Tax levies fail to make any real difference
I am not attempting to mitigate the apparent increasing alcohol issue in this country, nor am I arguing the case on behalf of the drinks industry group, but it appears to me that some facts are being read out of their true context.
Firstly, there is a disproportionate tax levy on alcohol in Ireland when compared to most other EU countries, such as those mentioned in your article.
Here are some comparisons from my experience in Belgium last week.
One case of Stella Artois 24 x 33cl lager: 12.50 in Brussels, 44 in Ireland.
One 70cl bottle of Smirnoff vodka or Jameson whiskey: 11 in a Belgian supermarket, approximately 23 in Irish supermarkets.
With Irish prices anywhere between 200%-300% higher than in Belgium, one can deduce that tax does account for a very high proportion of the Irish figure. From experience this differential would also stand when comparing with French, Spanish, Italian and German retail prices. Staggering indeed!
Secondly, alcohol appears to be price-insensitive, as evidenced in the increasing volume consumption and unit sales each year. The only clear
beneficiary is the Government, through increased tax revenues This smacks of similar other tax policy practices, such as our unique tax levy on car purchases, the VRT, which is both indefensible and insulting to the consumer.
Yet in neither case do our extra out-of-pocket payments appear to be put to any greater good.
Higher prices will not curb spending on alcohol, and exactly what does the VRT-generated revenue cover? Hardly the State’s embarrassing road infrastructure.
Why, then, is it that our EU compatriots can enjoy a drink at a reasonable price, and at the same time do not appear to have the same detrimental societal consequences?
Why do we appear to pay more for less and accept it?
All this hints at the worryingly insular and myopic approach to many of our indigenous issues which begs for some clear vision and leadership. Our heads may well be in the sand, but if we are unclear on the facts of the matter, we are also blurred on what the actual issues and source of issues are. On that note I applaud, not necessarily endorse, the Health Minister’s policy on smoking. Like it or not, it does at least reflect a Government leader with clear long-term vision and the strength of his own convictions.
J Gallagher,
Roughgrove West,
Bandon,
Co Cork.
