THE Competition Authority's new inquiry into the retail drinks trade will focus on pub licensing laws, which are a "barrier to entry" to the market, according to its chairman.
The authority's investigation was announced last week amid Government anger over two price rises of 5p in the cost of a pint of beer in some Dublin pubs over the past two months.
The Minister of State for Enterprise and Employment, Mr Pat Rabbitte, has threatened to freeze beer prices at last year's levels if publicans do not reverse the price increases.
The Licensed Vinters' Association (LVA), which represents 600 pub owners in Dublin, has issued a circular advising its members of the request for price cuts. The LVA will hold a special general meeting in the Burlington Hotel today to discuss the issue.
Mr Rabbitte said he was "aware that some pubs have brought back their prices and some pubs have not yet done. I do not wish to intrude into how a trade association does its business, but I believe that the agreement I entered into with the LVA will be endorsed by the members at their meeting"
The chairman of the Competition Authority, Prof Patrick McNutt, said the inquiry will examine how restrictive licensing laws are a "major contributory factor to what's going on in the market".
Prof McNutt said he could not comment on recent claims that some publicans were colluding in fixing prices or operating cartels.
The Competition Authority can investigate allegations of anti-competitive behaviour such as price-fixing or cartels. It can take civil or criminal court proceedings, for breaches of the Competition (Amendment) Act.
The Progressive Democrats' finance spokesman, Mr Michael McDowell, has linked increases in beer prices with the shortage of pubs due to "overly restrictive" licensing regulations.
While increases in the number of people at work and the growth in tourism are leading to an increase in demand for pubs, the number of licensed premises is not growing, he said.
The office of the Revenue Commissioners, which issues public licences, said it is compiling statistics on the number of licences in Co Dublin. Figures will be available by the end of the week, said a spokesman.