Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

The amendments proposed by Deputies Doherty and Boyd Barrett would have the result of deleting the budget increases in the rates of alcohol products tax. These increases, when VAT is included, amount to 10 cent on a pint of beer or cider, 10 cent on a measure of spirits and 50 cent on a bottle of wine, with pro rata increases for other products. The expected yield from these increases is approximately €35 million in 2013 and €142 million in a full year.

These excise changes have to be seen in the context of the suite of measures announced in budget 2014 for the tourism sector, namely the retention of the 9% VAT for tourism-related services and the abolition of the air travel tax. These measures can only be seen as positive for the sector and should increase tourism numbers and consumer spending in pubs and restaurants. A large proportion of licensed premises are offering food to their customers, and the 9% VAT rate will directly benefit those businesses. Those businesses that do not serve food will indirectly benefit from an overall growth in tourism. Excise rates on beer, cider and spirits, as a percentage of the average retail price, are lower now than they were in 2003. Given the options available to the Government and the delicate balance that needs to be struck, the budget 2014 excise increases are justified.

As Deputies are aware, the Government has decided to introduce minimum unit pricing to address below-cost selling of alcohol products. However, in view of the ongoing court challenges to minimum unit pricing in Scotland, it is prudent to await the outcome of the legal cases before pursuing further action in that direction. Any policy relating to minimum unit pricing will be dealt with on an all-Ireland basis to ensure there will be no increase in cross-Border trade as a result of the application of minimum unit pricing in the South. Discussions are ongoing in that regard with our Northern counterparts. On that basis, I cannot accept the amendment.

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