Abbott Government increases beer tax as alcohol drinkers call for new deal

The Abbott Government has quietly increased the tax on a slab of full-strength beer by 29c and added 11c to a case of light-strength beer.

The changes made under the half-yearly automatic increase in so-called “sin taxes” also sees the tax on a six-pack of beer rise by up to 8c.

The taxman will take an extra cent for every beer served across the bar in a pub or club.

Spirit drinkers are the hardest hit with the tax on a slab of ready-to-drink spirits leaping by 66c and the excise on a 700ml bottle of spirits jumping by 38c.

The automatic excise system was introduced by Bob Hawke’s government 30 years ago to avoid the Government having to announce the bad news in the Budget.

The Tax Office said the Federal Government now takes $15.63 in excise on every case of 24 cans of full-strength beer.

Carlton & United Breweries said this was one of the highest tax rates on beer in the world and called for a freeze on beer tax to provide relief.

“Australians pay amongst the highest tax for their beer in the world,” said CUB corporate affairs director Jeremy Griffith.

“Brewing is a great local industry, we want it to continue to grow and prosper. We ask the Government to give consumers a break and freeze the CPI adjustments.”

The Bureau of Statistics says beer consumption has hit a 66-year low while wine drinking has increased.

Spirits makers are also angry, saying they have 18.7 per cent of alcohol sales but are hit with 45.6 per cent of the taxes collected.

The Federal Government takes more than $20 in tax on every bottle of spirits and $35 for a case of 24 cans of ready-to-drink spirits.

The Distilled Spirits Industry Council said there was an urgent need for alcohol tax reform. It said Treasury figures showed government revenue from alcohol excise was down by $580 million between 2007 and 2013 because consumers’ drinking habits had shifted toward lower taxed wine.

The council’s manager of information and research Stephen Riden said spirit drinkers were “paying a lot more tax for their drinks”.

“Taxing all alcohol on the same basis – the amount of alcohol it contains – is common sense tax reform that would boost government revenue,” he said.

Beer and spirit excise is based on the Consumer Price Index and adjusted in February and August every year.

Under changes made by the former Rudd government, the tax on cigarettes and tobacco will increase in March and September every year in line with average wages, which is usually a higher measure.

Petrol tax was frozen by the Howard government in 2001.

Luke Sullivan, 33 of Fawkner, said he resented paying more for his beer and he believed taxes were rising to deter binge drinking and under-aged drinkers.

“I’m a hard worker who enjoys a drink.” he said. “Why should I have to pay more because of binge drinkers and those who shouldn’t be drinking in the first place? I’m not one of them, and it’s not my problem.”

PS4 Supply Can’t Keep Up With Demand, Says Sony

The supply problem that the PlayStation 4 is facing after launching in more than 50 countries is a serious issue for Sony… in a good way. The company’s console is in such high demand that no matter how often they try to bring in weekly shipments, they just can’t keep up.

It was recently revealed in an interview with GotGame by Sony’s head of hardware marketing, John Koller, that the PlayStation 4’s supply situation – one that Sony has been suffering since it launched late last year – hasn’t gone away. Gamers are decidedly head-over-heels for the console, saying…

This is not a lie. We recently reported on Microsoft struggling to move an extra 900,000 SKUs of the Xbox One off store shelves. The company is having serious issues getting people to pick up the $500 unit, which is both more expensive and technically inferior than the PS4. Based on the brief charts, however, you can see that the Now In Stock pages do coincide with Koller’s comments: the PS4 is regularly out of stock.

Koller went on to say that…

By comparison, we have Sony in more territories with 4.2 million units sold and tons of demand, and the Xbox One in fewer territories with 3 million units sold and lesser demand. It’s not looking good for the Micro ‘S’.

Then again, February will be the real challenge for both console manufacturers since there are no super-big releases scheduled to drop and a lot of the holiday momentum will be wearing off.

The software will have to move the consoles for the fence-sitters, and at this point I just don’t see anything in the February line-up that looks like it will get people to commit to the $400 PS4 or $500 Xbox One.

