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PROPOSED TAX HIKES on alcohol have been strongly opposed by the National Off-Licence Association, which said it would put the independent off-licence sector out of business overnight.
But the Vintners’ Federation of Ireland (VFI) and Licensed Vintners’ Association (LVA) have said that their proposal for a ‘Lid Levy’ could raise €240m for the exchequer.
The proposal was published with the assistance of leading legal consultants Arthur Cox and Anthony Foley of Dublin City University Business School.
Lid Levy
The groups are proposing a 15 per cent ‘Lid Levy’ on all unopened alcohol products sold in the off-trade, saying it would help to address the issue of the availability of cheap alcohol in supermarkets. They also say it is in line with government thinking on the matter and reflects the recommendations of the Steering Group Report on a National Substance Misuse Strategy.
Donall O’Keeffe, chief executive of the LVA said:
Publicans fully appreciate the difficult economic position the government finds itself in. However, an increase in excise would be disastrous and would put further pressure on already hard pressed publicans. The employment intensive on-trade sector is already suffering major declines, pub closures and job losses on an unprecedented scale.
The groups said that 90 per cent of pubs are family owned and employ 50,000 people, and that these jobs are at risk, with over 5,000 jobs lost in the last three years alone.
Strongly opposed
Speaking today, Evelyn Jones, Chairperson of NOffLA said:
NOffLA is strongly opposed to any additional taxes being imposed on the independent off-licence sector and this includes the publicans pre-budget proposal issued today. This move would put the independent off-licence sector, which is already a fragile and vulnerable sector out of business overnight. There is absolutely no way that the independent sector could sustain this tax.
She said there has been a significant shift in alcohol sales to the off-trade, but “this has not been to the benefit of the independent off-licence sector. In four years, we have lost almost 3,000 jobs in this sector and witnessed 75 business closures”.
Jones added that they expect over twenty more to close next year and that the tax “would certainly speed up the process next year”.
In NOffLA’s pre-budget submission, it called for retention of the current level of alcohol excise duty, a scaling of off-trade licencing fees based on turnover and an introduction of a ban on below cost selling.
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So publicans want a 15% increase on sales in off-licenses?would this be an attempt to have the competition put out of business mmm….?
heard mine telling a man.today it will.stop teenagers from drinking on the streets this is pub owner who charges 4.45 a pint of Guinness
That’s so true Norman. The owners of the golden geese have been left scratching their heads, ever since the unappreciated geese up sticks and left for pastures new. Rather that trying to entice them back, they have resorted to attacking the silver and bronze geese. By that I mean the good value alternatives, available in supermarkets. Until publicans realise that profits of three, four or five hundred per cent are unacceptable, then nothing will change.
Home brew and cross border shopping…
shops on the north are only hoping for the annual tax hike on alcohol…
or for spirits at least crack the seal as their selling it ;)
Tesco value vodka ;)
A litre of captain Morgan in my local Tesco at the moment is €20, three whole limes €0.79, two litres of ginger for mixers €0.75 each total cost €22.29 for 28 standard drinks,nPrice in my local pub for a captain morgan and ginger €7.50 = €210???nWhy don’t people go to the pub more often?
Well down here in west cork captain and ginger ale is 5.05 5 euro for cash all the ice limes u want and friendly staff roaring fire and wel even wash the glass after you , n probly provide music to you free of charge , u cnt say that’s bad value
This is all propaganda and spin. Same rubbish every year now. Week before the budget start all these rumours about this being cut that being taxed blah blah blah. When the budget comes around the government will only go with half of what was proposed so the good sheep of Ireland can go to bed at night thinking “ah sure it wasn’t as bad as i thought”. “It could of been worse”. Wake up FFS.
So are you saying nothing worries you when it’s up for consideration in the budget or only worry about the half that you alone know will definitely get a tax increase or a cut applied to it!?! I fail to see why people worrying about issues in the budget warrants them being labelled sheep!
that’s not what he said. every year they have this pre budget scare mongering so when the budget comes out we go “hey that wasn’t as bad as they said it would be” and we except it but the bottom line is we’ve still been screwed. this government like the last is hitting the easy options and costing jobs rather then creating them. Gilmore even boasted it the Dail about the jobs created this year yet over 40% of the positions have or will be filled by imported labour. Don’t read too much into the pre budget hype but be more aware of how much more they will try and squeeze from your pocket
Does the LVA think this lobbying will encourage people back to pubs? Publicans have lost that battle, especially in Dublin, where they priced themselves out of the market. The smoking ban did not help their cause either. Drinking habits have changed and it will be impossible to revive the pub culture that existed during the boom years. If the price of alcohol is increased for off-licences and supermarkets, people will just stock up in the North and perhaps smuggling will become a feature. No improvement for pubs, job losses in the off-trade and opportunities for criminals. Not even a zero sum game.
The smoking ban has not ruined pubs. Such bullshit. If anything it made it better. All you have to do is step outside the door or a beer garden.
if you open your bottle of vodka before the till ,do you still pay the tax
How about a level of 10% on pub sales to cover the cost of hospital care and Garda when to pubs kick everyone out at the same time ?
as the dail is full of publicans this suggestion will probably be acted on.
Some government we have… Trying to force us back to the pubs! Can’t be having us at home enjoying our few reasonably priced drinks!!
its worse than that, they’re trying to keep us off any booze at all. Drinking at home will still be cheaper unless you live outside Dublin or can drink during the day.
