Dáil Éireann Debate, Wednesday - 16 January 2013
108. Deputy Bernard J. Durkan asked the Minister for Finance his future plans if any, to help alleviate hardship on publicans whose businesses have been adversely affected by the increase in the price of alcoholic beverages in recent years and the unregulated competition from large retail chains; and if he will make a statement on the matter. [57989/12]
View answerBecause of successive price increases by the trade, the specific rather than ad valorem nature of the duties and the reduction of Alcohol Products Tax rates in Budget 2010, the value of excise duty rates on beer and wine (when measured as a percentage of retail prices) has fallen over the period 2002 to 2012.
In this context, prior to Budget 2013 there has been no general increase in the tax on alcohol products since 1994. The most recent increase on beer was in 1994. Excise on cider was increased in Budget 2002 to bring it into line with the rate for beer. Excise on spirits was increased the following year, and this increase was also applied to spirits-based alcopops. Excise on wine, with pro-rata increases for certain fermented and intermediate products, was increased in Budget 2009. There was a general decrease in rates for all alcohol products, of around 20% (inclusive of VAT), in Budget 2010. There was no change in Budgets 2011 and 2012. The Deputy should note that a 10 cent increase on beer still leaves the excise duty on beer below the 2010 level. The expected yield from these increases is approximately €180 million, a significant part of the overall increased revenue requirement for 2013.
The report of the National Substance Misuse Strategy Steering Group is a roadmap for the future direction of policy to deal with the misuse of alcohol. Real and tangible proposals are currently being finalised on foot of the report’s recommendations. My colleague, the Minister for Health intends to submit these proposals to the Government for consideration and approval as soon as possible.
It is emphasised that these proposals cover all of the areas mentioned in the report such as:
- Legislation on minimum unit pricing which is about setting a statutory floor price per gram of alcohol;
- access and availability of alcohol - including of course structural separation in retail units where alcohol is sold; and
- advertising and sponsorship.
As part of the process of developing these proposals, the Department of Health is in continuing discussions with various Departments. These include the Departments of Arts, Heritage and Gaeltacht; Transport, Tourism & Sport; Justice & Equality; and Communications, Energy & Natural Resources.
In the meantime, work on developing a framework for the necessary Department of Health legislation, governing among others, minimum unit pricing, is continuing. For example, in conjunction with Northern Ireland, a health impact assessment is being commissioned as part of the process of developing a legislative basis for minimum unit pricing. The health impact assessment will study the impact of different minimum prices on a range of areas such as health, crime and likely economic impact.