The only saving grace for Sony is that Microsoft’s foot-shooting messed them up so bad that they basically pushed gamers into the arms of the PS4. With a higher price point and even more rumors about another multiplatform game set to underperform on the Xbox One graphically, as noted on Spawn First, the Xbox One is facing an uphill struggle that might nearly rival Nintendo’s.

I imagine 2014 will be a battle for second place between Microsoft and Nintendo, but I’m hoping we get to see another rematch over the long haul between Sony and Nintendo this time around.

 

European Central Bank keeps rates at record 0.25% low

The European Central Bank (ECB) has kept its benchmark interest rate at a record low of 0.25%.

ECB said president Mario Draghi said rates would “remain at present or lower levels for an extended period of time”.

There had been speculation that the bank might act to bolster fragile growth in the 18-nation euro bloc.

With eurozone inflation falling below 1%, there is also concern about deflation as consumers delay purchases in the hope of prices falling further.

The eurozone economy grew only 0.1% in the third quarter, while inflation, at only 0.8%, remains below the ECB’s goal of about 2%.

Mr Draghi told a news conference that the eurozone “may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below but close to 2% later on”.

He said the economic risks for the eurozone “remain on the downside” and that the ECB is ready to “take further decisive action” using “all available tools” to spur a weak recovery.

In November, the ECB cut the rate to 0.25%, from 0.5%, which Mr Draghi said at the time was done because of continuing economic weakness among some eurozone members.

He told Thursday’s news conference: “I’ll be very cautious about saying [the crisis is over]. The recovery is there, but it is weak, modest and fragile. Meaning that there are several risks – financial, economic, geopolitical, political – that could undermine easily this recovery.”

Mr Draghi said that the ECB was keeping a close eye on the low inflation rate, but said it was important to understand that the recent fall was in large part due to a technical adjustment of service sector data in Germany.

“We will act when we have reason to think that our medium-term assessment for inflation is changing… Let me be absolutely clear, we have a mandate to maintain price stability – in both directions,” Mr Draghi said.

He gave no indication of what action the ECB might take, but said the bank would consider all measures.

Following his comments that interest rates might stay low for some time, the euro fell to 82.27 pence, its lowest against sterling in a year.

Neil Jones, head of European hedge fund sales at Mizuho Corporate Bank, said: “The UK will be the first to raise rates out of the major economies. That was reinforced today.”

http://www.bbc.co.uk/news/business-25669663

US fast-food workers stage nationwide strike

Fast-food restaurant workers across the US are staging a 24-hour strike in protest against low wages.

Walkouts were reported in New York, Chicago, Washington DC, and also Detroit, Michigan; Raleigh, North Carolina; and Pittsburgh, Pennsylvania.

Organisers hoped workers in as many as 100 cities will participate in what is the latest in a series of such actions.

Unions want a $15-an-hour (£9.19) federal minimum wage. The current one, set in 2009, is $7.25 per hour.

President Barack Obama, who has backed a Senate measure to increase the minimum to $10.10, specifically mentioned fast-food workers “who work their tails off and are still living at or barely above poverty”, in an economic policy speech on Wednesday.

‘We can’t survive’

His Democratic allies, who control the upper chamber of Congress, have said a vote on the matter could be held this month.

But even if it passes the Senate, it is not clear if it would be approved by the Republican-led House of Representatives.

Nearly 100 protestors gathered around a Wendy’s restaurant in Brooklyn, New York, at midday, carrying signs saying “stick together for $15/hr”.

Shaquena Davis told the BBC she worked at the fast-food restaurant, making $7.25.

“I got kicked out of school because I couldn’t pay the bill,” she said. “I’m living in a one-bedroom apartment with five people.”

Kachelle Krump, 23, works at a Burger King in the area. She told the BBC she works 16 to 20 hours a week and would like more hours, but that management had been unhelpful.

“I have a child who is seven years old – she’s in school, she needs things,” said Ms Krump.

Of her employer, Burger King, she said: “It’s a billion dollar company. Share a little.”

In Detroit, about 50 demonstrators turned out for an early morning rally in front of a McDonald’s, including a handful of employees who walked off the job. However, the restaurant stayed open.

Another 40 demonstrators rallied at a Burger King in Atlanta.

The American fast-food industry has come under increasing scrutiny because part-time jobs, including retail and food positions, have made up most of the job growth since the recession.

