Denis Naughten (Roscommon-South Leitrim, Independent) | Oireachtas source

I welcome the opportunity to speak on this matter and I wish to deal specifically with Financial Resolution No. 1 concerning the tax on alcohol products. A detailed proposal was put to the Department of Finance to introduce a lid levy which would bring in about €240 million. The proposal before us will bring in about €180 million. The difficulty is that, while a detailed report was published earlier this year by my colleague, Deputy Shortall, on the national substance misuse strategy, there is nothing in the proposal before us to deal with the demand aspect of alcohol.

There is a precedent for this. A few years ago, there was a proposal to increase excise duty on alcopops because of the health issues involved. At present, over half of Irish 16-years-olds have been drunk and one in five is a weekly drinker. According to the latest available statistics, from 2008, there were 88 alcohol-related deaths per month. It is also a significant contributing factor in suicide. Every night, about 2,000 bednights are tied up by alcohol-related conditions. It is, therefore, having a major impact on the economy and is costing about €3.7 billion, half of which is taking money directly away from the health budget. There was an opportunity to nuance the proposal before us. The steering group report refers to increasing excise across the board thus making alcohol more expensive, but it also highlights below-cost sales of alcohol and suggest proposals in that regard.

The strategy examined minimum pricing and suggested that it should be introduced. It has already been introduced in Scotland. All it is doing here, however, is increasing the profits of the drinks industry. The proposed lid levy on the other hand would increase revenue coming in to the Exchequer that could be put into other diversionary tactics on alcohol and substance abuse. It would have helped to implement the strategy as set out in the substance misuse report. I am disappointed that it has not been addressed here today.

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