Achi news desk-
Canadians continue to pay a high cost as a society when it comes to alcohol consumption.
A recent study by the Canadian Center on Substance Use and Addiction (CCSA) shows that the government’s net revenue from alcohol sales in 2020 was $13 billion, while the net social costs of alcohol use were $19 billion leaving Canada with an alcohol deficit of $6 billion.
The costs include health care, people who lose work, and criminal justice costs.
“Some of the costs include deaths, hospitalization, addiction, treatment, long-term disability, short-term disability, absenteeism, and attendance when people are at work but their ability is reduced,” said senior Adam Sherk scientist and special policy advisor with the CCSA.
“But there are many second-hand effects – the harm to others that is difficult to cost. Drinking in the home has a huge impact on domestic partner violence with children and young people, but that’s not part of this cost to study,” Sherk said.
Sherk collected data between 2007 and 2020 which shows that the lack of alcohol has more than doubled in that time.
Sherk said there is decades of research from many different countries that shows that the most effective way to change consumer buying patterns related to alcohol is to move around the price.
On April 1, the federal government officially raised its alcohol excise tax to 2 percent.
Originally, the tax was set to rise to 4.7 per cent, in line with inflation. But the government decided to cap it at 2 percent, a cut welcomed by those in the alcohol business. According to Sherk, taking inflation into account, the 2 percent increase was an actual 2.7% reduction in tax. He calls that a corporate subsidy for bars and restaurants.
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“Not adjusting the federal excise tax on alcohol along with inflation is a bad idea for health and well-being because alcohol becomes cheaper over time. It benefits alcohol producers, including smaller players, but especially the larger corporations that produce large quantities of alcohol. Most of the subsidy will be vacuumed up by the biggest corporations,” Sherk said.
Calgarian Earl Thiessen quit drinking in 2007.
“It almost cost me my life. It cost many of my friends their lives,” said Thiessen who is now the executive director of the Oxford House Foundation.
Oxford House provides support for people recovering from drug and alcohol addiction through affordable housing and support. In his role, he continues to see the price we all pay when it comes to alcohol.
“The stress on the system economically, divorce, treatment centers, psychologists, hospitals. I must have been in the hospital about 50 times,” Thiessen said.
“Alcohol still has the biggest impact on society. We call it ‘slow suicide’ because it takes longer to have that effect on your liver and your stomach and your throat and your heart,” said Thiessen.
Sherk said the federal alcohol excise tax has been declining for many years, starting in the 1990s. He says it has fallen continuously overtime in real terms.
“It was behind inflation and the price level of all other goods and services. So this makes alcohol cheaper relative to other goods and services and that tends to push up sales of whatever we’re talking about,” said Sherk “Because of the serious health effects of alcohol, it would more reasonable to keep the price of alcohol. alcohol, at least kind of fixed to the price level and not allow it to drop overtime,” Sherk said.
The Alberta government currently has no plans to increase the alcohol tax.
“Within the Ministry of Mental Health and Addiction, our focus is to build the Alberta Recovery Model and create a system of care that gives every person the opportunity to pursue recovery. Changes to alcohol taxes are normally only considered when drafting the budget, and no proposals are currently being considered.” said Hunter Baril, spokesman for the office of the Minister of Mental Health and Addiction.
A spokesperson for Health Canada said the department recognizes that alcohol use is a serious public health and safety issue that affects individuals and communities across Canada, and accounts for significant health and social costs.
“Our actions to address alcohol-related harm are guided by Canada’s renewed Drug and Substance Strategy (CDSS) which uses a public health and public safety approach to reduce the substance use-related harm in Canada. This includes supporting research, conducting public awareness activities, developing guidelines, and monitoring trends in alcohol consumption and harm,” read a statement from Health Canada.
& copy 2024 Global News, a division of Corus Entertainment Inc.
