asked the Minister for Industry and Commerce if the prices of EEC wines have increased in this country since entry to the community; and, if so, why.
Ceisteanna—Questions. Oral Answers. - EEC Wine Prices.
12.
My Department has established that since 1st January, 1973, wholesale wine prices in this country have increased by amounts ranging from 7 per cent to 52 per cent.
The price paid for EEC wines depends to a large extent on the price fixed under EEC regulations which are concerned with ensuring that wine producers receive an adequate return. The price fixed is based on price trends recorded within the EEC.
From 1971-72 to 1972-73 wine prices within the EEC increased by amounts ranging from 17 per cent to 36 per cent depending on the type of wine. In addition, other factors such as the devaluation of the pound sterling and transport costs have contributed to price increases in this country.
As I recollect it, in budgets of recent years non-UK spirits and wines were subject to additional taxation over and above those covered by the Anglo-Irish trade agreement. In view of that, is there now discrimination in taxation against continental wines which accounts for the increase when everybody expected a reduction?
I think the increase in price is due to factors outside excise duty and tariffs altogether. There has been some control by continental governments on the type of wines that may be labelled in a certain way and this tends to reduce the quantity available and increase their price. As far as I know, there is no discrepancy.
The Minister said the increase was of the order of about 17 per cent but the increase on the market here is very considerably more than that.
About 50 per cent.
High quality French and German wines of a particular year are sometimes sold by auction. It is really a question of supply and demand. If there is a high quality wine, there is demand for it and the price tends to go up. This has nothing to do with being inside or outside the EEC.
(Interruptions.)