Dáil debates

Thursday, 23 March 2017

Intoxicating Liquor (Breweries and Distilleries) Bill 2016: Second Stage [Private Members]

 

3:10 pm

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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I move: "That the Bill be now read a Second Time."

I thank the Deputies who are here for the debate on this Bill. It is a small Bill but it is very important legislation that will have a dramatic impact on the microbrewing and distilling industry. I welcome to the Gallery a number of my good friends and colleagues - craft brewers from the four corners of Ireland - who are here to watch proceedings. This Bill will change their lives, careers and economic prospects and the economic prospects of the localities they represent throughout the length and breadth of this country.

One of the craft brewers in the Gallery is Mr. Cuilan Loughnane, who owns the White Gypsy Brewery in Templemore. I thank him in particular for inspiring this legislation. I am only acting as the conduit. He employs three other people and last year, he won the best beer award. When I called in to congratulate him, he told me the story of a number of visitors to his brewery from the US and their exasperation that he could not sell them anything was clear. He could not sell them a bottle to be taken away or consumed on the premises. He told me of how a group of brewers came together because they wanted to deal with this issue. I committed there and then to helping him, because this anomaly must be addressed quickly if the industry is to grow.

The aim of this small but important Bill is to remove a major regulatory barrier to breweries, microbreweries, cider makers, distillers, vineyards - Ireland has more than a couple - and others and allow them to sell their produce to visitors and tourists on site and those who wish to take that produce off site. Currently, microbreweries cannot sell their own produce to tourists and visitors on site. The Bill would also allow for restricted off-sales and on-sales, but only in respect of the microbreweries' own produce and nothing else. They could only sell during normal trading hours and would be closed at 6 p.m. As such, this is nothing like a pub licence. Rather, it is a specific licence to address an anomaly and allow these individuals, who are working hard in a labour-intensive industry, to increase their outputs and their capacity to raise revenue and to give a tourism experience to those who wish to avail of their produce.

I will go through the Bill's various sections shortly; it is a common sense Bill. Imagine touring the amazing vineyards of Italy, France or Spain, for which there are significant tourism markets, only to be told at the end of the tour that people cannot taste the wines that they just saw being produced or order a case for when they leave. That would be mad, but it is the situation facing Irish microbreweries and microdistillers. Imagine not being able to purchase wine or allowing that industry to grow in Bordeaux, Tuscany or La Rioja. That is what is happening in Ireland.

It is a resilient industry, but even resilient industries need help. It is estimated that there are some 90 microbreweries operating in the Republic, of which 62 are production microbreweries and at least 28 are contracting microbreweries. There has been a 29% increase in the number of production microbreweries from 48 in 2015 to 62 in 2016. That is an incredible jump in a short time. The number of microbreweries has more than quadrupled since 2012. This has happened in other countries, for example, Canada, but because of a lack of supports, their microbrewery industries collapsed. We must ensure that the same does not happen in Ireland.

There has been a phenomenal growth in new enterprises in the past two years. Thirty-three of the 62 production microbreweries commenced production in the 2014-15 period alone. The output of craft beer microbreweries amounted to some 134,000 hectolitres in 2015, representing a 56% increase on the 2014 figure. In absolute terms, output rose by 48,000 hectolitres. Output from the 13 microbreweries that commenced production in 2015 accounted for one quarter of the increase. On the basis of trends, the breweries anticipated last August that output would increase by 63,000 hectolitres, or 47%, in 2016. Given the trends of recent years, it is clear that the percentage growth rate in production is in decline from a high of 75% in 2013. As such, now is the time to ensure that this industry is supported. Craft beer producers' estimated total turnover in 2015 and 2016 was €40 million and €59 million, respectively. In the more than five years since 2011, turnover has increased elevenfold. Based on international experience, there is substantial potential for further development of the Irish craft beet industry in terms of numbers, output and employment. An increase in the number of breweries to more than 100 and a fivefold increase in output are possible in the longer term.

The microbrewing industry sources more than half of its brewing ingredients by value domestically. For example, 95% of microbreweries source supplies of malted barley from within the Republic, typically amounting to 80% or 90% of all of their malted barley inputs. Distribution is a further source of local spin-off activity. Thus, there are significant downstream benefits for agriculture and other sectors.

At 2016 production levels, microbreweries employed 439 persons of full-time equivalent status. That number is constantly increasing. Of the industry's total employment, 399 persons were employed in production microbreweries and 40 were employed in contracting companies. Consider the two largest brewers in Ireland, specifically the number of people employed in their production operations. Compared with the numbers employed by microbreweries, there is not much of a difference. It shows that this is a labour-intensive industry that hits the four corners of the country and has benefits beyond all of that.

