Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Deputy Shortall is correct. This resolution provides for increases in the prices of alcohol products with effect from midnight. It is not meant to be an alternative strategy for alcohol nor is it a strategy for dealing with alcohol consumption. The item was on the agenda for today's Cabinet meeting but it is an issue that requires some considerable discussion both at Cabinet and in the House.

Therefore, as a result of the budget, it will move on.

A number of points have been made. Minimum pricing of alcohol is an issue that is being dealt with by the Minister of State at the Department of Health, Deputy Alex White. It was the subject of a court case in Scotland and it is also before the European Commission. Below-cost selling is a matter for the Minister for Jobs, Enterprise and Innovation, and he has it in his sights.

The question of a lid levy was raised by a number of people. The Minister has been examining ways of restricting the selling of cheap alcohol in off-licences, and particularly supermarkets that have pallets of the product. In recent budgets the Minister examined a proposal to apply a tax to alcohol sold in certain containers and outlets, the effect of which would mainly have applied to off-licences. When the proposals were examined they were found to be in breach of aspects of the relevant EU directive on alcohol taxation, which requires that such taxes are applied by reference to the nature and strength of the product rather than the means of packaging or the location in which the product is sold.

Prior to this year's budget, the Licensed Vintners' Association and the Vintners' Federation of Ireland submitted proposals to the Department, supported by legal advice, on the introduction of a lid-on levy. An examination by the Revenue Commissioners suggested the proposal would likely be in breach of the EU excise directive concerning the general arrangements for excise duty. Further discussion between the vintners and the Department of Finance on the matter resulted in a more focused opinion, covering what they believed was the issue highlighted by the Revenue Commissioners. The opinion of the Attorney General was sought on the revised proposal and the view expressed was that the legal sustainability of the measure was questionable and it would fall outside the framework of the directive.

There is a discrepancy in the figures because of the carry-over of measures contained in budget 2013, which amount to €500 million. There are social issues arising from this, as mentioned by Deputy Higgins. I could bring him to many lonely outposts that were once thriving public houses but for a variety of reasons are not any more. The Minister of State, Deputy White, has brought the matter before the Government for discussion today and it will be discussed here very shortly. Pubs do not provide food in many cases, and places may become popular for reasons such as location. There are constraints on the Government. The question is not about the 9% VAT rate. Deputy Dooley voted against it when it was introduced, and there was no pressure on the Minister to introduce it.

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