New rules may have minor impact on drink prices

Drinks industry has power to cut prices if it cuts alcohol strength

People who buy alcohol in off-licences and drink it within safe levels will pay just 30 cents more a week under legislation to impose a minimum price per unit, the Seanad has heard. Independent Senator Jillian van Turnhout said the increase would cost €15.70 in a full year.

A can of beer with 5 per cent of alcohol by volume will be a minimum of €1.97, while a bottle of 12.5 per cent wine will cost €7.40. The minimum for a 40 per cent volume bottle of whiskey will be €22.09.

The changes would not affect people drinking in pubs, clubs and restaurants, but people drinking cheap high-strength alcohol from supermarkets and other retailers would notice because “this is what causes the most deaths, injuries, accidents and incidents”. She said alcohol strength in wine and beer had increased greatly in recent years and if the industry reduced the strength of alcohol, “we will not see price increases”.

The Taoiseach’s nominee also expressed concern that the Department of Education might allow the drinks industry into schools with its education programme to target young people parents and teachers.

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“This is completely inappropriate,” she said, comparing it to tobacco. “Who would entertain the idea of an education programme about the dangers of smoking being designed and delivered by an organisation that is funded by tobacco companies?”

Ms Van Turnhout was speaking during the Seanad debate on the Public Health (Alcohol) Bill introduced by Minister for Health Leo Varadkar.

The Bill will make it illegal to sell alcohol below a minimum price of 10 cent per gram of alcohol and will introduce health labelling on drink products. It will also regulate advertising and sponsorship and create structural separation of alcohol products in shops.

Mr Varadkar said the majority who drank in Ireland, some 75 per cent of the population, did so in a harmful way and consumption was in the top five among EU states. At least 83 people died every month of 2011 of alcohol-related disease, he said.

Independent Senator Seán Barrett said the legislation would merely change retailing. He said a study by Sheffield University showed that with minimum unit pricing, exchequer revenue would be reduced by €34.4 million and retailers would gain €69 million in the off-licence trade and €9.3 million in the pub trade.

“I did not come to this House to make off-licence traders €69 million better off and pub-owners €9.3 million better off or to take €34.4 million from the Exchequer. However Mr Varadkar said the aim was to reduce alcohol consumption and if that happened, there would be no increase in income for the pub trade or off-licences.

Sinn Féin Senator David Cullinane believed a better way to reduce consumption would be to increase excise duty.

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times