THE Competition Authority is expected to begin an immediate investigation into the beer market, amid Government disquiet about increases of up to 5p in pint prices by some Dublin publicans.
The authority is likely to decide at a meeting today to undertake a review of the beer trade "from the brewery to the tap", according to Government sources.
The Minister for Enterprise and Employment, Mr Bruton, is understood to be "extremely annoyed" about the price increase, particularly as the Government did not raise the excise duties on beer in last week's Budget.
A Government spokesman said Mr Bruton was opposed to reintroducing price controls, which were last used nine years ago to freeze beer prices.
Mr Bruton met the chairman of The Competition Authority, Mr Patrick McNutt, for 40 minutes last night. Today's meeting of the authority's four members follows claims by Mr Sean Kenny, a Dublin North East Labour TD, that some publicans were "trying to rack up the price of a pint because it was not touched by Ruairi Quinn's Budget".
The average price of a pint of Guinness has risen by more than 50 per cent in the past decade, from £1.34 to around £2.15. This is almost twice the rate of inflation.
The Licensed Vinters Association last night insisted its 600 members were not colluding in fixing prices. The increase was "by no means universal" and "they are not sitting in smoke filled rooms talking about the price of beer", the LVA chief executive, Mr Frank Fell, said.
He said a pint of Guinness cost between about £1.95 and £2.25 in Dublin pubs, averaging £2.03. He stressed that it was illegal for the association to fix or regulate beer prices. The LVA will meet Minister of State for Enterprise and Employment, Mr Pat Rabbitte, today.
In the past 10 years the share of the price of a pint of stout or ale which goes to publicans rose by 5 per cent to 39 per cent, while the Government's take has fallen by 8 per cent. On a £2.03 pint of beer publicans now take 79p, the Government levies 73p or 36 per cent in tax and the brewers take about 51p, or a quarter.