Time for an eye-opener on alcohol
The single most contentious of the 78 proposed changes is the call for further increases in excise duties on alcohol.
The Task Force has been encouraged to believe hitting drinkers in their pockets is one of the most effective measures to tackle the problem, not only of alcohol abuse, but of Ireland’s relatively high consumption pattern, which sees each of us spend a yearly average of €1,942 on alcohol.
The task force’s belief in the effectiveness of this tactic has been re-enforced by the experience of two years ago when increases in taxes on spirits and cider in the 2002 budget resulted in the first overall drop in alcohol consumption since 1978.
Predictably, the Drinks Industry Group of Ireland (DIGI) has attempted to pour cold water on any further measures that would push up the cost of drink. Its principal argument against further taxes on alcohol is that the Government already imposes some of the highest excise rates on wine, spirits and beer in Europe.
Vintners’ groups are also concerned at the proposal against a background of falling sales, the result of a growing trend towards home consumption and the impact of the smoking ban.
However, the drinks industry can probably derive some comfort from the fact that the question of increasing taxes on the price of the pint is a highly sensitive issue in the current political climate.
The Government is already under pressure over its own contribution to high inflation levels in recent years.
The recent National Competitiveness Council (NCC) report highlighted how Ireland is already the most expensive country in the EU for food and drink, much to the concern of the tourism sector.
The NCC’s warning that further price rises could affect the competitiveness of the wider economy with the threat of large-scale job losses is certain to be factored into any Cabinet decision on the issue.
Ultimately, it is a decision that will largely reside with whoever replaces Charlie McCreevy as Finance Minister, as Mr Martin acknowledged yesterday.
However, the DIGI also needs to recognise that as a society we drink excessively, with the latest statistics on consumption revealing that we are a nation of binge drinkers.
A consequence of facing up to that harsh reality is the onus on the drinks industry to realise that overall consumption levels will have to fall if there is to be a reduction in the personal, economic and social consequences of alcohol abuse.
Attempts to provide cheaper non-alcoholic drinks in pubs have failed, although the DIGI claims their efforts in this area have been thwarted by competition law.
Although several other EU states have similar consumption levels to the Irish average of 13.5 litres of pure alcohol per annum, their drinking culture is radically different, with more consumption among our continental neighbours taking place at home, in family settings and at mealtimes, as opposed to the pub.
Few people could argue with Mr Martin’s observations yesterday that the core of Ireland’s alcohol-related problems stems from a “cultural indifference” to drink.
All interested parties need to wake up to the reality that when it comes to alcohol, we have reached saturation point in all senses of the meaning.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