This industry has significant tourism capacity. I speak as a former manager of Bord Fáilte and Fáilte Ireland. I have discussed this matter with Fáilte Ireland extensively. I have seen visitors to many of the breweries represented by those in the Public Gallery. After taking a tour, visitors are told that they cannot buy and consume the beers on the premises or take the produce away. It is utter madness if one is trying to develop an industry around the four corners of Ireland.

Fáilte Ireland is so in favour of this legislation that it helped me launch the Bill a few months ago and spoke at the event. Imagine how Fáilte Ireland would promote this industry as a new product and experience for domestic and international tourists. It is already doing that in respect of distillers, particularly whiskey distillers, and it wants to create a craft brewing marketing map that it can promote domestically and internationally. We all know that the No. 1 visitor site in Dublin is the Guinness Storehouse at 1.6 million people. We are always discussing the need to spread tourist numbers around the country and to create more regional jobs. Imagine marketing these breweries to people who are interested in visiting these sites. There must be a considerable volume of such people.

There are opportunities downstream for many other industries, for example, farmers in terms of cereal sales, if we can get the industry to a level that sustains demand at a fair price for the cereal crops that the brewers need. Farmers need more distribution outlets and to diversify. This Bill presents a significant opportunity in the short to medium term.

I encourage Teagasc to examine the matter. The potential is not just limited to creating jobs downstream and through tourism and increased production. The Action Plan for Jobs has both a national and regional focus. There is also the Action Plan for Rural Development. This industry ticks all the boxes in terms of the action plans I have outlined. Many of the brewers live in rural areas and provide employment for local people. When they expand their operations, such employment will multiply. Furthermore, with the passage of the Bill, not only will there be more direct employment due to increased production, in the agriculture sector and in sales and marketing, there will also be employment in the construction sector because many brewers will expand their premises. I have met many brewers who wish to invest but that is conditional on the Bill being passed. As well as making the breweries bigger, there is a need to create visitor experiences. That will create employment. One can imagine the positivity that will create in rural areas.

Many of the large brewers have a significant market share and when it comes to incentivising sales through pubs, they can always do more than the small producers. I believe in supporting the small operator to get fair play. Small brewers will never be able to incentivise publicans to the same extent as the larger ones in order to sell their produce. While brewers might put together packages for publicans to exclusively sell their produce if this Bill is accepted, we will be able to create awareness of the produce of microbrewers and ensure greater knowledge and, accordingly, demand for craft beers and other artisan products which will ensure that the playing pitch is little bit more even as a result.

We have great microbrewing and microdistilling industries that need support. The Bill is a simple one that is just over a page long. The first section lists the beverages to be covered, namely, beers, spirits, cider, etc. On Committee Stage, I would be willing to add other products such as wine. Section 1(2) outlines the times microbreweries and microdistilleries can sell their products, which is from 10 a.m. to 6 p.m. Section 1(3) outlines the offences prescribed in the event of non-adherence to the terms of the legislation and the impact of that. The Bill also defines what constitutes a visitor for the purpose of the legislation.

The Bill is a principled one which has received great support in the House. The reason for that is the Bill is a common-sense measure. Those involved in the industry are investing in their communities and looking after their local culture and traditions. The connection with the history and culture of the locality is evident from the names of some breweries and the beers they brew. There is also a connection with cultural trends across the country. For that reason, I urge each and every Member to support this common-sense Bill to give microbrewers and microdistillers across the country a fair chance and to allow the industry to grow to a level that is sustainable in the long term, to develop an export market and to develop a tourism product of which we can all be proud.

I thank everyone in this House who has told me he or she will support the Bill. I also thank all the microbrewers who are present in the Gallery, in particular, Cuilan, Gráinne and Seamus who have been working with me since day one. It is very important that the Bill is passed.

I acknowledge the person who put much of his life into the microbrewring industry, namely, Oliver Hughes, a pioneer in craft brewing in this country. He developed the famous Porterhouse brewing company and he passed away over a year ago. It was his foresight that allowed this industry to grow to where it is today. I urge Members to be fair minded and to allow the Bill to pass. I hope the Bill will pass before the summer so that all of those who are in the Gallery - and other brewers across the country - will have a chance to grow their industry, which they desperately need to do.

