Alcohol on sale in shops and off-licences '70% more affordable than 20 years ago'

According to Alcohol Action Ireland, the 'on-trade' affordability of alcohol in Ireland has increased by 14% over the last two decades, while 'off-trade' alcohol has become 67% more affordable over the same period.

Alcohol on sale in shops and off-licences is almost 70% more affordable now than it was 20 years ago, according to a new analysis from Alcohol Action Ireland.

The report, compiled using data from the Central Statistics Office, found overall, alcohol prices here have “kept pace closely” with inflation.

However, the report did note a difference between “on-trade” establishments such as bars and restaurants, and “off trade” establishments like supermarkets, shops and off-licences

The analysis was based on an “affordability index”, calculated by noting the relative prices of alcohol compared to other goods, along with a measure of disposable household income over time.

According to Alcohol Action Ireland, the “on-trade” affordability of alcohol in Ireland has increased by 14% over the last two decades, while “off-trade” alcohol has become 67% more affordable over the same period.

The report also noted that, though alcohol duty rates are higher now than 20 years ago, their actual value has fallen considerably when adjusted for inflation.

“The figures in this report show that alcohol in Ireland has become more affordable in recent years, particularly in shops,” said Colin Angus of the University of Sheffield’s Sheffield Alcohol Research Group, which commissioned the report.

Citing a 2020 World Health Organization report which highlighted alcohol taxes as being a key tool for governments to reduce alcohol-related harm, Mr Angus said such taxes needed “to keep pace with inflation” to be effective.

“Alcohol duty rates haven’t changed since 2013 and recent high levels of inflation mean they are now 15% lower in real terms," he said.

Echoing Mr Angus’ remarks, Alcohol Action Ireland chief executive Dr Sheila Gilheany said alcohol was “still very affordable” in the off-trade sector, even with the implementation of minimum unit pricing for (MUP) in January of last year.

“In other jurisdictions, such as Australia, there is an automatic uprating of duties in line with inflation," she said.

"It is of note that the 2022 report from the Commission on Taxation and Welfare recommended that the link between the public health rationale and design of alcohol taxes should be strengthened.”

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Ms Gilheany also said the fact that 1,500 hospital beds were being used every day for alcohol-related illness, illustrated its “heavy burden on the health service”.

It is vital that the Government use all the policy measures at its disposal to address alcohol harm.

“The alcohol industry frequently decries the level of alcohol duties in Ireland, yet in reality alcohol costs Ireland at least €3.7bn annually while alcohol duties only raise around €1.2bn annually,” she said.

Alcohol was responsible for “incalculable suffering” in Ireland, Ms Gilheany added, leading to four deaths each day and impacting 200,000 children.

“It is more than time for the Government to have a ‘polluter pays principle’ and ensure that the alcohol industry pays for the harm caused by its products.”