THE Competition Authority is expected to order an investigation into the pub licensing system, following this week's controversy over a pint price rise by some Dublin pubs.
The authority will meet next week to decide the scope of the investigation and advertise for submissions. Pub licences are granted under laws dating from the early 1900s. Licences are issued in proportion to centres of population, based on census figures more than 90 years old.
It is believed that the issue was one of the main topics raised by the Minister for Enterprise and Employment, Mr Bruton, with the Competition Authority this week.
The pint war has been described as a "Dublin issue" by representatives of rural pubs. Publicans generally increase prices at the end of every year.
Dublin has around 700 pubs for its population of a million, while the rest of the population is served by 9,000 pubs. "If you want to go to a rural local you have a lot more options," a Vintners Federation of Ireland spokeswoman said.
She did not think rural publicans would raise prices. "If they did they would just be playing catch up, because prices are so much lower anyway."
An economic study by Dr John Fingleton of Trinity College this week found that beer production was controlled by three large firms. He found the price of stout in pubs had increased by 16 per cent in real terms since 1986. And he estimated that weak competition in the beer market was costing consumers around 40p a pint.
On Thursday the Minister of State for Commerce, Mr Pat Rabbitte, met the Licensed Vintners Association, which promised to call on members to reverse recent increases.
Mr Rabbitte threatened to freeze prices at November 1996 levels unless they were brought back to this level.
