Duty rise may spur drinkers north
Cash-strapped families making the trip north for cheaper booze are unknowingly endangering some of the 100,000 full and part-time jobs in the drinks sector, the Alcohol Beverage Federation of Ireland (ABFI) said.
The group, representing drinks manufacturers and suppliers, claims there has been a significant increase in cross-border trade due to the significant difference in prices for alcohol products.
“This is a worrying situation from the point of view of both the industry and the Government. If consumers travel north for a better deal, we lose out on vital custom in difficult economic times. For the State, the loss in excise and VAT revenue has obvious implications,” said ABFI director Rosemary Garth.
Industry figures show that by travelling to the North, shoppers can save more than 30% on leading alcohol brands, including €9.50 (31%) on cognac, €8 (30%) on whiskey and €7 (31%) on vodka.
The drinks and suppliers group says research released yesterday proved that over the summer, as many as one in six households in the south crossed the border to shop.
Ms Garth added: “The northern off-trade sector is growing at a rate of 20%, mainly as a result of increased custom from the Republic. This compares with flat growth here in the south.
“The drinks industry makes a €2.2bn contribution to the Irish exchequer and supports the equivalent of 61,000 full-time jobs. The country must not do anything that further erodes our competitive position,” stressed Ms Garth.
