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Who will control alcohol production?
November 15, 2006 17:27


Alcohol manufacturers being afraid of the government to introduce public monopoly suggested creation of a single unified agency – the Alcohol Safety Council of Russia. Although entrepreneurs may be late: the State Duma is working out the bill regulating not only monopoly in the industrial sector but in retail field, either.

The problem of alcohol market (of both foreign and home production) has been discussed for a long time. Actually, there doesn’t exist a unified agency able to turn the market into a centrally controlled one. The market is observed by several ministries and departments: the Ministry of Finance, Russian Federal Consumer Rights Protection and Human Health Control Service, the Ministry of Economic Development and Trade, the Agriculture Department and others. Moreover, the participants of the market think one of the reasons of the lasting alcohol crisis is connected with lack of departments’ co-ordination: the government still can’t understand whose fault it is that the new count alcohol computer system doesn’t work, though so many departments were in charge of its introduction.

Nevertheless, there’s another version of the crisis upraised: the authorities made their mind to take advantage of the campaign against bootleg alcohol to bring the market under control, though the way has not been determined yet.

It is not improbable, that manufacturers of alcohol production willing to take part in strengthening of the state role at the market suggested creation of a new department under the working title of “Rosalkogol” (Russian alcohol) concentrating all market regulating authorities. The development of such a department is expected to collect 100% taxes and to reduce mortality rate caused by intoxication. According to St. Petersburg manufactures, decisions made by this department are a must for all ministries regulating the market. The council should organize an advisory board including representatives of the largest market operators. Theoretically this federal agency is to work under either the chairman of the government or the head of the Federal Commission of Taxation since taxes make up the considerable interest in the final price of alcohol.

First of all, the Alcohol Safety Council should decrease excise from 159 rubles per spirits liter to 95-100 rubles and introduce the minimal price of a bottle of alcohol at the retail market. Today one can buy a bottle of vodka for 36 rubles, which is incredible, as no factory is able to produce a bottle of vodka less than for 52 rubles. In a shop it should cost at least 70 rubles (including taxes), other products will be concerned as illegal.

However, manufacturers worry about alcohol production, which relates to food industry, but the vast majority of intoxication cases is caused by alcoholic products not appropriate for drinking. That is why the idea of the public monopoly is expected to be of no avail as long as it doesn’t affect this segment of the market or that one, where cosmetics and perfume products are sold. It’s not an easy task to introduce the public monopoly on trade, turnover and production of all types of alcoholic goods including those, which are based on commercial alcohol.

The solution of the problem implies that all its aspects should be taken into account and perhaps then we will find the way out. Frankly speaking, it’s not alcohol to blame, but the lack of drinking culture along with despair to improve one’s life.

Sources:

    www.gazeta.ru
    www.5-tv.ru

Olga Pletneva

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