Mr. Jim McCabe:

My name is Jim McCabe and I represent the National Off-Licence Association. We were established in 1991 and represent independent specialist off-licences around Ireland. We work with our 315 members and represent more than 5,300 jobs in the Twenty-six Counties, promoting the responsible sale and marketing and consumption of alcohol and sharing best practices within the entire trade. Our shops, including my own, are mostly family-owned. We are local to the community and there is a story behind everything we sell. We do not produce or sell mass-produced products as such or try not to. There has been a change from the on to the off-licence in recent years and off-licence sales now represent approximately 60% of the trade. However, the association only represents approximately 22% of that total, which is falling all the time as the multiples have the vast majority of this share. Since 2008, the independent trade has lost 3,000 jobs and 550 off-licences have closed. In the past year alone, 21 off-licences closed and ten have closed already this year.

In the association's budget submission to the Minister, we requested that there be no further increases in excise duty and that there might be a decrease in such duty. In addition, we sought the introduction of measures to ensure the selling of below-cost alcohol again be prevented. As for excise duty, the rate in Ireland is 62% higher than the normal European Union average and we wonder how this can increase further. The increase in tax last year was huge but the forecast that was meant to happen did not take place and in fact, spirits have fallen in value. Consequently, a diminution in returns is beginning in this regard and we believe that were excise duties increased again, it definitely would happen this year.

Eliminating the practice of below-cost selling would ensure that the State would recoup at least €21 million in losses that happen when someone sells for a price below the purchase price. In addition, it would mean that alcohol would be retailed in a responsible manner with no deep discounting, etc. This morning, a €12 bottle of wine was advertised on radio by one of the multiples as being on sale for €8, which is a reduction of approximately 50%. An increase in excise duty here might increase the normal price of the wine from €12 to €13 but the multiple can still sell it at €8 because there is no ban on below-cost selling. Therefore, increases in excise rates do not mean increases in prices. The whole market has collapsed in our business and if there is an increase in excise this year in the absence of something being done and legislation coming into play, our businesses will fall and decrease as we go along. I thank the joint committee.