3:30 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I thank Deputy Kelly for publishing this Bill. At the outset, and on behalf of the Tánaiste, let me state clearly that the Government will not oppose the Bill. I am personally quite supportive of it. However, in order to address certain shortcomings, the Government will propose appropriate amendments to the Bill in due course on Committee Stage.

It goes without saying that the Government is fully committed to supporting regional and local development and, in that context, to fully exploiting the job-creation potential of artisan food production and local tourism initiatives. Recently, we have seen an increase in the number of craft breweries and distilleries, and this trend is set to continue. This is a dynamic and entrepreneurial sector with real growth potential.

Some craft breweries and distilleries admit visitors for guided tours of their premises. They tend to attract tourists to the area and create local employment opportunities. They also contribute to local economic activity by generating demand for the provision of ancillary services such as accommodation, catering and transport. I visited a craft brewery in my constituency, Eight Degrees Brewing in Mitchelstown, recently, which is expanding. Deputy Kelly was correct in that regard. Having completed a tour of the premises - and having tasted products produced on site - it is only natural that visitors may wish to purchase some of the products. Some of the larger breweries and distilleries have already obtained public house licences which enable them to sell alcohol products, including those produced on the premises, to visitors. For smaller craft brewers or distillers, that may not be an option, not least because of the outlays required to extinguish an existing licence. The purpose of this short Bill is to cater for their needs.

While accepting the general principle that breweries and distilleries be permitted to sell their own products to participants on guided tours, and recognising that the provision of licences for indigenous producers can boost local enterprise and employment opportunities and lead to increased tourism activity, we must also remain alert to the risks of potential abuses. Experience shows that loopholes in licensing law tend to be fully exploited.

Deputy Kelly's Bill proposes the creation of a retail licence which would authorise the sale of the licensee's own alcohol products "for consumption on or off the premises". That would permit licensees to establish a bar on the premises in which visitors could remain for an indefinite period between 10 a.m. and 6 p.m. to purchase and consume such products. While the Bill proposes that the Revenue Commissioners would automatically grant a retail licence to holders of licences for the production of alcohol products, the grant of a retail licence under the licensing Acts requires the presentation of an appropriate court certificate to the Revenue Commissioners. A District Court certificate is required in the case of an off-licence and a Circuit Court certificate in the case of an on-licence. That requires the applicant to apply formally to the relevant court, on notice to the Garda. The certificate Is normally granted unless the court refuses to do so on grounds such as the character, misconduct or unfitness of the applicant; the unfitness of the premises concerned or; the unsuitability of the premises for those residing in the neighbourhood.

The objectives of the court-based procedure are to ensure that licensed premises are suitable and safe for customers and that they will be operated by licence holders in a responsible, peaceable and orderly manner in accordance with licensing law, including the prohibition on sales to under age persons. It also permits any potential adverse impact on local residents to be taken into account at the outset.

In order to obtain a retail licence for a craft brewery or distillery as proposed in the Bill, the applicant should, therefore, be required to obtain a court certificate from the District Court or Circuit Court, as the case may be. Having obtained the certificate, the Revenue Commissioners will issue the licence and it will be renewed automatically each year without any further court involvement unless there are grounds for objecting to renewal. Such objections, arising, for example, from disorderly conduct or drunkenness on the premises or nearby, can be dealt with by the District Court.

It should be noted that obtaining a retail licence could also require change-of-use planning permission, but that is covered by the planning code rather than licensing law. In the case of an on-licence, compliance with relevant fire safety standards is also essential. Under the Fire Services Act 1982, the fire authority is also a notice party to any application for an on-licence.

The Bill proposes that licences be made available to "premises to which visitors are admitted on guided tours". However, whereas premises would be required to admit visitors on guided tours, there is no clear requirement that visitors must have participated in and completed such tours prior to purchasing alcohol products. This could be interpreted to mean that any person entering the premises, whether participating in a tour or not, would qualify as a visitor for the purpose of the Bill and be permitted to purchase alcohol products produced on the premises. I am sure this is not Deputy Kelly’s intention and the matter can also be addressed by a Government amendment on Committee Stage.

The Government is not opposing the Bill and I thank the Deputy for introducing it. I look forward to the rest of the debate.

3:40 pm

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I thank the Minister of State for his contribution and brevity. I have a long list of speakers and I thank Deputy Fitzmaurice for allowing Deputy Mattie McGrath to proceed first because he has a hospital appointment.

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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I rise with pleasure to support my colleague's Bill. I know it is short but much research has gone into it. The Bill is long overdue and I am glad the Government is not opposing it. That is a sign of some resemblance of the new politics in the context of which we are supposed to be operating. I note there will be some amendments but they sound quite reasonable. We will tease them out on Committee Stage.

