Mr. Peter O'Brien:

The drinks industry is a vital part of the agricultural economy of this country. Since this Government took office it has consistently made the industry a target at budget time which has made an already difficult situation worse. A total of 80% of the increase in the price of a pint since 2011 has gone directly to the Exchequer. Since 2012 the tax on 1,000 cases of wine has increased by €18,000, a cost that has to be borne up front by importers, distributors and restaurants until the product reaches the final consumer. Given the current problem of access to credit in Ireland, this €18,000 has to be soaked up in cashflow, leaving less money for small businesses, such as independent off-licences to invest in growth or their staff.

The industry is now on the cusp of a period of growth. Pubs, off-licences, restaurants and hotels that have come through the recession have had to innovate to survive and are therefore well placed to take advantage of the expected upturn in economic growth. Drinks related tourism is booming, and the pub remains the biggest attraction to tourists thinking of visiting Ireland, according to Fáilte Ireland. The committee has heard about the resurgence in Irish whiskey and the very real opportunities that offers to Irish farmers.

The right policy choices by Government can ensure that this growth potential is realised over the coming years. We are asking this committee to use its considerable influence to call for a reversal of last year’s punitive 20% excise increase to support jobs, tourism and hard-pressed Irish consumers. Excise is a tax we simply cannot afford.

Excise is a tax that we simply cannot afford.
I am sure many committee members have read the report published yesterday by the Health Research Board on alcohol consumption. We welcome the report. It is a long time since we have had such clear data on alcohol in Ireland and I congratulate the Health Research Board on producing it. We need to reflect on some of the headlines printed this morning. A key finding of the report is that 74% of people either do not drink or drink once a week or less in Ireland. In the face of some rather ridiculous headlines in our newspapers today, I wish to repeat that 74% of people in this country either do not drink or drink once a week or less and 26% drink more than once a week. One must ask how we ended up with headlines which state 1.3 million people in Ireland are binge drinkers. The World Health Organization gives us the answer, as its AUDIT-C screening tool is the definition used. It might be jargon to you and I but what it means is if one drinks three pints or more once a month, one is classified as a harmful drinker.
Members of the drinks industry are painfully aware of the fact there is an issue with alcohol abuse in Ireland. We have invested millions in drinkaware.ie, the only health promotion campaign on the issue in this country, and individual companies continue to invest in programmes throughout the country. We are eager to work with the Government to implement targeted evidence-based policies which will work. Classifying the entire Irish population as binge drinkers is not a helpful way to tackle a serious issue and nor is a blanket increase in alcohol taxes. Such increases simply punish moderate drinkers, cost jobs and make our tourist offerings less competitive while doing nothing to alleviate the pain of those abusing alcohol.