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

10:50 am

Mr. Donall O'Keeffe:

I thank the committee for the opportunity to summarise our pre-budget submission and our position on alcohol taxation. We represent an industry under considerable pressure. Pub sales in the past five years are down 34%. We believe we have a strong case for an excise reduction but we recognise the reality of the public finances. Accordingly, we are calling for the status quo in terms of excise, that is, that excise levels be maintained at current levels. We are keen to make one important point clear and understood to the committee. Excise has a disproportionate impact on the on-trade. If an excise increase went through, it would result in job losses in the on-trade and a loss of revenue to the Government by virtue of the fact of the VAT intensity of the on-trade. More VAT is generated from the on-trade than the off-trade. We are keen for the committee to recognise the differential impact between the on-trade and off-trade when it is considering its view.