I welcome the guests, whom I would describe as entrepreneurs, to the Gallery. Some are from Tipperary and some from elsewhere. We need such creative people with the vision, insight and courage to put their money where their mouth is and try to stimulate business. They have an idea, test it and design a product before trying to promote it. They put in the long hard slog as that is what it takes to get something from farm to fork or, as in this case, from the grain to the good craft beers and alcohol products that the Bill aims to support. Activity in this industry has mushroomed. My neighbours, the family of a former colleague of the Minister of State, the late Deputy Theresa Ahearn, are setting up such an enterprise and the Minister for Housing, Planning, Community and Local Government, Deputy Coveney, launched it in Tipperary. It is on the finest land in the Golden Vale, where the finest of malting barley is grown. It has been stored since last September. It is the Tipperary Boutique Distillery and the name precedes it. We produce some of the best barley and other cereals in the south east and the rest of the country. It is very important that we support what is proposed and it gives me great pleasure to do so.

I am pleased Deputy Alan Kelly has clarified some issues that had given rise to concerns for some people. It is only people who visit and tour a brewery or distillery and who wish to sample or buy some of the products who should come under this legislation. The Minister for Transport, Tourism and Sport, Deputy Ross, is not here but we might have to stay a week in the townland if he gets the alcohol legislation he desires. Even the smell off us when we come out of the brewery would stop us from sitting into the car. I know there is talk of remote-controlled cars but the Government is supporting that legislation, which would be a death knell for rural Ireland. It is an important issue and I do not condone drink-driving or deaths and injuries from such activities. The legislation to which I refer is ridiculous and it would achieve the exact opposite of what the Bill us is seeks to achieve and what all the rural Deputies want to achieve. Ireland exists outside the Red Cow roundabout, or the "mad cow roundabout" as some people like to call it. The madness is on this side and the sensible people are outside it. They need to be allowed to breathe, live, work and create an economy for our families and ourselves.

I am not normally known for supporting or having a love-in with Deputy Kelly but this is certainly good legislation.

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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I second that.

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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I support it and I compliment the Deputy. He mentioned his experience of Fáilte Ireland, which we all have, and we are trying to get out tourist products and promote our country. There are job losses every second week in our provincial towns but what we are talking about now is the best of rural Ireland. We have it in our culture. The Deputy's colleague, Deputy Penrose, recently introduced a Bill regarding Irish song, dance and music. Bhí craic againn and this obair is the same; it is of the people and by the people. We are talking about people's products, the capabilities and expertise that they have. These people have done their research and I have tasted the products from Deputy Kevin O'Keeffe's constituents in Mitchelstown, Eight Degrees Brewing. It is good stuff and it would put hair on one's chest. The name explains it. It is near the Minister of State's constituency as well.

We must support these entrepreneurs and, as the Minister of State noted, licensing is a different issue if there are to be extended hours. We can see how liberal is the licensing regime for all kinds of alcohol in off-licences. I am 100% a supporter of the pubs, especially those in rural areas. They have their licences approved by eminent judges and are not objected to by the Garda. They look after their customers. Customers in off-licences can buy copious amounts of alcohol. I am not talking about those attached to the pub but rather the mushrooming of such sales in supermarkets and everywhere. I pity anybody recovering from alcohol addiction or anything else if they have to buy a loaf of bread, a pound of butter or 20 cigarettes. It is in front of people everywhere. There is legislation to deal with that as well and we must be delicate about it.

We must support what we have left of rural Ireland and this is certainly an effort to do so. There are 450 people working in this sector already and it is mushrooming. People are willing to put their hands in their pockets, such as my neighbours, to develop a business and have another outlet for our own malting barley. That is instead of selling it. I am delighted to be able to support the Bill and I look forward to its passage through the House. I note the Minister of State has indicated the Government will not oppose it. There will be amendments in respect of the licensing laws in case people have what the kids might call a sleep-over. This is about a tourism product that is the best of the truly Irish, which can be shown to people from all over the world. Although I am not experienced in vineyards, I know my colleague, Deputy Wallace, is. I will allow him to pick up that topic. I have experience with corn since I was a búachaill óg, using the reaper-binder to make sheaves. Good practices have grown in the production of top-class grain, particularly malting barley. Ar aghaidh leis an mBille. I thank Deputy Fitzmaurice for allowing me contribute at this time.

