Adjournment Debate. - Drink Prices. – Dáil Éireann (27th Dáil) – Thursday, 30 Jan 1997

Adjournment Debate. - Drink Prices.

Mrs. O'Rourke

I am pleased to have this opportunity to raise the matter of the price of the pint. I was pleased to raise it this morning and to ask the Taoiseach his opinion on it. He replied at great length, but there were concerted jeers, notably from the Minister for Health, Deputy Noonan, and the Minister of State, Deputy Durkan. The Minister for Health, Deputy Noonan, said, "There is not a man left in Fianna Fáil" implying that it was not up to a woman to raise this matter. The Minister of State, Deputy Durkan, said, "I did not know that the Deputy prefers a pint". I was doing my job raising concerns on behalf of consumers and those kind of comments were made across the floor by a particularly red neck branch of Fine Gael.

Will the Minister of State with responsibility for commerce, science and technology at the Department of Enterprise and Employment say what he intends to do about the matter? I read what he is quoted as saying in the newspapers yesterday. I know he met representatives of the Licensed Vintners' Association today and I admire his alacrity in getting to grips with the matter. It appears from informal soundings I made that a considerable minority of licensed vintners, perhaps up to 25 per cent to 30 per cent, jumped the gun by raising the price of the pint prior to, during and immediately after Christmas. I presume the Minister, when replying, will deal with that matter. I also understand the Dublin sector of the Licensed Vintners' Association — this increase does not concern rural Ireland — were not in favour of this type of unilateral action and asked its members not to engage in it.

At a time when we are told there is an economic boom and one can repair to hotels, lounges and various places of enjoyment, for many people a pint remains one of life's few pleasures, particularly for the unemployed or those on low wages. Consumers do not like and do not intend to be ripped off. It appears consumers were put at a disadvantage because of the action of some, a minority of licensed vintners in Dublin. Will the Minister of State invoke the Price Acts. I know from my time in the Department of Enterprise and Employment that those Acts are not subsumed, they are on the Statute Book. They are in abeyance, but that does not mean they cannot be revived.

Those who raised the price of the pint injudiciously should now bring down their prices and, if they do not and are not in agreement with the Licensed Vintners' Association, the Minister of State, the Department and Members of the House — in raising this matter I am speaking on behalf of the Fianna Fáil Party — they should be made do so. Whatever mechanism can be used should be used to control prices, whether the Competition Authority and its new enforcement director, the Prices Acts or various legislation governing prices. It was considered that competition would take care of prices and that there would not be any need to continue to enforce the provisions of those Acts, but I question that.

The price increase imposed by a minority of licensed vintners represents shabby treatment of consumers. They have suffered. Because the pint could be considered one of life's few pleasures, even though the imposition of this increase breaks the law, it could be considered as not a very serious matter. One could say that people who go out for a pint can afford it, but I do not hold that point of view. The consumer, in some cases, has been fleeced. What does the Minister intend to do about that? If he intends to take strong action, I will support him.

Minister of State at the Department of Enterprise and Employment (Mr. Rabbitte)

I am grateful the Deputy raised this important issue. She is particularly well informed about the issue. As Deputy O'Rourke said, about 25 per cent to 30 per cent of publicans in the Dublin area broke ranks by imposing an arbitrary increase of 5p on the pint before Christmas and since then the price has increased and in the past week the price continued to rise. That matter has caused serious disquiet in Government.

Habitually we have negotiations with the Licensed Vintners' Association of Ireland. It represents an important trade, which is a major employer and a valuable source of revenue for the Minister for Finance and the Exchequer. However, representations were made to us concerning the imminent budget. It will be noted that for the third consecutive budget introduced by the Government there has not been any increase in excise duty on alcoholic drink. There has not been an increase in the price of a pint since 1994 when Deputy Ahern the then Minister for Finance imposed a 3p increase. That is reflected in the CSO figures. From February 1994 to November 1996 the price taken by the publicans was 8 per cent against a consumer price index for the same period of 6.1 per cent.

The important point Deputy O'Rourke was getting at is that the take by the publicans over that period has increased; in March 1991 the publicans' take was 35.4 per cent, in June 1996 it was 40 per cent. We got little enough credit for not increasing excise duties in the budget, but some publicans have increased the price of the pint.

For those reasons I share the concerns raised by Deputy O'Rourke. Two courses of action are open to me. As Deputy O'Rourke rightly said, the Prices Acts are still on the Statute Book. Price controls have been put in abeyance, but as the Prices Acts have not been repealed the power is there to take action. Under the Competition (Amendment) Act passed last year the Competition Authority has the right to investigate and, depending on whether it finds contraventions of legislation or anti-competitive practice, it can initiate prosecutions. In spelling out to the Licensed Vintners' Association the powers open to Government and the fact that the Government is incensed at what has happened, I was able to persuade them to agree to call back the increases that have been imposed.

The joint statement agreed with the Licensed Vintners' Association reads:

Mr. Pat Rabbitte, T.D., Minister for Commerce, Science and Technology this afternoon (Thursday, 30th January, 1997) met with representatives of the Licensed Vintners' Association to discuss the increases in the price of beer over the past two months.

At the meeting it was established that a minority of Dublin publicans had taken a price increase over the last two months and this number has been rising over the last week. At recent area meetings, the LVA had recommended price restraint at this time. It was noted that in the recent Budget, no further excise was imposed.

Both the LVA and the Minister agreed to call on these publicans to take immediate steps to bring their price levels back to those obtaining in early November, 1996.

If this doesn't happen forthwith, the Minister made clear that he will make a price fixing Order retrospective to, and freezing prices at, their November, 1996 level.

I agree with the Deputy that for the male drinker and an increasing number of female drinkers, the pint of plain is "yer only man".

Dáil Éireann debate - Thursday, 30 Jan 1997