It is not yet clear how many fast-food restaurants will be affected by Thursday’s industrial action.

The workers’ last nationwide strike, in August, was patchy, with some restaurants appearing to function normally while others were unable to do business.

The National Restaurant Association, an industry lobbying group, called the strikes a “campaign engineered by national labour groups”, claiming the vast majority of participants were in fact union protestors.

The association said firms already face “great uncertainty”.

“Calls to double the minimum wage only intensify the challenges faced by job creators.”

This week, a measure in the tiny airport town of SeaTac, Washington state, to raise the minimum wage to $15 per hour passed by 77 votes.

As a result, some 6,300 workers at SeaTac’s airport, which primarily serves the region’s largest city, Seattle, will be paid the highest minimum wage in the nation.

Saba Belachew is one of those workers. She told the BBC: “It will really change my life. I don’t have to work two jobs. [I can] support my family, go back to school. I’m so excited.”

However, Alaska Airlines, the airport’s biggest airline, has sued to block the measure.

Regardless, union organisers in SeaTac said they were hoping the success of their vote would inspire workers protesting around the nation.

“What we need is a social movement in this country that says enough is enough,” said David Rolf, the president of the local Service Employees International Union.

http://www.bbc.co.uk/news/world-us-canada-25239433

NYC bans tobacco sales to under 21

Mayor Michael Bloomberg signed landmark legislation Tuesday banning the sale of tobacco products to anyone under the age of 21, making New York the first large city or state in the country to prohibit sales to young adults.

During a brief ceremony at City Hall, Bloomberg said raising the legal purchase age from 18 to 21 will help prevent young people from experimenting with tobacco at the age when they are most likely to become addicted. City health officials say 80 percent of smokers start before age 21.

The mayor, a former smoker, also signed legislation setting a minimum price for all cigarettes sold in the city: $10.50 per pack. The same new law bans retailers from offering coupons, 2-for-1 specials, or other discounts.

Bloomberg turned away criticism that the measures would be economically harmful to thousands of city convenience stores and possibly lead to job losses. “This is an issue of whether we are going to kill people,” Bloomberg said. People who raise the economic argument, he said, “really ought to look in the mirror and be ashamed.”

The ban does have limitations. People under age 21 can still possess tobacco legally, they just can’t buy it. Underage smokers will still be able to steal cigarettes from their parents, bum them from friends, stock up during trips beyond city limits or buy them from the black-market dealers.

http://www.timesunion.com/news/article/NYC-bans-tobacco-sales-to-under-21-5000335.php

Economists predict spike in chocolate prices, wine shortage

Last year it was the so-called bacon apocalypse (or the “aporkalypse”).

Then beef prices soared.

And chicken wings followed.

Now economic analysts are hitting food lovers in their sweet spots, forecasting spiking chocolate prices and a shortage of wine.

The causes: increased global demand and decreased supply due to bad weather in the world’s wine- and cocoa-producing regions.

“The cost of taking a girl on a date just went up,” joked Sean Snaith, an economics professor at the University of Central Florida.

But local chocolatiers aren’t as amused.

“Cocoa butter prices, I believe, have gone up 70 percent or so over the last 12 months,” said Stephanie Fincher, co-owner of Royal Palm Chocolates in Naples. “We’re personally trying to hold on pricing as much as we can for our consumers, but we’re having to take a close look at increases, for sure.”

In the wine world, global demand exceeded supply by 300 million cases in 2012, and the future could be bleaker, a Morgan Stanley research report released last month said. The study blames the shortfall on increased demand – everyone will drink to that, apparently – bad weather and fewer vineyards.

“Data suggests there may be insufficient supply to meet demand in coming years, as current vintages are released,” the report said.

World wine production peaked in 2004, when the surplus reached 600 million cases. But the latest numbers represent the greatest shortfall in four decades. Americans drink about 12 percent of the world’s wine, and per-capita consumption is booming. China, the world’s fifth largest importer, has quadrupled its consumption in the past five years.

Snaith said emerging markets in Asia and South America have driven up demand, and thus prices, on everything from beef to oil to luxury goods such as chocolate and wine.