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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As with the previous speakers, I welcome this Bill and I commend Deputy Kelly on putting it forward. This group has through the years ploughed a furrow when many people would not have taken notice of them. They had to go without much funding or backing and they did not have the media coverage that many drinks companies have. They had to try to spread the word on the basis of the few pounds they made. It is incredible to hear the stories of where their craft beers are being sold, even as far away as Russia. I commend them and yesterday I listened to the stories of ordinary people going out to set up a business and taking a risk; they now employ more people.

In fairness to the previous Government, it was said by the people in the craft brewing industry that they got a break they needed, which made a difference and meant they could invest back into the businesses. This was not a political point but they praised what was good. They saw the stumbling blocks to bringing in more revenue.

Deputy Kelly spoke about the craft brewers and distilleries.

I never knew until yesterday that there were people making wine in Ireland. In Dublin, there is a winery. It is good to see people doing such work and employing people in areas where one might not have seen a lot of tourists because one or two jobs in a rural part of the country make a huge difference to people. In breweries such as Black Donkey in Ballinlough, Galway Hooker and those in the different small towns around the country, I note their enthusiasm for getting their name out there and driving it forward.

This Bill provides an opportunity to help everyone in a town. It is not alone that it may help the brewers so that they could give a tour of their premises. The reality is that these brewers do not have the money to be buying licences and all that goes with it. Maybe the big brewers, who can have 1.8 million visitors a year, can afford that but it would be so important if these get only a fraction of those visitors, as was stated earlier on, to come in, be able to buy what they are producing and sit down and have a taste of it. It is not a threat to publicans because it is clearly stated that it would be over at 6 p.m. There would be a knock-on effect on the town or village concerned. Some of this enterprise is in villages. There are not populations of 10,000 in a lot of the towns I know of where these are operating. Maybe a small place could set up cooking food and the visitors will probably go into the local pub. These are the economic benefits one brings to areas that may get more people working.

There was another side yesterday that I was fascinated with - one learns as one listens to people. They spoke about the different types of malting barley that can be grown in different parts of the country, be it Carlow, Cork, Wexford, Galway or Roscommon, and the different tastes of it. It was said that some of the bodies that we have in place to do research were not overly interested in it. I said we should get colleges involved because I learned yesterday that there is one country in the world that can produce a malting barley for which you can get up to €1,200 a tonne. If we could crack that nut for our farmers - maybe we would have to mix different varieties - not alone the breweries but the farming community here would do well. The more one can diversify into different areas, to put it simply, the less people who will be trying to eat out of the one trough. That opportunity is there. I encourage the Minister for Education and Skills, Deputy Bruton, to get colleges involved or help those brewers. It is sad to see, if we are pumping money into certain organisations or groups in this country, that they are not bothering their I-will-not-say-what to research all of these matters. Every way that we can put people working or making people's lives better in different parts of the country is so important and at the end of the day, it generates more revenue for the Government and results in fewer out of work.

Also, it is good to see today for the first time ever in the new politics the two Tipperary Deputies are agreeing. Both of them are backing it. Around the House, it is good to see that a bit of commonsense prevails. When one sees something good, one should go and back it. One should forget about the political side to it. These are ordinary people out there who, like any person who sets up a business, take the risk. They have to go in and borrow a few euro. Sometimes when one goes in and tells them that one is thinking about brewing one's own beer, they could look at you twice. Funnily enough, the banking system thinks that there might be only one or two big players in the market because it was commercialised, but these are like artists. They are unique. They try everything. A few months ago I attended a brewery launch and it was my first taste of it. In fairness, it was well done. There are different varieties. There are so many different brewers all over the country full of enthusiasm for what they are at. I noted the love of their work. Every incentive should be given to them.

They were adamant that politicians make sure of one thing. It was made clear by Government previously that it did not want the breaks that they got to be used for the wrong reasons, such as to drop prices. They were told to put it back into their businesses and they adhered to it. In fairness to them, as I heard earlier, one does not want disorderly behaviour or whatever. It is my opinion - I have not met everyone but I have met many of them, in fairness, through Deputy Kelly - that they are people with a vision of where they are going, with a love of what they are doing and who will create more employment and will definitely bring more revenue in for the country and especially to the parts of Ireland that have been harder hit than most and where jobs are so important.

I welcome the Bill. I congratulate Deputy Kelly on bringing it in. I hope it is not undermined in Committee with too many amendments to it. I note there is a good amendment about assurances for those making whiskey. This is another side of it. Irish whiskey, at one time, was all over the world. We had a name for it. The more we can do for that, and even the wine makers which was a new development we learned of yesterday, the better. We should ensure that all of these people get the incentives. If we could bring 1 million of those 1.8 million down the country, it would be good for rural areas and for creating a lot of jobs.

