Publicans told to drop pint price rise - or else

PUBLICANS have been warned that beer prices will be fixed at last year's levels if they do not immediately reverse the latest five pence increase in the cost of a pint of beer.

The Minister of State for Enterprise and Employment, Mr Pat Rabbitte, said after a meeting with the Licensed Vintners Association (LVA) yesterday that if prices did not drop straight away, he would make a price-fixing Order retrospective to November 1996.

A joint statement issued later by Mr Rabbitte and the LVA said a "minority of Dublin publicans had taken a price increase over the last two months and this number has been rising over the last week".

They called "on these publicans" to bring their prices back to those of early last November. The Taoiseach, Mr Bruton, was described by Government sources as being "apoplectic" about the increased prices. Mr Bruton had told the Dail that price increases were not justified, and he warned that "concerted" price fixing or "cartels" were a serious breach of the law.

Later he had a lengthy discussion with the Minister for Justice, Mrs Owen, about the issue. The Government is considering the possibility of tightening licensing legislation.

The Minister for Enterprise and Employment, Mr Bruton, welcomed the announcement last night of an investigation of the drinks market by the Competition Authority. The LVA has insisted that its 600 members were not involved in price fixing. Its chief executive, Mr Frank Fell, told Mr Rabbitte that it had recommended price restraint at recent meetings.

Surprise has however been expressed at the reaction generated by the price increases. One Government source said the issue had become a "feeding frenzy". It was sparked off by a Labour TD for Dublin North East, Mr Sean Kenny, who had received complaints from his constituents after two Raheny pubs increased the price of a pint by five pence.

A barman at one of the pubs the Concorde Lounge, said the price would remain the same for the moment because it was fixed on the registers. "I don't know what's going to happen tomorrow, though." A barman at Edenmore House said: "The price will probably go down again if it has to."

Meanwhile Mandate, the union which represents 3,000 bar staff in the Dublin area, has called for the reintroduction of price controls. Mr Jim Moloney was particularly critical of pubs in the Temple Bar area and said that "in pubs where labour is cheapest the pint is dearest". In one city centre pub he said the price of all drinks increased by £1 after 11 p.m.