THE DRINKS industry has warned the Government against imposing new taxes or restrictions on alcohol because of the pressures facing the sector.
About 15,000 jobs have been lost in the industry in the last year and a half as consumption of alcohol dropped to levels last seen in the mid-1990s, according to a report published yesterday.
The past two years have been the worst in living memory for the industry, the report published by the Drinks Industry Group of Ireland (Digi) states. The trade fell almost 9 per cent last year on top of a 5.9 per cent fall in 2008.
However, Prof Joe Barry of TCD’s public health department accused the drinks industry of trying to put “the frighteners” on Government with its gloomy assessments.
“The drinks industry is run by a group of wealthy multinationals who make huge profits from selling a harmful product. Small rural pubs might be suffering but the big producers and retailers are doing fine – and causing lots of harm with the drink they sell.”
Launching the report, Digi chairman Kieran Tobin said the fall in sales was caused by the weakness of the national economy and ongoing cross-Border purchasing of alcohol. “Against this backdrop, it is difficult to be optimistic about the immediate prospects for the drinks industry,” he said.
Per capita consumption is down one-fifth since 2001, although exports of Irish drinks are holding up.
Mr Tobin described last year as an annus horribilisfor the industry but added that the 20 per cent cut in excise rates in the December budget was a "crucial first step" in restoring confidence.
All drinks categories are in decline, according to report author, Anthony Foley. Cider consumption fell 5.9 per cent last year, beer declined 6.5 per cent and wine was down 6.9 per cent. The market for spirits collapsed, with a 18.5 per cent fall.
Pub sales were down 11 per cent, while off-licences held the decrease to 6 per cent. Digi is predicting a further 5 per cent fall in volume sales this year, with a knock-on effect for jobs.