A bar and nightclub owner in Co Wexford is planning to cut the price of a pint by 65 cents in the bar and €1.50 in the nightclub to make his premises one of the cheapest places to drink in Ireland.
Mr Francis Dooley, of DB's bar and the Beacon nightclub in Courtown, said he will cut the price of well-known lager brands to €2.90, and the price of a pint of Guinness to €2.80 from this Friday.
He denied yesterday the cut in drink prices was irresponsible and said he was "reacting to market demands".
He will still be enjoying a mark-up of 60 cent on each pint with the new prices, before operating costs are taken into account.
The price cut will be permanent according to Mr Dooley who said he had decided to take the action because of a dramatic fall off in numbers going out to pubs, due to high prices and the smoking ban.
His business, in Courtown, a popular holiday destination, saw a large drop this summer, as people chose to avoid the pubs in favour of barbecues at their caravans.
Mr Dooley came to prominence earlier this year after gardaí attempted to prosecute him under the 9 p.m. pub watershed rule for holding alcohol-free teenage discos in his nightclub.
The case was dismissed on a technicality, and Mr Dooley continued to hold the events, pointing out the opinion of the Minister for Justice, Mr McDowell, that such events were not illegal.
On normal nights he charges €3.45 for a pint of Guinness in the bar, and €4.30 in the nightclub.
From Friday he will introduce a flat price of €2.80 in both venues. Lager prices will be cut from €3.75 and €4.30 to €2.90, while spirit measures will be reduced by up to €1.95.
Soft drink prices will also be reduced from €2.20 to €1.50 a bottle.
His prices will be significantly lower than the average price of a pint of stout in Ireland, which is now estimated to be in the region of €3.60.
According to the Central Statistics Office, the average price of a pint was €3.41 as of September last year.
Since then the price of a pint of Guinness rose by at least 15 cent in most pubs, when earlier this year Diageo, the parent company of Guinness and manufacturer of other beer brands, including Carlsberg, introduced a price rise.
According to CSO figures, in the five years to 2003, the average price of a pint of stout rose by 28 per cent from an average of €2.65.
There has been a significant decline in drink sales in pubs, with Diageo reporting a 6 per cent drop in its sales to pubs and bars.
According to Mr Dooley, the real downturn is much more marked. "The drop in sales is between 30 and 40 per cent. What's happening is that people are just not coming out.
"Instead of going to the pub they are buying their cans from supermarkets and off-licences and drinking at home.
"We've got to react to what's going on. I'm trying to entice people back into pubs," Mr Dooley added.