Dáil Éireann Debate, Tuesday - 12 June 2018
668. Deputy Anne Rabbitte asked the Minister for Health his plans to amend the Public Health (Alcohol) Bill 2015 to include a ban on below invoice cost selling in view of the fact that minimum unit pricing will be delayed pending the formation of a power sharing executive in Northern Ireland in order to ensure the practice of retailing cheap alcohol at below cost cannot continue in the short-term; and if he will make a statement on the matter. [24617/18]
Amharc ar fhreagra669. Deputy Anne Rabbitte asked the Minister for Health his views on introducing a ban on below invoice cost selling of alcohol to augment minimum unit pricing in view of concerns that minimum unit pricing will not impact the pricing of premium branded alcoholic products; and if he will make a statement on the matter. [24619/18]
Amharc ar fhreagra670. Deputy Anne Rabbitte asked the Minister for Health his views on introducing a ban on below invoice cost selling of alcohol in view of the fact that minimum unit pricing would still legally allow for a six pack of beer to be discounted by as much as €4.50 from its invoice cost which could not happen if there was a ban on below invoice cost selling; and if he will make a statement on the matter. [24620/18]
Amharc ar fhreagraI propose to take Questions Nos. 668 to 670, inclusive, together.
The primary policy objectives of the Public Health (Alcohol) Bill are to:
- regulate the supply and price of alcohol in order to minimise the possibility and incidence of alcohol related harm;
- delay the initiation of alcohol consumption by children and young people;
- reduce the harms caused by the misuse of alcohol; and
- reduce alcohol consumption to 9.1 litres of pure alcohol per person per annum by 2020.
One of the measures through which the Bill aims to achieve its objectives is through the introduction of Minimum unit pricing.
Minimum unit pricing targets cheaper alcohol relative to its strength because the price is determined by and is directly proportionate to the amount of pure alcohol in the drink. This means that the price of individual products will depend on their strength.
A ban on below cost selling based on the invoice cost price of the alcohol product to the retailer does not target strong, cheap alcohol. It does not address the health harms associated with the harmful consumption of strong cheap alcohol products. This is because products that are cheap relative to their alcohol content will continue to be sold at a level that represents a serious threat to public health.
Research carried out by the University of Sheffield indicates that a ban on below-cost selling would have a negligible impact on alcohol consumption or related harms as many of the cheapest alcohol products are already priced in or around excise duty plus VAT.
In addition to Minimum unit pricing the Bill provides for the making of regulations prohibiting or restricting price-based promotions which, either alone, or in tandem with minimum unit pricing would be effective in reducing alcohol consumption, related harms and associated costs.
The Government Decision approving Minimum unit pricing acknowledged the need for this jurisdiction and Northern Ireland to act simultaneously in order to allay concerns about impacts on cross-border trade. I recognise that it will be most effective if an equivalent measure is introduced in Northern Ireland at the same time. However, Minimum Unit Pricing is an important measure and on that basis I will reflect further, after the enactment of the Bill, before deciding on the timing of the commencement of this provision.
