohol harm-reduction initiatives. “We are talking to public health agencies on how best that could occur. Alternatively, Drinkwise could be the recipient,” he said.

Shadow Health Minister Peter Dutton mirrored Riden’s comments, describing the Government’s insistence on refunding the monies as outrageous.

“Coalition and crossbench senators have given the government every opportunity over the last two days to divert the money collected over the last year by the tax grab to real measures to curb teenage binge drinking,” Dutton said. “But for its own political purposes it had rejected any compromise.”

Shadow Parliamentary Secretary Mathias Cormann was less diplomatic, accusing Federal Health Minister Nicola Roxon of being churlish for insisting on the refund.

“This is a serious situation,” he said. “Nicola Roxon should stop acting like a spoiled brat.

“There is not one single party in the Senate, other than the Labor Party it seems, which supports the revenue being collected over the past year to be validated,” he said.

Cormann added that the Coalition’s offer to validate the tax was still on the table and urged the Rudd Government to introduce legislation to support the move before the current session of Parliament wraps up tomorrow (Mar 19).

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The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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