3:50 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Deputy Wallace is next. There is eight minutes per Member, given the number of Members who are now offering.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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I too welcome Deputy Kelly's Bill. Fair play to him for bringing it forward. It is a breathe of fresh air. It is a straightforward and logical Bill that will be of great benefit to Ireland's burgeoning microbreweries, distilleries and cideries, tourism throughout the country, Irish industry and exports.

Currently, if one visits a brewery, it is illegal for the brewery to sell its own product directly to the public in whatever form it likes. This Bill would allow for the establishment of tap rooms in the brewery during hours that will not have an adverse effect on publicans. The financial benefit for these producers in being able to sell a percentage of their product while retaining the cut that normally goes to the distributor and publican which would not be insignificant. The Bill will do away with the main obstacle that has been holding Ireland back from being an internationally famous beer, whiskey and cider tourism destination.

The quality of the range of craft drinks products in Ireland is improving all the time. There are more breweries, cideries and distilleries coming online all the time and many in the planning stages at present. There is plenty of room for more. Currently, Irish microbreweries only occupy 2% of the beer market but, as Deputy Kelly pointed out yesterday, the breweries that make up 2% employ more people than the two biggest brewers in Ireland which control 65% of the market combined. If Irish microbreweries reached 4% of the market, there is potential to create hundreds of jobs here. One need only look at the US to see the potential for such home-grown breweries and distilleries. The US, the home of capitalism, now has over 5,000 breweries and they occupy 12% of the market. It goes to show what is possible here.

There are relatively untapped industries connected to the craft drinks market that will get a boost from the craft drinks industry. Already, breweries such as White Gypsy have worked with Minch Malt to start developing the quality of their product, such as the malt being grown with farmers around the Hook Head peninsula in Wexford. Obviously, this all is very parish pump of me, but I should name some of the farmers involved: Mr. Martin Foley, Mr. Jim Colfer, Mr. Kevin Creane, Mr. Vivian Tubritt, Mr. Pádraig Colfort, Mr. Tom Harpur, Mr. Vivian Roe and Mr. Joe Chapman.

4 o’clock

As the Minister of State knows, it is not often I do a bit of parish pump politics here, but high quality hops are grown in the UK and can also thrive here. All that is needed is a bit of increased demand on the island. Fair play to the farmers in the region of the Hook for putting their necks on the line on this.

In terms of tourism, the Bill is essential if Ireland is to become a craft drinks destination. Irish breweries are spread across the length and breadth of the country and are generally not concentrated in cities. The Bill will create another reason for people to travel around the island and, importantly, to places that may not yet be on the beaten track for tourism. Publicans who stock the product of their local brewery will benefit from extra trade when the brewers close at 6 p.m. and recommend the local as a place to try more of their products and those of other producers. The Guinness brewery tour is Ireland's top tourism attraction with more than 1.5 million visitors a year. It is about time certain Irish companies got a share of that tourism trade. Currently, we are dominated by foreign breweries here in the forms of Heineken, Carlsberg and Diageo. It is about time we helped our own.

The current law in this area is an outdated and unworkable relic of British rule which allows a brewery to sell directly only where the amount of beer is in any quantity not less than 4.5 gallons or two dozen reputed quart bottles, meaning about 19 litres. The existing legislation is stifling the growth of breweries by preventing them from maintaining control of the sales of the product they create. As such, I commend Deputy Alan Kelly and the work of Metalman, O'Hara's and White Gypsy on getting the Bill this far. As the Minister of State knows, I am a member of the justice committee and I will certainly help the Bill to move forward. I got into an argument with the Minister for Finance a few weeks ago when he was looking for me to declare my interest when I talk about Cerberus. I have an interest in the truth being told about that, but I will declare my interest in craft breweries. We still operate four wine bars and the only beer we sell there is craft beer. We started off selling solely beers from Italy and we have learned a great deal from the Italians. We are also selling beer from Kinnegar, Donegal, Rascal's from Dublin and the Porterhouse and the Irish beer is getting better all the time. Things are improving. In Italy, we went around vineyards to source wine. The idea that one would not be able to buy products from a vineyard is unthinkable. Italy is full of wine bars and the fact that producers can sell at source is not a problem for them. It is a simple matter of commonsense. I have been to umpteen craft breweries around Italy and one can buy beer there and take it away. It just makes sense and brings trade to small villages.

