Micheál Martin (Cork South Central, Fianna Fail)

The Competition Authority made a submission to the Government alcohol advisory group last month and, subsequently, made it available on its own website. As the independent statutory agency responsible for the enforcement of competition law in the State, the authority is entitled to respond to public consultations. While I have not discussed the submission with the authority, I am aware of the opinions expressed therein. I do not consider it appropriate, however, to comment on the submission, as the advisory group is considering all submissions made to it. The authority is independent and I cannot interfere in its right to make submissions and so on.

The groceries order was not designed to tackle the issue of alcohol abuse, there is no evidence to suggest that it was capable of doing so and it was a wholly inappropriate mechanism by which to seek to control alcohol consumption. The order was not a ban on selling below cost. Rather, it prevented sale below invoice price. In effect, it prevented sale at a price that could be, and often was, considerably above cost. The re-introduction of a ban on below cost selling of alcohol will not result in the Government taking upon itself the power to set prices. Rather, it will take the power of setting minimum prices for alcohol away from one element of the supply chain, the retailer, and handing it to another element, the wholesaler. It will guarantee a margin to the retailer and the publican and, thus, increase the profits to be derived from selling alcohol. Promoting the profitability of alcohol undermines the objective of reducing consumption and also penalises the moderate drinker.

There is a perceived link between the abolition of the groceries order and increased alcohol consumption. However, statistics published by the World Health Organisation show that, apart from a slight dip in 1983, alcohol consumption, measured in litres per capita, increased from 4.83 to 11.23 between the period 1970 and 2001. The groceries order was in operation throughout that period and did not have an impact on this phenomenon. Since 2002, average consumption has decreased very slightly from 11.22 litres to 10.61 litres in 2005. Central Statistics Office figures indicate that the price of alcohol increased during the period from 1976 to 2006.

Combined, the WHO and CSO data clearly show year on year increases in alcohol consumption during a time when price control mechanisms were in place and when the price of alcohol also increased. Price control mechanisms have in the past failed to halt the increase in consumption.

I appreciate that the current level of alcohol consumption in Ireland is excessive and I am fully aware of the range of problems associated with excessive levels of consumption. I welcome the establishment of the Government alcohol advisory group, which is indeed timely, and I will work with my colleague, the Minster for Justice, Equality and Law Reform to advance its objectives.

This is clearly an issue and we must focus on creating the best mechanisms to deal with the unacceptable manifestation of excessive alcohol consumption in our society.

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