Oireachtas Joint and Select Committees

Thursday, 7 March 2013

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance Bill 2013: Committee Stage (Resumed)

10:50 am

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent) | Oireachtas source

Let us consider the rationale behind the €1 increase on a bottle of wine. Representatives of the industry are telling me it is not the case that the price at which they sell wine increases but that it is multiplied. They have explained the position to me, but I cannot quite remember exactly how the measure works. I believe the way it works is that the supplier must increase the cost by €1, after which the price rises further because of VAT, etc., such that the price charged to the customer increases by significantly more than €1. This stood out for me as being a little unusual. We obviously have very high prices here relative to other European countries. I am not necessarily opposing the increase, but it feels as if the Government has gone too far in one specific area by targeting one group of people, mainly winesellers. What are the Minister's thoughts on this? Might this measure be revised and reversed a little? Perhaps the Minister might rebalance it against others. It appears that one particular product which some very good, responsible businesspeople sell as their only product has been singled out for a major increase.

I support Deputy Pearse Doherty's point on below-cost selling. The ban operated quite well in Scotland and I encourage the Minister and his team to consider it.

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