As has been pointed out before now, most craft breweries in Ireland are not in the big cities but are all over the place. In Wexford alone, there are four companies, YellowBelly, Clever Man, Arthurstown and Jack Doyle's, and every county has numerous craft brewers. The craft breweries got off the mark in Italy about 20 years ago and I remember visiting a few in 2000. At that time the big multinationals started to buy out anyone who got good at what he was doing because they were afraid of craft brewers. However, it reached a point where there was a craft brewery opening in Italy every day of the year and they had to stop. The market is growing and I do not see it being a problem under any circumstances for the Irish publican. It will actually develop an appreciation for the taste and quality of real good beer and help them in the long term.

This notion that people drinking craft beer in an industrial estate where a brewery has been set up might lead to anti-social behaviour is nonsense. People who drink craft beer drink much less than they do of commercial chemical beers. Let us call a spade a spade. Heineken, Guinness, which, God knows, I drink myself sometimes, and Carlsberg are chemical commercial beers and one can drink gallons of them. One cannot do that with craft beer because there is so much more substance and quality to it. One cannot drink it in the same quantities. In fact, therefore, promoting craft breweries in Ireland will actually be good for the health of the Irish people. Not only will they be drinking fewer chemicals, but they will also be drinking less alcohol. It is a win-win for the Government given that our health bill in 2014 to deal with alcohol abuse was €3.6 billion. It is about time the Government joined the dots and started to promote craft beer.

4:00 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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It looks like Deputy Wallace is going to be the poster boy of the craft beer industry.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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I am delighted to have the opportunity to speak to and support the Bill. I compliment Deputy Alan Kelly for bringing it forward. As he said, it is a commonsense Bill. I welcome the people from the industry who are in the Gallery and who have taken a day off from their businesses to support the Bill. There are 63 microbreweries around the country, the number having spiralled in the last few years. They have added greatly to the rural economy. One of the first was O'Hara's in Carlow which had humble beginnings 21 years ago and now employs over 60 people having moved to bigger premises in recent years. O'Hara's sells its products in 150 pubs and in 25 countries around the world. It is a huge achievement for a company that started from humble beginnings just over 21 years ago. The company also has the future possibility of developing a visitor centre which will hopefully add to the community. Just a mile down the road from O'Hara's is Walsh's whiskey distillery which opened only last year. It is a huge €25 million development which also has the possibility to develop a visitor centre over the next number of years.

What will this do for the rural economy? The huge tourism potential has already been mentioned. Between the two premises I have mentioned, it is hoped to attract 100,000 visitors in the next few years to a rural part of the country, Carlow, which is not traditionally known for its tourism possibilities. Along with the tourism potential of Ireland's Ancient East, Fáilte Ireland and Tourism Ireland must join the dots to tie in the microbreweries and distilleries to ensure that it is not just Dublin, Cork and Galway, but the Carlows of this world that attract badly needed tourists to generate more income for local areas. We have heard a great deal of talk over the last number of years of the decline of rural Ireland, including post offices and small schools. Microbreweries are an important element in the rejuvenation and regeneration of rural Ireland. Approximately 400 people are involved in these businesses. Between them, O'Hara's and Walsh's distillery will employ over 100 people in the next two years in the small area of Bagnelstown in County Carlow. If a foreign direct investment company launched a big project in the morning employing 100 people in Ireland, we would all be jumping up and down at how great it was. These are sustainable jobs for the future which are crucial to rural Ireland and it is vital that we support them going forward.

This is also very important from an agricultural point of view. Deputy Kevin O'Keeffe has highlighted the plight of the tillage industry in the last year in particular but also across previous years. This is another way to promote the tillage industry and the malt industry. Deputy Fitzmaurice mentioned education, which is crucial. IT Carlow has taken the innovative step of launching the first bachelor of science degree in brewing and distilling in Ireland. The course commences in September and is hugely innovative not only for County Carlow but for the country. Not only can students literally spend their college years drinking beer, whiskey and whatever else, they can now be rewarded for doing so where they enrol in this first alcohol-making course. It is a great idea. Not only is there tourism potential and potential for rural Ireland, there is also educational potential, which is very important.

It is important that we support the Bill. As Deputy Alan Kelly said, it is a common-sense Bill. It is the last piece of the jigsaw required to make sure this is a sustainable business for the future and the third leg of the stool required. It is important that a common-sense approach be taken to the Bill which I am glad to support.

