Health experts criticise move not to raise excise on alcohol

THE Government’s decision not to increase excise duty on alcohol has been strongly criticised by health experts, but welcomed by the alcohol industry.

Experts welcomed the announcement by Finance Minister Michael Noonan that Junior Health Minister Roisín Shortall would “legislate” next year to deal with the sale of cheap alcohol in supermarkets and off-licences.

However, Alcohol Action Ireland (AAI) branded the decision on excise duty as “incomprehensible”.

It said excise duty on alcohol was cut by 20% in 2010 and if the Government had restored the rate, it would have brought in €178 million — enough to cover the cuts to lone parents, fuel allowance, disability services and student fees combined.

AAI director Fiona Ryan said: “Alcohol is a luxury good but it remains at the same slashed level despite the Central Statistics Office telling us that alcohol prices continue to drop while other prices go up.

“Consumption figures are inextricably linked with pricing and when you have high levels of consumption, you have high levels of alcohol-related harm. We are currently paying an estimated €3.7 billion a year in alcohol-related harm.”

Leading expert Professor Joe Barry, who sits on the Government’s national substance misuse strategy, said excise should have been increased.

“The minister said they were bringing in legislation on minimum pricing and that is welcome, but it has not happened yet. It’s a missed opportunity not to bring excise in now.”

He said raising excise duty would reduce consumption and added: “It has been asked for by the health industry, but obviously the lobbying by the alcohol industry was stronger. They are entitled to lobby, but I would like the Government to make the decision based on the public health interest.”

In a statement, the Vintners’ Federation of Ireland, welcomed the decision on excise, but said the 2% hike in VAT was “unhelpful” and would act as a “dampener on spending” and threaten jobs. It said it “warmly welcomed” the commitment that legislation would be introduced to deal with the sale of cheap alcohol.

Kathyrn D’Arcy of the Alcohol Beverage Federation of Ireland said it was unclear if the minister meant there would be legislation on minimum pricing or below-cost selling. She said her group favoured below-cost selling but it believed there were legal issues around minimum pricing.