Wine industry jittery over leaked proposals

Leaked documents that hint the Government is about to increase alcohol excise tax by 50 percent, giving wine industry the jitters

Members of the wine industry doubt any government would enforce a recommendation for a drastic alcohol tax increase.

Leaked documents hint the Law Commission report due next week, will raise taxes by a massive 50 percent.

New Zealand Wine Growers chief executive Philip Gregan, says if there is truth to the leaks, the Law commission has not been very creative or original in its thinking.

"But we don't think for one moment that any government is going to increase the excise on wine by 50 percent. The outcome would be wineries going out of business all over the country. That's not good for the economy, it's not good for anything and frankly, it would be an absolute disaster. Our industry already pays $200 million to the Government each year and wineries are already struggling."

Worried small time brewers are also voicing their concerns.

Epic Brewing Company general manager Luke Nicholas says he can understand the Government's concerns about alcohol abuse, but there should be a targeted approach to the issue, not a blanket one.

"I think that punishing small craft breweries that are probably making beer that responsible people drink, is probably not the best or smartest way of dealing with the problem."