'Mixed' budget for country's publicans

The Vintners' Federation of Ireland has described Budget 2012 as 'mixed', welcoming upcoming legislation on the sale of cheap alcohol but criticising the 2% VAT increase.

President Padraig Cribben said the Federation "warmly welcomed" the commitment that legislation will be introduced in 2012 to address the sale of cheap alcohol in supermarkets.

"This would go a long way in addressing the issue of irresponsible advertising, merchandising and promotion of alcohol by supermarkets," Mr Cribben said.

However he said the 2% VAT increase was "unhelpful" for the pub trade which is experiencing extremely difficult times.

While he welcomed the decision not to impose any increases on excise duties on alcohol, Mr Cribben said the VAT increase will act as a dampener on spending and will threaten jobs in the total retail sector.

"The route to recovery is to stimulate the domestic economy, not to further depress it," he said.

"2011 was a very difficult year for the pub trade with a loss of 5,000 jobs.

"We still anticipate further closures in 2012 with additional further job losses."