“These are emerging middle class consumers that, for the first time, have disposable incomes,” Snaith said. “You start looking past the bare necessities to some of the niceties of life. Americans did the same thing when our economy first boomed.”

Snaith said shortages don’t mean you won’t be able to find wine or chocolate, just that you will likely pay more for it when you do.

Fort Myers chocolatier Norman Love hopes his annual contracts with various international chocolate producers will help insulate his customers from price hikes. Love’s shop uses more than 175,000 pounds of chocolate each year, from artisanal Swiss chocolates to $25-per-pound single-origin chocolates hand processed in the valleys of Peru.

Love hasn’t yet seen 70 percent chocolate price increases, though he did see prices jump about 20 percent from 2010 to 2011, and increase steadily since.

At Decanted Wine & Beer in Naples, salesman Douglas Ferrie said they haven’t seen a notable change in wholesale wine prices. Ferrie said the wineries most prone to shortages tend to be higher-end vintners in the Burgundy and Bordeaux regions of France.

http://www.wtsp.com/news/national/article/343812/81/Economists-predict-spike-in-chocolate-prices-wine-shortage

Npower to raise energy prices by 10.4%

Energy firm Npower has become the third major supplier to announce price rises, with a dual-fuel bill to go up 10.4%.

The price rise will take effect on 1 December, and is the highest increase announced by any supplier so far.

SSE will increase prices by 8.2% from 15 November and British Gas said prices would go up by 9.2% on 23 November.

The Npower increase includes an electricity price rise of 9.3% and a gas price rise of 11.1%. The move will affect 3.1 million customers.

The change will add an extra £137 to an annual average dual-fuel bill, taking it to £1,459.

‘Unwelcome’
Between August and December last year, the “big six” energy companies outlined price rises of between 6% and 10.8%.

“I know that any increases to household bills are always unwelcome, and this is not a decision that we have taken lightly. We will continue to take steps where we can to reduce the impact of the external influences on energy bills,” said Paul Massara, chief executive of Npower.

Npower echoed the view of the other suppliers by saying that the rise was the result of cost increases in delivering energy to homes, fulfilling government schemes and raw materials.

The company said that it “aimed” to make a profit of five pence in the pound, which it regarded as a “fair return” for delivering energy reliably to people’s homes and for the risks it has to take on.

Clare Francis, of price comparison website Moneysupermarket, said she expected the other major suppliers to follow suit with price rises.

“The domino effect has really kicked in,” she said.

But Npower said that all suppliers faced the same pressures on costs, so there was a “natural tendency” for prices to move at the same time.

“When Tesco puts up the price of a loaf of bread by 5p no-one is surprised if Sainsbury’s do the same because they are subject to the same costs. We are clear that the market is competitive,” the company said.

It also challenged the view that prices shot up when wholesale costs went up but fell slowly after wholesale costs dropped.

Yet, Stephen Fitzpatrick, the founder of Ovo Energy, said that he had not seen any rises in wholesale prices recently. The company, one of the smallest energy suppliers in the UK, put up prices earlier in the year.

Political row
The energy price increases have coincided with considerable political debate about the cost to households.

Labour leader Ed Miliband has pledged a price freeze for 20 months if his party wins the next election. But Prime Minister David Cameron branded Mr Miliband’s price freeze plan as a “con”, saying that he did not have control over the worldwide price of gas.

Mr Massara, of Npower, said that the Labour proposal was “superficially attractive”, but it would not lead to lower sustainable prices.

“It doesn’t cut the growing costs of supplying energy. Only 16% of the bill is under our control and imposing price controls discourages investment, increases uncertainty and ultimately leads to higher prices,” he said.

The latest price rise comes on the day the government has given the go-ahead for the UK’s first new nuclear station in a generation.

There are fears from one consumer group that energy bills could go up, as the owners of the nuclear plant are being guaranteed a price for electricity.

“Rising energy bills are one of the top concerns for cash-strapped consumers, so everyone will want to be assured that the price the government has agreed for new nuclear power is fair,” said Richard Lloyd, executive director at Which?.

France’s EDF Energy will lead a consortium, which includes Chinese investors, to build the Hinkley Point C plant in Somerset. Ministers say the deal will help take the UK towards low-carbon power and lower generating costs in the future.

