Off-licence body warns of outlet closures

The body representing independent off-licences In Ireland is seeking a meeting with Government to address what it says is a "critical situation" in the sector due to declining incomes.

The National Off-Licence Association (Noffla), which represents over 350 independent off-licences, today accused the Government of being hypocritical and of abandoning its members.

The organisation is seeking an urgent meeting with Government to outline its concerns, citing cross-Border shopping due to lower Vat rates and the strength of the euro as key factors in the current crisis facing its members.

According to the association, its members are feeling the pinch as turnover falls an estimated 40 per cent, despite the run-up to Christmas being traditionally a peak season.

It warned that many specialist retailers were in danger of going out of business as a result.

"We are not bankers, we are not looking to be bailed out, we are not in a mess because of any factors of our own making, we are merely victims of bad government," chairman of Noffla Jim McCabe said.

"The Minister for Finance has chosen to bury his head in the sand on this issue, apparently on the premise that market forces should be allowed to prevail. This is hypocritical in the context that the Government is directly interfering in market forces through enforcing disproportionate levels of taxation on consumers in the Republic, while our fellow islanders enjoy an unprecedented taxation advantage."

"This is not an EU competition issue; this is a common sense issue that should be addressed immediately. Businesses are about to go to the wall. Hundreds of workers are about to join the growing dole queue," added Mr McCabe.

The lobby group also criticised the Government over its failure to introduce the promised code of practice designed to curb alcohol abuse, aimed at mixed retailers who sell alcohol such as discount stores, petrol stations and large grocery chains. The code was due to come into effect on December 1st.

"Banning irresponsible promotion of bulk purchasing of cheap alcohol and ensuring a responsible sales environment were key parts of the Government Alcohol Advisory Group recommendations. However what we are now witnessing is a situation whereby instead of reacting to the huge numbers of shoppers heading north to stock up with more alcohol than they would ever have consumed in the past, the same Minister Lenihan is sitting on the fence," said Mr McCabe.

The group is calling for a ban on below cost selling in the republic, and the removal of what its described as "hugely disproportionate price differentials" between the North and South.