Mr. Donall O'Keeffe:

I thank the Chairman and members of the committee for the opportunity to present the views of the Licensed Vintners Association, LVA on this important Bill. We are the representative organisation for the publicans of Dublin. Collectively, our members sell almost 30% of the alcohol in the on-trade in Ireland and employ more than 12,000 people.

We broadly welcome the thrust of this Bill and feel that many of its provisions are long overdue. I will outline specific comments on each of the main headings of the Bill. With regard to head 5 – labelling of alcohol products, in principle, the LVA does not oppose the requirement that alcohol product containers set out the specified information. However, we believe that the information about quantity in grams of alcohol will be of no benefit to consumers as they will not understand it. We note that subhead 5(4) requires licensees with an on-licence to display a notice prominently inside the premises setting out this information. We believe that this is the most appropriate and feasible means for publicans to comply with the labelling requirements. In addition, to minimise the administration and bureaucracy required to comply with the labelling requirement, we propose that a standard notice template be developed, in conjunction with the Department of Health, that sets out the required information by category rather than by brand. This information would also be supplied by standard pub serving. Providing this information by brand would be an administrative nightmare and prove overwhelming for consumers.

On head 6, the LVA fully supports the proposed introduction of a minimum price for alcohol. In addition, we believe that the minimum price must be set at a high enough level to make a significant impact on consumption patterns. The minimum price must be significantly higher than the off-trade market price levels in March 2015. We also fully support subhead 1(e) but propose it should go further, namely, that alcohol should not be permitted to be sold as part of a so-called bundled offer under any circumstances. Our concern is that the other bundled products would be deeply discounted to drive alcohol sales. Such promotions could potentially be funded by the increased retailer margins under minimum price. This scenario should not be permitted by the legislation.

The LVA argues that the policy objective under head 7, calculation of minimum unit price of alcoholic products, should be to return off-trade alcohol price levels to those existing at the time of the abolition of the groceries order in March 2006, adjusting for inflation in the intervening period. Accordingly, based on CSO price levels applying at the time of abolishing the groceries order, and adjusting for inflation of 13.6% since, the rounded off-trade prices that should apply today should be: €2 for a 500 ml can of lager, €23.50 for a 700 ml bottle of vodka, and €10 for a 75 cl bottle of table wine. We understand that the minimum price will be exclusive of VAT and excise and that it is intended to be applied at the same rate, whether the alcohol is sold in beer, cider, spirits or wine form. However, excise is levied at varying rates depending on the alcohol category involved. Excise levels in Ireland are extraordinarily high and VAT at 23% is further applied to all alcohol categories. The Government needs to take care that in the imposition of a minimum price, excise and VAT applies fairly and equally across all alcohol categories. The LVA recommends that the focus be to achieve minimum retail prices, inclusive of the minimum price, excise and VAT, similar to March 2006 levels adjusted in real terms. This may require the minimum price to vary by category. Ultimately, the aim of a minimum unit price is to impact the retail price. Accordingly, it needs to be communicated in retail price terms, including all taxes, to consumers and the public. The retail price levels proposed will eliminate deep price discounting in all categories, and will have an immediate and direct impact on alcohol consumption levels and patterns.

Head 9 relates to the control of marketing and advertising of alcohol products. The LVA supports the provision to prohibit the marketing and advertising of alcohol in a manner that is intended or likely to appeal to children. The main brand owners are responsible in this regard. We urge the Government to ensure a fair and appropriate balance between prohibiting advertising and marketing likely to appeal to children, which is a priority, and facilitating brand owners to invest in their brands and implement responsible advertising and marketing programmes. We urge the joint committee to consider the prohibition of price-based advertising of alcohol as this would have a much more immediate and direct impact on consumer behaviour.

Head 15 concerns the amendment of section 9 of the Intoxicating Liquor Act 2008. The LVA's position is that section 9 of the 2008 Act should be commenced immediately. Developing and implementing a statutory code for a two-year period is a poor substitute for full structural separation. We believe there is no scenario where such a statutory code could prove more effective than structural separation. The LVA notes that the current voluntary code operated and monitored by Responsible Retailing of Alcohol Ireland, RRAI, is completely ineffective. Full structural separation would achieve the aim of dramatically reducing the visibility of alcohol in mixed trading retail environments. In addition, the structurally separate unit must be required to have its own dedicated staff and its own customer pay points and till systems. These are required to ensure there is specific staff accountability for alcohol retail sales, to facilitate specific staff training in the responsible retailing of alcohol and to provide for effective point-of-sale control. This head provides environmental health officers with the powers to enforce the provisions of section 9 in the event of its commencement. There appears to be no clarity on which State organisation or officers are responsible for enforcing the proposed statutory code on the display, sale, supply, advertising, promotion or marketing of alcohol, and this needs to be made explicit.

The LVA welcomes the publication of the general scheme of the Bill and supports many of its key provisions. In particular, we urge the Government to ensure a minimum price, including excise and VAT, is achieved that results in significant change in consumer behaviour and purchasing patterns. Returning alcohol prices, in real terms, to the levels that applied prior to the abolition of the groceries order is a rational approach and would be a positive step. In addition, reducing the availability and in-store visibility of alcohol via structural separation is also essential and we urge the committee to recommend full structural separation in this regard. There is no scenario where a statutory code would prove more effective than structural separation.