Former federal ALP minister, Graham Richardson, has joined the chorus calling for Australia to implement a tax on sugar. From The Australian:
Probably no product in the world that has managed to penetrate more countries and cultures than Coca-Cola… Chocka block with sugar this addictive drink plays its part in the obesity plague… Aided and abetted by our predilection for sugary foods we are now seeing kids as young as 12 presenting with diabetes. There are now more overweight schoolchildren than ever…
The big sugar companies act much like the tobacco industry did 40 years ago…
It is worth remembering that diabetes leads to a host of other serious health problems. Diabetics are far more likely to suffer from heart trouble, poor eyesight and diminished blood flow to the feet. This adds enormously to our health budget and as this diabetes epidemic explodes those costs can only rise substantially. State and Federal governments must act on this crisis and they must act now…
While politicians can now expect to be bombarded with a welter of fake research, they must introduce a tax on sugar and they must not delay in implementing it. The aim would be to slowly decrease soft drink consumption. The teeth of our children will improve and that also reduces the health bill. Cigarette smoking has been hit hard by a combination of increased taxes and graphic information campaigns. The same must happen with sugar.
The arguments for limiting sugar in beverages are strong.
The Grattan Institute’s report entitled A sugary drinks tax Recovering the community costs of obesity showed that more than one in four Australian adults are classified as obese – up from one in ten in the early 1980s – whereas 7% of Australian children are now obese:
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In addition to personal costs, Grattan showed that obese people receive more healthcare than other people, with taxpayers funding most of the costs of those services at a cost of around $5.3 billion in 2014-15:
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.