Mr. Donall O'Keeffe:

In terms of Mr. Fenn's observation about the differential in prices between the on-trade, pub and off-license sectors, he is dead right. We have been highlighting the impact of the abolition of the groceries order since it took place in 2006. It is possible to trace the evolution of off-trade prices declining year on year since then. On-trade prices have generally moved in line with inflation and no further, but the gap has widened because the off-trade prices have dropped. We think it is a very serious problem and we opposed the abolition of the groceries order. A minimum unit price needs to come in to put a floor on prices and to stop the gap getting wider. We have simply to look across the water to the UK and multiple retailer price levels in the off trade there. They are ferociously aggressive. There is scope for prices in Ireland to fall further, and we think it is likely to happen without a minimum unit price being imposed. We think this is a very important initiative that needs to happen sooner rather than later.

In terms of the pub being an integral part of a community - the life blood of local communities - that is absolutely correct. Good publicans today are still very highly engaged with the local community groups, sporting organisations and residents' associations, and that is right and proper. We think it will continue and good publicans will always do this. In terms of sports sponsorship, it is a two-way thing for publicans. It is a bit of a give-back to the people supporting the publican the rest of the year, and it helps generate a bit of business because those teams tend to be loyal to the publican who supports them.

The bigger issue around sponsorship is to look at the underlying objective and we do not believe that a ban on sports sponsorship or sponsorship at festivals will have any impact on alcohol abuse. If it is not going to achieve its objective it simply should not happen. From an industry point of view, we have terrific brand builders in our industry. The Guinesses, Jamesons and Baileys of this world are terrific organisations when it comes to building on brands and improving their equity and position over time. They should have the commercial freedom to do that. One element of it is sponsorship - it is not the sole element - and we think it is right for that to continue.