Minimum alcohol price plans suffer setback over European Court of Justice ruling

Plans for a minimum alcohol price have suffered a setback after the European Court of Justice (ECJ) ruled similar plans in Scotland would breach EU law if less restrictive tax measures could be introduced.

Judges at the Luxembourg court found the policy would restrict the market, which could be avoided by the introduction of an alternative tax measure designed to increase the price of alcohol.

However, it said the test as to whether minimum unit pricing is legal or not is if it is more effective than other tax measures such as excise duty in achieving the desired public health benefit. It ruled that, ultimately, this was for national courts in individual EU states to decide.

Earlier this month Health Minister Leo Varadkar revealed plans to introduce a minimum unit price (MUP) for alcohol.

The proposed legislation is due to be passed by the middle of 2016, and will set a minimum price on alcohol of €1 a unit.

Reacting to the ECJ ruling, Mr Varadkar said it was broadly in line with the advocate general’s opinion in October and confirmed the Government would push ahead with the legislation.

“As I have always said, minimum unit pricing is one of the measures in the forthcoming Public Health Alcohol Bill.

“The bill completed second stage in the Seanad last week and I remain committed to the introduction of Minimum Unit Pricing and other measures in the bill.

“I have asked my officials to study further the implications of the judgment in conjunction with the office of the Attorney General,” he said.

Head of advocacy and communications with Alcohol Action Ireland, Conor Cullen said an MUP was a more targeted and effective measure than excise duty in tackling alcohol harm.

“MUP is able to target the very cheapest off-trade alcohol relative to its strength because the price is determined by, and directly proportionate to, the amount of alcohol in the drink.

“However, unlike excise duty, it would not affect all alcohol for sale in Ireland, only the very cheapest products in the off-trade, and would have absolutely no impact on the price of alcohol sold in pubs, clubs or restaurants,” he said.

President of the Royal College of Physicians of Ireland, Prof Frank Murray said international evidence proves that an MUP was an effective way to target those who consume large volumes of high-strength, cheap, alcohol.

The Vintners’ Federation of Ireland (VFI) welcomed the ruling if higher taxation on alcohol helped reduce alcohol-related health issues.

“We have one of the highest levels of taxation on alcohol in Europe and it clearly does not address these issues. Taxation as a measure is impotent when some supermarkets sell below the combined Vat and excise levels on alcohol as they currently do as a loss leader.

“The ECJ have referred this back to local courts and, on that basis, it is our opinion that the Government should continue to introduce a MUP in Ireland. It remains the best method to reduce harmful drinking and not other tax measures,” said a statement.

The Alcohol Beverage Federation of Ireland (ABFI) said the ruling meant the MUP was unlikely to be implementable in Ireland.

“ABFI wants to play its part in tackling alcohol misuse and believes that the reintroduction of a ban on below-cost selling would be a much more effective means of ensuring alcohol is not sold as a loss leader and would end the deep discounting that distorts the market.

“ABFI believes that excise increases are not a viable solution in addressing the sale and misuse of alcohol.

“Ireland already has the most expensive alcohol in the EU and pays amongst the highest taxes on alcohol.”

A separate ECJ preliminary ruling has backed the validity of an EU law directive which could see health warnings cover nearly two-thirds of cigarette packs.