Fed: Beer price cut comes at cost, says MP

AAP General News (Australia)
04-04-2001
Fed: Beer price cut comes at cost, says MP

A federal government backbencher says cuts to beer excise may well sap money from other
areas such as aged care and self-funded retirees.

Queensland Liberal MP DAVID JULL, who admitted he was not a big beer drinker, says
the cost of cutting the tax would reduce the government's financial flexibility.

He says it could well sap money destined for other projects, particularly in terms
of areas like aged care and supporting self funded retirees.

Queensland Liberal MP WARREN ENTSCH says while he was sure drinkers appreciated the
cut, the beneficiaries would be large brewers.

The government last night struck a deal with the Australian Democrats that would cut
beer prices and create a special foundation to target alcoholism.

The deal came after the Democrats and Labor forced Prime Minister JOHN HOWARD to honour
a pre-GST promise to voters that draught beer prices would rise only 1.9 per cent.

AAP RTV jb/daw/jn

KEYWORD: BEER MPS (CANBERRA)

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