Michael McNamara (Clare, Labour)

I draw the attention of the House to the increase in off-licence sales and decrease in on-licence sales and to some of the consequences of this for the State. Official figures from the Revenue Commissioners suggest two thirds of beer purchased in Ireland is purchased in pubs, with one third being purchased in off-licences. However, industry sources suggest the figure for pubs is somewhat lower and for off-licences is higher.

Currently, there is a 5% per annum reduction in the amount of alcohol purchased in licensed premises. However, there is no such reduction in regard to alcohol purchased in off-licences. We will soon reach a situation whereby half of all alcohol purchased in Ireland will be from off-licences, rather than pubs as has been the tradition heretofore. This has a number of consequences for the State which are not good, the obvious one being a loss in revenue to the Exchequer. Even if the same amount of alcohol was being sold - it is not because there is a decrease in this regard - VAT is at 21%. Therefore if, for example, supermarkets sell beer at €1 per can as a loss leader, which they are and have been doing, the VAT to the Exchequer is relatively small. On the other hand, the VAT to the Exchequer from the purchase of alcohol from licensed premises at a considerably higher price is much greater.

Approximately 60,000 to 70,000 people are employed in the hospitality sector in Ireland, a great proportion of whom are in the pub business as compared with the off-licence sector which, I understand, employs approximately 4,000. A number of jobs are under threat because of the shift from the consumption of alcohol on licensed premises. Approximately five rural pubs are closing every week, with a resultant loss of employment. By and large, pubs are family businesses which employ people on a casual basis. In response to a question from Tourism Ireland brand tracker in regard to what people look forward to doing when visiting Ireland, 46% of visitors from France, 43% of visitors from the US and 40% of visitors from the UK said they looked forward to visiting an Irish pub. Unsurprisingly, no one looked forward to going to an Irish off-licence as it is hardly a unique experience.

I understand the next budget will not be a giveaway budget. It will on the contrary be a painful budget. However, I wonder if the move from consumption on licensed premises to off-licence sales could be addressed in the forthcoming budget, even if this means favouring the sale of alcohol, from an excise or tax perspective, in pubs, which are supervised environments. It is illegal to sell alcohol to a person who is intoxicated. However, people can purchase as much alcohol as they want from an off-licence. I believe many of the difficulties being experienced on our streets is the result of young people purchasing large amounts of alcohol in off-licences, drinking it at home and then going out onto the street. I ask the Minister to try to address this through taxation measures.

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