Kevin Andrews denies decision to increase alcohol prices at military bases will encourage ADF members to drink off site
The Defence Minister denies a decision to increase alcohol prices on military bases will encourage ADF members to drink off site.
Military chiefs have approved hefty price hikes to help reduce alcohol-related harm and partially offset the labour costs at Defence bars.
A standard 375ml full-strength beer will soon cost $4.90, while pre-mixed spirits will be $8 for a 375ml can, according to an internal Defence document obtained by the ABC.
The Change in Alcohol Pricing and Profit Disbursement at Defence Bars outlined three reasons for the price hikes: to reduce alcohol-related harm in the ADF, to ensure consistency in alcohol prices in all Defence bars across Australia, and to partially offset the labour costs at Defence bars.
The Defence Department runs the vast majority of the bars using contracted labour, while the Navy directly operates six.
Defence Minister Kevin Andrews said he supported the price hike.
"This is a matter which goes to the operational issues so far as the ADF are concerned," Mr Andrews said.
"As I understand various items have been subsidised to different extent on bases.
"There are obviously health issue concerns that are there and I think the decisions that have been made in relation to that are an appropriate balance."
Mr Andrews has rejected suggestions the increased prices will encourage Defence personnel to go off base to drink.
"That's a matter for the Chief of Defence and the service chiefs and the commanders of various bases and I have the utmost confidence in their ability," Mr Andrews added.
Previously, military personnel could buy cheap drinks at the bars — where "Mess Committees" set prices generally close to cost price, and receive all profits.
But from September 1, profits from the sale of all bar stock (alcoholic and non-alcoholic) will be divided three ways:
- 1.15 per cent of profit will go to mess committees to maintain operations and activities.
- 2.60 per cent of profit will partially offset labour costs at Defence Support and Reform Group-operated bars.
- 3.25 per cent of profit will be used to support recommendations from the Review of the Use of Alcohol in the Australian Defence Force.
Defence said it would review the profit disbursement to confirm profits were being appropriately spent halfway through next year.
Alcohol prices to be charged from 1 September
Product type | Price |
---|---|
Draught beer, low alcohol (375ml) | $3.80 |
Premium draught beer, low alcohol (375ml) | $3.80 |
Draught beer, full strength (375ml) | $4.90 |
Premium draught beer, full strength (375ml) | $5.35 |
Standard spirit (30ml) | $5.50 |
Premium cider (500ml) | $7.80 |
Pre mixed spirits (375ml can) | $8.00 |
White/Red wine (150ml) | $5.50 |
Fortified wines, Port/Sherry, etc (60ml) | $2.00 |
Bottled Wine — Set by mess committee | TBA |