Ned O'Keeffe
Question:70 Mr. N. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has for licensed premises. [11147/01]
Written Answers - Drink Prices.
The drinks prices order was only one element of an overall package of measures approved by the Government last June to address the inflationary pressures on the economy. When announcing the anti-inflationary package, the Government made it clear that it was only pending the impact of a significant increase in competition in the licensed trade that the circumstances justified the imposition of temporary price controls. The statutory control on the price of drink was clearly understood to be an interim measure.
It is acknowledged that many publicans have acted in a reasonable manner following the expiry of the drinks order. It is also clear that some publicans took the opportunity of the lifting of the order to impose excessive price increases. The indications are that the proportion of pubs increasing their prices and the level of increases being imposed are higher in Dublin that the rest of the country. Price freezing legislation has long been recognised as a blunt instrument. Competition provides the most effective means of keeping prices down. This holds true for the licensed trade just as much as for any other sector of the economy. All of these factors are being taken into account in the consideration of whether a new drinks prices order should be introduced.