‘Don’t hike booze in budget’

The drinks industry has urged the Government not to increase excise on alcohol in the next budget as it could threaten a sector that has huge growth potential in the future.

“This is an exciting sector that’s going through considerable development, with dozens of drinks manufacturers setting up shop across the country, including 21 whiskey distilleries in various stages of planning at the moment.

“This is leading the way for an Irish whiskey renaissance and a potential boost to the €1.4bn export figure cited in the latest data,” said Tom Burke, senior executive at the Alcohol Beverage Federation of Ireland.

Exports of drinks made in Ireland reached €1.4bn in 2012 with total investment in the sector at €118.4m, according to data compiled by the Drinks Industry Group of Ireland using figures from the 2012 census of industrial production.

“However, the ability of the sector to reach its full potential and achieve sustainable growth is being put at risk by the Government who have increased excise on alcohol in the last two budgets.

“Irish drinks manufacturers, such as the small whiskey producers, will be unable to sell their high-quality products in the home market, which will have a knock-on effect on Irish farmers and publicans hoping to get a boost from the exciting developments in the sector,” he added.

The drinks manufacturing sector exports 45% of turnover. It directly employs close to 3,500 people across the country with a wage pay-out of €209.6m; it has a turnover of €3.1bn and makes a €1.7bn contribution to the rural economy through the purchase of raw materials.

Tony Foley, economist at DCU and author of the report said: “The data released recently by the CSO illustrates just how important the drinks manufacturing sector is to the Irish economy. In total, the sector invested €118.4m in the Irish economy in 2012. Since then, we have seen large investments taking place across the sector, with Diageo announcing €169m in a new brewery at St James’s Gate which was opened last week and Irish Distillers Pernod Ricard announcing an investment of €200m in its Midleton Distillery and maturation facility in Cork last year.”