God be with the days when news that the price of a pint was to go up would cause punters to growl and politicians to howl abuse about profiteering.Yesterday Guinness United Distillers and Vintners (UDV) announced that a six cent increase will apply from March 1st to pints of Guinness, Smithwicks, Harp, Carlsberg and Budweiser.
They say it amounts to a 4.5 per cent increase on the wholesale price of these products - substantially more than the current rate of inflation, announced yesterday as a (declining) 1.8 per cent per annum. It is impossible to give a precise figure on the retail side because of the wide price differences applying in pubs around the country and in Dublin.
The Consumers' Association of Ireland made a tame plea yesterday for publicans to absorb the increase, given their huge profit margins on items such as soft drinks - tame because in the same breath Mr Dermott Jewell, its chief executive, said "no doubt publicans will pass on the full amount to their consumers". God be with the days, too - and not so long ago (July 2000) - that Mr Tom Kitt imposed a six month price freeze on certain alcoholic products. In the previous year the Competition Authority recommended to the Tánaiste, Ms Harney, at the Department of Enterprise, Trade and Employment that real competition needed to be introduced in such a highly regulated industry. Barriers ought to be removed restricting entry to the pub market, especially in Dublin, where prices were up to 12 per cent higher than elsewhere.
The recommendations were ignored, as legislation was introduced to extend pub opening hours (a decision that has since been watered down). In the meantime we have become more aware of Ireland's chronic alcohol problem. The State has moved from 12th to 2nd place in the world rankings for alcohol consumption. The Minister for Health, Mr Martin, took the initiative by calling on the general public to face up to these problems. He has had the bottle to confront the Vintners' Federation of Ireland on the smoking ban, the first minister to do so.
The price of a pint is still an indicator of overall inflation and taken seriously by many in everyday life. Our report shows a variance of €3.10 to €4.20 depending on location, a staggering difference by any measure. But all these establishments may be charging at least an extra six cent from next month. People have become more aware of price profiteering as the rate of economic growth has come down. Tourism out of Ireland and into it has broadened that awareness. Irish people certainly need to confront their excessive levels of alcohol consumption, but they could also, with benefit, resurrect an older tradition of militancy about the price of the pint.