7 Mar 2011

Alcohol not sold below cost, MPs told

9:43 pm on 7 March 2011

Independent supermarket operators have told a parliamentary committee that they are not selling alcohol at below cost price.

Parliament's Justice and Electoral Committee was hearing submissions on Monday on the Alcohol Reform Bill, which would tighten up the rules on licences, trading hours and alcohol marketing.

It would also make it illegal for anyone under 20 to buy alcohol from an off-licence outlet such as a bottle store or supermarket.

Answering questions from MPs on alcohol pricing, the National Association of Retail Grocers and Supermarkets says it has policies in place voluntarily agreed to by members not to go under cost price when it comes to liquor.

Association president Michael Kennedy says supermarkets can offer lower alcohol prices than wholesalers because of the higher volumes purchased.