Dáil debates

Tuesday, 21 May 2019

Saincheisteanna Tráthúla - Topical Issue Debate

Alcohol Pricing

6:40 pm

Photo of Finian McGrathFinian McGrath (Dublin Bay North, Independent) | Oireachtas source

I am stepping in for the Minister for Health, Deputy Harris. I thank Deputy Breathnach for raising this important issue. The Public Health (Alcohol) Act 2018 was enacted on 17 October 2018. Its primary policy objectives are to reduce alcohol consumption to 9.1 litres of pure alcohol per person per annum by 2020; delay the initiation of alcohol consumption by children and young people; reduce the harms caused by the misuse of alcohol; and regulate the supply and price of alcohol in order to minimise the possibility and incidence of alcohol-related harm. These objectives were developed in recognition that alcohol causes harms to health and significant costs to the Exchequer, and that alcohol consumption in Ireland remains very high.

Section 11 of the Act provides for a minimum price of alcohol products of 10 cent per gram of alcohol. Government approval was originally given in 2013 for the introduction of minimum unit pricing of alcohol on the basis that it would be introduced simultaneously in the North of Ireland. As the Executive in the North of Ireland is not currently operating, minimum unit pricing cannot be introduced there and, therefore, the Minister for Health is constrained from implementing this measure due to a circumstance that was not foreseen in the original decision. As he outlined in the Seanad last October, he intends to return to the Government to seek approval for this measure and will do so shortly. Minimum unit pricing will target cheaper alcohol relative to its strength because the price is determined by and is directly proportionate to the volume of pure alcohol in the drink. This means that the price of individual products will depend on their strength. It sets a floor price beneath which alcohol cannot legally be sold and targets products that are currently very cheap relative to their strength.

A sample application of a 10 cent minimum price per gram shows that it will affect only the cheapest of products sold in off-licences. The prices of products sold in the licensed trade are unlikely to be impacted by a minimum price of 10 cent per gram. A pub measure of whiskey would cost €1.12, a measure of vodka would be €1.05 and a pint of Heineken lager, Guinness stout and Bulmers cider would be €2.25, €1.89 and €2.02, respectively. The aim of minimum unit pricing is to target harmful drinkers - those who drink so much that they are putting their health in danger. The measure is targeted and it attempts to minimise the impact on moderate drinkers and the minimum price will make little difference to those who only drink low or moderate volumes of alcohol.

Effectively, the price of alcohol products will depend on their strength. Minimum pricing is considered effective because international evidence shows that those who consume alcohol at harmful levels tend to purchase cheaper alcohol relative to moderate drinkers and, therefore, the policy impacts harmful drinkers the most. In addition, a minimum price will mean that strong alcohol products are not cheaply available for children and young people.

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