Cost of alcohol to rise as minister seeks approval for minimum pricing

The Public Health (Alcohol) Act specifies a minimum price per gram of alcohol of 10c, sparking fears retailers in border counties will lose out as consumers flock to the North, which has delayed minimum pricing legislation

Health Minister Stephen Donnelly will seek Government approval on Tuesday for the proposed implementation of minimum pricing for alcohol.

Health Minister Stephen Donnelly will seek Government approval on Tuesday for the proposed implementation of minimum pricing for alcohol – a move that would increase the price of a bottle of vodka by up to €7. 

The Public Health (Alcohol) Act specifies a minimum price per gram of alcohol of 10c, with the minister keen to have the scheme implemented in the coming months.

Under the scheme, a 440ml can of lager will have a minimum price of €1.32, a 750ml bottle of chardonnay will have a minimum price of €7.75 and a 700ml bottle of gin or vodka will have a minimum price of €20.71.

Some supermarkets have their own-brand vodka currently priced at about €12.99, meaning a jump of over €7 to meet the minimum pricing laws. 

Northern Ireland

The decision to move forward with the initiative is being done without a similar regime in place in Northern Ireland, sparking concerns that purchases of alcohol and other groceries by residents of the Republic in off-licences in Northern Ireland will result in retailers in border towns losing out.

In February this year, Northern Ireland's Health Minister Robin Swann said he would not enact minimum pricing in Northern Ireland during the current Assembly and Executive, meaning it would likely be at least 2023 before the legislation is enacted in Northern Ireland.

It is understood Mr Donnelly wishes to introduce minimum unit pricing as soon as possible in order to "reduce the health harms of alcohol" by preventing the sale of strong alcohol products at very low prices. Picture:Gareth Chaney/Collins

Border county TDs from both Fianna Fáil and Fine Gael have objected to the move here and say for the initiative to work effectively, it must be done on an all-island basis.

Patricia Callan, director of Drinks Ireland, warned the price difference between north and south will increase from an average of 27% to as high as 38%.

It is understood Mr Donnelly wishes to introduce minimum unit pricing as soon as possible in order to "reduce the health harms of alcohol" by preventing the sale of strong alcohol products at very low prices.

The minister is expected to tell colleagues that the availability of "cheap, strong alcohol products also makes it more likely that they are affordable for children and young people".

Provisional figures from the Revenue Commissioners show that alcohol consumption levels were at 10.07 litres per person in 2020, representing only a 6.6% decrease from the 10.86 litres level of consumption in 2019, despite the closures of pubs and restaurants during the pandemic.

Alcohol consumption

Alcohol consumption has remained at about 11 litres per capita since 2015, equal to 41 bottles of vodka per person per year, or 116 bottles of wine, or 445 pints of 4.3% strength beer per adult per year.

At current prices, it is possible for a man to consume his weekly low-risk guideline limit of alcohol for €7.48 while a woman can consume her weekly limit for just €4.84.

An application of the 10c minimum price per gram shows that it will affect only the cheapest of products and will not affect the price of products sold in pubs or restaurants.

The Government had looked to Scotland for inspiration, which implemented minimum unit pricing at a rate of 50 pence per unit (8 grams of alcohol) in 2018.

Public Health Scotland estimated the net effect was a 3.5% reduction in off-trade sales per adult after the first year.