Oireachtas Joint and Select Committees

Thursday, 8 November 2012

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion with Civic Society Representatives and Focus Groups

11:00 am

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party) | Oireachtas source

I do not agree with the exercise we carry out every year, where tax increases on alcohol and tobacco in the budget are justified on the grounds of health. I have always opposed these tax increases, particularly on tobacco. The health issue is an excuse and hypocrisy by Governments. Health issues are serious but they should be dealt with in a different way, rather than by piling on taxes. That is also my position with regard to the forthcoming budget. At the same time, I am in favour of a complete ban on the advertising of legal drugs which can have very damaging effects, even though most of us take them to some degree or other.

If there was no increase in tax on alcohol, or even if there was a decrease, which is unlikely, what is the chance of Mr. O'Keeffe's industry giving a break to the customer? There is a huge rip-off in the pub industry on the sale of wine per glass, for example. In an off-licence premises of one of Ms Jones's members one can buy a bottle of wine for €8, but one would be charged €5.50 for a glass of the same wine in many pubs. If, conservatively, one can get five glasses from a bottle of wine, that amounts to €27.50. That is a huge rip-off of someone who is having a social drink. If the Exchequer does not take money from the public, some element of the drinks industry will.

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