Dublin publicans agree to reverse drink price rise

DUBLIN publicans last night agreed to reverse increases of up to 5p a pint in an attempt to avoid a Government enforced price…

DUBLIN publicans last night agreed to reverse increases of up to 5p a pint in an attempt to avoid a Government enforced price freeze.

The unanimous decision by members of the Licensed Vintners Association was immediately welcomed by the Minister of State for Enterprise and Employment, Mr Pat Rabbitte.

The decision will affect any price increases on stout, ale, lager, as well as whiskey, gin and vodka, in Dublin pubs.

More than 300 pub owners - representing about half the ownership of the city's pubs - attended the meeting at the Burlington Hotel.

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The resolution by members was: "That all members of the LVA who have not already done so bring back their drink prices to the level ruling at the beginning of November 1996 in order to avoid the imminent imposition of a price freeze order."

Mr Rabbitte said in a statement last night: "I welcome the decision today by the Dublin vintners to endorse the agreement I entered into last Thursday with the licensed vintners to restore pub prices at their early November levels."

After the meeting, Mr Frank Fell, LVA chief executive, said the imposition of a freeze on drink prices would have been catastrophic for the trade. Members had been warned during the meeting that any such move could have remained in place for some considerable time.

"I don't think there was a single person in the room who still opposed the wind back taking place. If you look at the result, I think the Minister has to be happy," he said.

"It was a minority that went ahead with the increase. I think that before today's meeting there was only 3 or 4 per cent who had not taken their prices back down."

Mr Fell accepted there was a "very wide structure" to the price of a pint in Dublin, most notably in the city centre. Prices were lower in suburban areas and overall there was a difference of up to 30p. Among the pubs which put up their prices were those charging considerably less for a pint generally.

He did not believe pubs had colluded in increasing the price. The LVA which represents 600 pub owners in Dublin - would arrange a meeting with the Competition Authority over pricing issues, he said.

One publican who did not wish to be named estimated that no more than 15 per cent of publicans had put up their prices. The issue had been "blown out of all proportion by the media".

The four member Competition Authority, meanwhile, has begun a detailed inquiry into the retail drinks trade, which will focus on pub licensing laws. These restrictions amount to a "barrier of entry" to the market, according to its chairman, Prof Patrick McNutt.

The inquiry was likely to take several months he said yesterday.