Consumer groups, including watchdog Consumer Futures, are calling for reviews to look at the structure of the energy market, and to consider the costs and benefits of government policy.

http://www.bbc.co.uk/news/business-24607242

High uranium levels found in water supply

Residents of Manzanola have been notified of elevated levels of uranium in their water, but it is not considered a health emergency.

A letter sent to households, businesses and schools on Oct. 3 recommends, but does not require, finding an alternative drinking water supply. Drinking the water over many years could lead to health problems.

An average of 32 parts per million was found over the past year, slightly above the maximum contaminant level of 30 ppm.

The town of Manzanola plans to adjust its blending ration in the coming months to correct the problem.

High levels of radionuclides in Lower Arkansas Valley wells are a problem, and one reason communties such as Manzanola are supporting the Arkansas Valley Conduit, a source of clean drinking water.

There have been few calls in response to the letter, said Sylvia Watkins, town clerk.

Australian beer consumption at a 66-year low

Australia’s love for beer has sunk to the lowest level since the days of the post-war six o’clock swill.
A more sophisticated approach to drinking is behind the rising popularity of wine, and the shunning of pre-mixed drinks and spirits.
Tim Schwilk, the owner of a Sydney family wine tasting business, certainly thinks so as official figures show beer consumption dropping to the lowest point since 1945 and 1946, when Australian pubs stopped serving patrons at 6pm.
“People are actually drinking to enjoy the experience, enjoy the occasion rather than just to get drunk,” the Sydney Wine Centre manager said.
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“That may be a bit easier to see in wine.
“There’s layers of flavour and complexity that allow it to be enjoyed and shared easier than beer.”
Statistician Louise Gates said falling beer drinking levels, per person, continued a trend that started in the 1970s.
“There’s been an increase in wine consumption,” she said in a statement.
Australian Bureau of Statistics data show beer levels per person falling to a 66-year low of 4.14 litres, in 2011/12, as wine consumption rises to near record high of 3.8 litres.
CommSec chief economist Craig James said wine was poised to one day overtake beer.
Beer availability levels fell 2.3 per cent in 2011/12, compared with the preceding financial year, as wine rose 1.9 per cent.
Pre-mixed drinks also dropped 2.5 per cent as spirit levels fell four per cent.
Overall alcohol consumption fell for the second year running, dropping by 1.4 million litres in 2011/12.
“Random breath testing, immigration, greater variety in leisure pursuits, increases in income and wealth, diet, lifestyle – all these factors and more explain why Aussies are drinking less beer, more wine and drinking less alcohol more generally,” Mr James said.

http://www.theage.com.au/national/australian-beer-consumption-at-a-66year-low-20130918-2tznw.html

Wheat Rises on High Demand as Corn Dips from Strong Harvest

According to a recent Reuters article, U.S. wheat futures continue to rise thanks to global demand while corn slides as United States growers are expected to harvest a record crop.

For the second straight day, and eighth out of eleven sessions, wheat futures have risen on the Chicago Board of Trade, led by strong global demand headed by China. The increased Chinese demand for wheat has been spurred by adverse weather conditions that damaged as much as 16% of the country’s crop in May and June, boosting demand for U.S. supplies.

Luke Mathews, commodities strategist at the Commonwealth Bank of Australia, says about crop demand in the article, “We continue to see solid imports of wheat into the Chinese market. The corn market has underperformed wheat in the last couple of weeks.”

While wheat demand has continued to climb, the corn market has started going the opposite direction. Corn eased on Monday, nearing a six-week low as the market remained under pressure from record harvesting predictions in the United States.

The China National Grain and Oils Information Center increased its projections for Chinese import demand to 7.5 million metric tons from 6.5 million, according to Reuters. If this number is realized, it would represent the highest figure of imports for China in a decade.

Wheat futures continue to climb, fueled by global demand led by the Chinese market. Corn futures have steadily declined, nearing a six-week low due to the expected record harvest in the United States according to the article.

http://www.machinefinder.com/ww/en-US/articles/wheat-rises-on-high-demand-as-corn-dips-from-strong-harvest-2358