Cider industry in talks with officials over 21p increase

Cider industry representatives met Department of Finance officials last night to discuss the Budget increase in excise duty on cider of 21p a pint.

A spokesman for Bulmers said job losses would be "inevitable" unless the decision was reversed. The cider company employs 500 people in Clonmel, Co Tipperary.

Earlier yesterday Mr Brendan McGuinness, the managing director of Bulmers, said he was "amazed" by the decision which had come without any warning.

The move was aimed at bringing cider tax in line with tax on beer.

However, Mr McGuinness said cider was taxed at a lower rate than beer in most countries because cider was a labour-intensive business.

Cider was treated as a "special case" in all European countries, he added, and in some of them it was not taxed at all.

Speaking to RT╔ Radio he said he was "extremely concerned" about job losses in Clonmel.

Bulmers has said it would not be passing on the 21p increase to its customers pending consultations with the Government.