Failure to tackle drink and petrol costs criticised

CIGARETTES went up by 30 cent per packet of 20 from midnight last night, but the cost of the other so-called old reliables, alcohol and petrol, have drawn criticism despite the fact they remain unchanged.

Studies into the possible benefit of decreasing the price of alcohol were urged yesterday by Finance Minister Brian Cowen who may cut levies on low-alcohol beverages to promote health.

“It has been suggested to me there might be public health benefits from a switch to lower alcohol beverages. This will require some study, and indeed some adjustments by industry. I am giving notice now that I intend to bring forward measures in this area in my next budget,” said Mr Cowen.

The Irish Cancer Society expressed its disappointment with the budget measure “which only adjusts for inflation and is not a significant increase in excess of inflation”.

John McCormack, chief executive of the Irish Cancer Society said: “Today’s announcement verifies the decision that the Government has lost its way in terms of trying to protect young people by allowing the tobacco industry free access to them. This decision represents a complete failure by this Government to protect the health of our population and is facilitating a direct resurgence in smoking levels especially in women, people aged 15-18 years and 19-35 years.”

However, the Office of Tobacco Control (OTC) welcomed the increase.

Éamonn Rossi, chief executive of OTC said: “International evidence shows the single most effective means of addressing tobacco consumption is through significant price increases. Our research shows 16% — one in six — of those aged under-18 years are smoking.”

While Mr Rossi acknowledged price increases alone will not solve the tobacco epidemic, he said such increases are the single most important instrument available to government in its fight against tobacco.

While the cost of alcohol remains unchanged, the Vintners’ Federation of Ireland expressed disappointment at the failure to reduce the “extremely high excise duties on alcohol”.

Paul Stevenson, VFI president, said: “Our excise duties are extortionate compared with our EU neighbours. Excise duty on beer is ten times that of Germany, seven times higher than France while tax on spirits is five times greater than Italy.”

While the price of diesel and petrol remains unchanged, the president of the Irish Road Haulage Association described the budget to be a lost opportunity for hauliers.

Jimmy Quinn, president of the IRHA, said: “In light of crippling energy costs witnessed over the past 12 months, today’s budget is a lost opportunity not to give some small measure of release back to the transport sector to the value of six cents a litre. The budget provides little or nothing to our members.”