Ivan Yates
Question:35 Mr. Yates asked the Minister for Finance if he has had any discussions with Guinness or other representatives of the drinks industry to ensure that there is no price increase in drink products in 1993.
Written Answers. - Alcoholic Drink Prices.
As is customary, I met with a number of representative groups in the run-up to this year's budget. Included in these groups was the Drinks Industry Group representing both producers and retailers. In the course of that meeting, the group highlighted the increased exposure to cross-Border distortions of trade that arises in the context of the Single Market and urged me to reduce, or, at a minimum, not to increase the excise duties on alcoholic products. In response, I referred to the restraint displayed by the Government in relation to the taxation of alcohol in recent years and pointed out that this restraint had not been matched by the industry where, for example, the tax exclusive price of the pint of stout has been increasing by more than double the rate of inflation.
While giving no commitments as to my budgetary intentions, I made it clear that, in the event of a continuation of the policy of restraint in this area, I would expect the industry to respond in a similar fashion. Consequently, it came as a major disappointment to me to be advised that a major player in the market intended to apply an increase to the price of its beer products with effect from early this month. Since then, I have had contacts with the company involved to express my concerns in this matter. I have also been in touch with the vintners organisations to indicate that the occasion of a producer price rise should not be used as an opportunity to impose unjustified price increases at retail level and I have asked them to request their members to behave responsibly in this matter.