Dáil Éireann díospóireacht -
Wednesday, 9 Jul 1997

Vol. 480 No. 2

Other Questions. - Price Controls.

Pat Rabbitte

Ceist:

39 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise and Employment her policies on the control of drink prices; the steps, if any, she intends to take to control the price of the pint; if she intends to maintain the price control orders introduced by the previous Minister, Deputy Richard Bruton; the representations, if any, she has received to lift the price control orders; her response to any such representations; and if she will make a statement on the matter. [13754/97]

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

I have no plans to revoke the Retail Prices (Intoxicating Liquor) Order, 1997, which, with effect from 11 March 1997, froze the price of drink sold in licensed premises outside the Dublin metropolitan area at the levels pertaining on 4 November 1996. A brewer has made representations seeking the removal of the order. I intend to meet the company soon to discuss its concerns. The Deputy will be aware the Competition Authority has on its own initiative undertaken a study of the liquor licensing laws and other issues and their impact on competition in the retail drinks market in the State. The conclusion of this study will form an input to future policy on all matters pertaining to drink prices.

Mr. Rabbitte

I welcome the solidarity expressed by the Minister of State. In case history allocates blame for this decision to Deputy Richard Bruton, I would indicate that I introduced the order. When the Competition Authority's study is complete does the Minister of State contemplate lifting the price order?

Mr. T. Kitt

I intend to deal with the matter step by step. There are many elements involved in this issue. The Licensed Vintners' Association and the Vintners' Federation of Ireland have sought a lifting of the order. The Government's view is that we should be driven by the need for continued price restraint, particularly given that we are in a period in which we are trying to qualify for EMU. This is an important aspect in that process. I will deal with the issue in a manner similar to the manner in which it was dealt with by my predecessor as Minister of State, Deputy Rabbitte. My first move will be to meet the brewer — Guinness — tomorrow. I cannot give a commitment on the question the Deputy raised because it is important to deal with the matter on a hands-on basis.

Mr. R. Bruton

When will the Competition Authority's report be available?

Mr. T. Kitt

I understand it will come to hand in October or November.

Mr. Rabbitte

Can I take it pint drinkers are safe over the summer and that no action will be taken before October or November?

Mr. T. Kitt

I will do everything possible to protect and assist pint drinkers. There are serious broader issues involved related to inflation.

Mr. McDowell

Is the Minister of State aware of the unfinished work done by the Select Committee on Legislation and Security on reviewing the liquor licensing laws, much of which parallels the study being undertaken by the Competition Authority? Is it his view that licensing hours should be extended?

Mr. T. Kitt

I am conscious of the work of that committee and the views of Deputies McDowell and Rabbitte on this matter. I am very anxious to examine the reports and the proposals made by the committee. As somebody who has been in this ministry for just one day, I am anxious to look sympathetically at any suggestions from that group of parliamentarians.

Mr. Quinn

I congratulate the Minister on his appointment which I have no doubt he will fill with his characteristic commitment and style. Will he reconsider a reply he gave earlier? Given that inflation is running below what had been predicted in January 1997, whatever other reasons there are for restraining any increase in the price of the pint, a cost increase in the cost of living index and consequently in inflation as a result of an increase in the price of the pint would not endanger our qualification for EMU.

Mr. T. Kitt

It is important that inflation is dampened down and I accept the Deputy's point that it is not a major factor in the debate.