One in every €3 spent on drink goes to Govt

One in every €3 spent by Irish people on alcohol goes into the Government’s pocket, the drinks industry claimed today.

It says high taxes and changing drinking habits are crippling the traditional pub, with one calling a final last orders now every day.

The Drinks Industry Group of Ireland (DIGI) also criticised what it branded staggeringly high rates of tax compared to the rest of Europe.

Tax on beer is 10 time higher than it is in Germany, tax on spirits is 4.7 times the rate in Spain while wine has the highest excise rate in the EU, it said.

In a report on the state of the industry, DIGI also said the Irish tax regime that is failing to support home-grown manufacturing industries.

More than €2.2bn was paid on taxes on alcoholic drinks last year, according to the study.

The future of the rural pub is under threat with 54% of pubs having sales of €200,000 or less, according to the report’s author Tony Foley of Dublin City University.

More people are buying alcohol from off licences and staying at home to drink creating further misery for the pub trade, he said.

The industry employs almost 62,000 people but the number of manufacturing jobs has fallen considerably.

Padraig Cribben, CEO of the Vintners Federation of Ireland (VFI) said that although the trend of pubs outside Dublin shutting up shop was continuing, it had slowed down.

“Many publicans are under enormous pressure,” he said.

"Some costs, such as water for example, have trebled in three years.

“One publican who paid €6,000 for water charges in 2006 was charged almost €18,000 in 2008.”

People are drinking 5% less than in 2001 when alcohol consumption peaked, the report shows.

The volume of alcohol produced in Ireland which is consumed here fell by 22% since 2000, however the amount of drinks produced abroad but consumed here is up 90%.