Peter, this is the future for Ireland if Kenny remains in office.
Its sickening hearing the vintners lobby on the radio this past week pretending they care about responsible drinking and peoples health!! Who do they think they are fooling!!?!
They are the one sector whom ive personally no sympathy for during the recession. They increased their prices hanf over fist during the ‘celtic cod’ era ripped us all off with their €2.80 for a small mixer coke bottles.
Like all business sectors, it is they who need to become more competitive, not cry that their competitors should be made increase their prices!! I thought we lived in a ‘free’ market!!
Bootleggin with the Dukes of Saggart .
Stock Up!
Rediculous 10pm closing time doesn’t help
What’s next? I mean how desperate are the government for tax money, dear god.
next is a tax on food eaten at home at cheap prices cause the restaurants can’t compete with the prices they charge for their food .
nope they will make booze to expensive then it’s a sugar tax on soft drinks ,and then water rates
Let’s just have a air tax as it’s always used as a joke but that’s the territory we are in now really, if we are honest..
Ireland, the gathering, come and get screwed 6 ways from Tuesday.
Or having to list every calories in every ingredient Dave?
Sugar tax and water rates, maybe tax on yeast too… God how are we gona be able to afford to make the Moonshine next.
offlience trade makes a profit of 30% not even ,i think the goverment should take a drastic cut in the own wages instead ..and not let the middle class lose more jobs…. more offliences will close …
Actually the Independent Off licence trade generally makes a gross profit of 15-20%, after wages, rent, rates etc most are lucky to make a net profit of 1.5%. Think about that, in order to make a net profit of €30,000 a weekly turnover of €38,500 is required. It is not the lucrative business that many think. Where as a publican turning over a similar amount would make a net profit of approx €300,000.
I still prefer a night. out in the pub having the craic to sitting at home on the couch swilling crappy canned beer and watching the same ole stuff on the tv. its cheaper but its miserable in comparison.
interesting it was d “poor” publician that call for the price increase on off sales
It’s an alright idea, But needs to be implemented better. How about publicans meet us half way, A 8% increase in of licence charges, and an 8% reduction in pub charges. Meaning pubs would have drink 8% less, and it would be 8% dearer in shops. We need to try and protect the jobs in both sectors, People don’t go to the pub just because the price of drink in the off license in cheap, it’s also because the price in the pub is expensive. Meet each half way and everyone is happy! There are far better ways of getting money then taxing alcohol anyway, But thats for another discussion! #legaliseIE
Nanny state. Vintners self interest,after all that we are going to be hit with in the budget the few cans I buy in the off license is all that’s left.
Worst drug in the country. Responsable for a large proportion of crime, domestic violence, injuries and health problems. Tax it off the market for all I care.
As for the publicans? They’ve brought it all on themselves with greed.
Are you sure you’re not really Michael Noonan
Nonsense. It does not matter what they say they will demonize and distort and blame regardless. I say let it all increase, everyone gets nailed and everyone will finally feel the reality of Kenny’s taxing madness. Will it hurt, heck yes but at least we don’t kick the can completely. This will be Kenny’s record in 3 more years. Until everyone in this Country wakes up to the elite style policy we will never address the root cause. Kenny has proven in his latest ridiculous offer that he has NO intention of taxing the rich – none! Let him have his way.
I’m gaspin!!!
vintners federation this excuse of. a government. dose not need any help in coming up with new ways to screw us. so back off . and drop your own price if. you want. US. back in the pubs
I don’t think so! the price of off licences are spoon cheap, 8 cans for ?10 cheaper than coke ffs
You can get 4 litres of coke for less than €5 so it’s not really.
When is the last time you bought Cole a cola? You can get an 18pk for €8 on our local Dunnes, so you are a little bit of the shopping trek there!
Is Dunnes too cheap for you???? :D
Teenagers will go for what ever gets them out of it cheapest, drive up the price of drink and you will have a increased amount experimenting with drugs, not all but more than would usually..
just a thought.
Used to go to the pub at weekends for couple of scoops, never go now unless specifically to meet someone…I drink red wine, you can get a perfectly reasonable bottle for @€10 in any supermarket or off licence, that wouldn’t even but you two drinks at the local! They’ve priced themselves out!!!!
I don’t think so! prices of off licences are so cheap! 8 cans for ? 10 cheaper than coke
Opps Coke a Cola! (Typo)!
People who sit in and have a drink are been taxed because of a minority who think it’s ok to drink on the streets or in ditches. Why not fine them if they are caught if it’s such a problem they will raise the money through fines. But as usual we will accept it.
Why dont they just come to your house with a big stick and demand money.
At least it would be more honest than this bullshit
one over the counter is worth 10 at home….so my grand uncle used to say..drinking beer at home is grand if you have friends or family over. It feels a bit soul-less on your own…wine is different…drinking wine at home feels totally natural..don’t know why…
I remember I came across this 2006 paper by TCD student Andrew Maguire on the web. The paper analyses the reasons behind the high cost of a pint in Dublin and though comparatively less, elswhere in the country. In a nutshell he sources the problem to licensing laws and the exorbitant and ever increasing greed of publicans rather than government taxation. Well worth a read – http://www.tcd.ie/Economics/SER/sql/download.php?key=27
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