Publicans say hikes put 2,000 jobs at risk

Publicans have warned the 10 cent increase in the cost of a pint of beer and measure of spirits will put up to 2,000 jobs at risk in the drinks sector this year.

Gerry Rafter, president of the Vintners’ Federation of Ireland said the increase would only serve to widen the disparity between the on-trade and off-trade along with encouraging the misuse of cheap alcohol being sold by supermarkets that sell alcohol as a “loss leader”.

“Since 2009, over 6,000 jobs have been lost in the industry,” he said. “We estimate this measure will put a further 2,000 jobs in jeopardy in the next 12 months.

“Most pubs are family- run businesses in towns and rural parts of Ireland, often where there is little other employment. These jobs needed protection. Instead, they got a wallop.”

Independent off-licences which compete with supermarkets for off-trade alcohol sales also expressed their disappointment, not only with the 10c increase in the cost of beer, cider and spirits but also the 50c increase in the cost of a bottle of wine.

The National Off-Licence Association (NOffLA), representing 315 independent off-licences, said it had witnessed 11 business closures and almost 60 job losses in the last eight months.

It claimed alcohol taxes are now among the highest in Europe.

“Prior to this budget, we already had the highest taxed for wine, the second highest for cider, third highest for spirits and the fourth highest for beer.

“As a result of Budget 2013, excise on wine is 576% above the EU average, 230% for beer and 280% for spirits,” said NOffLA chairwoman Evelyn Jones.

She pointed out the increase would mean a €2 hike in the cost of a bottle of spirits and 8c on a 500ml can of beer.

“Consider a standard €8 bottle of wine in Ireland. Over half of this price is attributable to tax (excise and VAT),” she said, adding that yesterday’s measures will increase excise on a 75cl bottle of wine by €0.40c bringing the total excise on a bottle to €3.17, or €3.90 including Vat.

Alcohol Action Ireland welcomed the price increases. However, it said large multiple retailers can still sell deeply discounted alcohol, such as “slabs” of cheap beer, as a draw to attract customers, absorbing the excise duty increases and off-setting it by increasing the prices of other goods.

Anti-tobacco campaigners were also under-whelmed by the 10c increase in the pack of 20 cigarettes and pro-rata increases in other tobacco products.

The Irish Cancer Society described the increase as “tokenism” as it was not “the sharp spike in price that is proven to discourage people from smoking”.

ASH said prices had been recognised by the World Health Organisation and others as the most important way of encouraging smokers to quit and discouraging young people from experimenting with tobacco.

Eoin Gavin, president of the Irish Road Hauliers Association, said while there remained an urgent need to overhaul commercial vehicle road tax “we are very pleased Minister Noonan heard the IRHA’s call to leave fuel duty untouched, as well as not increasing road tax until a review process is undertaken”.

Old reliables

*Pint of beer and cider and a measure of spirits — up 10c

*750ml bottle of wine — up 50c

*Pack of 20 cigarettes — up 10c (with pro-rata increases on other tobacco products)

*Petrol/diesel/heating fuel — no change