Vol. 510 No. 6
204 Mr. Kenny asked the Minister for Finance the way in which it is proposed to implement and monitor the recent EU directive which will result in the price of a bottle of wine being reduced at retail point; the average saving to consumers; and if he will make a statement on the matter. [23483/99]
It is not correct to say that a recent EU directive has issued which will result in a reduction in the price of a bottle of wine. The position is that the EU Commission has issued a reasoned opinion to Ireland, pursuant to Article 226 of the EU Treaty, concerning Directive 92/84/EEC on the approximation of the rates of excise duty on alcoholic beverages. The opinion argues that the present Irish alcohol tax regime is contrary to Article 90 of the EU Treaty in that the Irish excise duty on wine is, in its view, discriminatory as a consequence of the lower excise imposed on beer.
We have responded to the Commission pointing out that: Irish excise rates on alcohol broadly reflect alcoholic strength of products; the ratio between beer-wine is approximately 1:3, reflecting the relative alcoholic strength of beer and wine actually sold in Ireland; beer and wine are not in the sort of direct competition which the Commission maintain and are not marketed, distributed or sold in the same way; and the EU Commission permits a zero rate of excise on wine in many member states which tax beer. This in itself is a distortion which the Commission has not acted on. It is a matter for the Commission to decide in the light of our response whether to pursue its case under legal procedures provided for in the treaty.