4:10 pm

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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With my colleagues, I support the Bill and thank Deputy Alan Kelly for introducing it. There was an interesting article in The Irish Timestwo years ago. The business of producing craft beer has since moved on and advanced. The article mentioned Seamus O'Hara and O'Hara's beer. It looked as far back as 1996, when the outlook for the discerning beer drinker, as described in the article, was very bleak. It recalled that Ireland once had a very proud brewing tradition, with dozens of small breweries dotted throughout the country. By all accounts, in 1850 at the end of the Famine there were 95 breweries, but by 1960 that figure had whittled down to eight. Guinness bought up many of those remaining.

My interest in this debate stems from one of the old brewing companies, the Priory brewing company, which was located in Tallaght village and run by the Dominicans. It was not unusual in days gone by for religious orders to run their own brewing companies. What is interesting is that Partas, a local social enterprise group in Tallaght village, as one of its social enterprises, will launch a new Priory brand of beer in the coming months. The Priory microbrewery will be established in the village and take its name from the Dominican Priory in Tallaght village. This speaks particularly to the point made by Deputy Alan Kelly about playing into the narrative of tourism development. This is not just happening in rural Ireland but in urban Ireland also. Areas of south County Dublin have fledgling and developing tourism potential. This is one particular story, which is why I have an interest in speaking about the topic today. I have another interest which I will mention towards the end of my contribution.

The Irish Timesarticle also discussed the results of what my generation had lived with for 30 or 40 years - "a dreary beer landscape dominated by tasteless imported mass market lagers, unlike any in Europe where the culture of small local breweries has survived". As Deputy Mick Wallace outlined, in the two years since the article was written, while it is still the case in Ireland that there is a drab and dreary presentation of mass produced beer and most pubs and off-licences continue to serve and stock only the major brands, there has been a sea-change which is gaining momentum and accelerating.

It is good to have a healthy debate and positive discussion in the Dáil about drink. The debates about it in the House are justifiably and legitimately centred on the abuse of alcohol by sections of society and its consequences. I could be wrong, but I associate craft beers with discerning responsible drinkers who care, think a little and reflect on the beer they want to drink and know a little about it. As Deputy Mick Wallace knows, this is something we would champion if it was about wine drinkers, but when it comes to beer drinkers, the idea that someone could actually have a degree of discernment in selecting the type of beer he or she wishes to drink is not common. It is welcome that we can have a positive discussion in the Chamber about drink and speak about it in a positive and very refreshing way.

The previous speaker spoke about the brewing company O'Hara's. It is one of the more successful brands. I came across a bottle of O'Hara's beer on a visit to Japan many years ago. The craft beer industry in Ireland only took off when our former colleague, Brian Cowen, introduced tax incentives for microbreweries in 2005. His decision gave the industry the incentive it needed to compete in a world dominated by large brewing conglomerates with very deep pockets. I understand that in 2015, 1,800 people were employed in the brewing industry in Ireland, 200 of whom were employed in microbrewing. In 2017 the number involved has increased to almost 500. It is certainly a burgeoning small industry. Year on year, the craft brewing industry is expanding by between 40% and 50%. It accounts for between 1.5% and 2% of the overall beer market. As Deputy Mick Wallace rightly stated, it still has huge potential. There are a number of regulatory changes that would support the further development of the market. Deputy Alan Kelly alluded to this and referred to it as one of the primary reasons for introducing the Bill. Enabling local microbreweries to sell their products to legitimate and bona fide visitors to their premises is one step in promoting this. A total of 479 people are employed in production in microbreweries.

This is a personal contribution rather than one on behalf of Fianna Fáil. I have not been lobbied in any shape, form or manner on any aspect of the Bill, but I ask the Minister of State to examine the ten-to-six deadline. Microbreweries may be happy with this, but from a personal perspective, I wonder whether in rural Ireland, particularly in the summer months, this a little too punishing a schedule for buses and coaches which may arrive at these premises. They may take a tour but, unlike visitors who arrived ten minutes earlier, they may not taste the product. If microbrewery representatives are happy with the hours of 10 a.m. to 6 p.m., that is fine, but I seek a justification for having a deadline of 6 p.m. With regard to an aspect mentioned by the Minister of State, to be honest, I cannot see people turning up at microbreweries in their droves posing as visitors to have a pint-----

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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The Deputy would be surprised.

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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-----or a glass of spirits, particularly in the afternoon.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Social Democrats)
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At 4 p.m.

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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My time absolutely flew, but I did want to mention Oliver Hughes. My late mother was from west Kerry where we have the great success story that is Dingle gin and whiskey. Reputationally, it is a huge success story and shows what microbreweries can do.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I suspect Members are getting thirsty in listening to all of these references.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Deputy John Lahart could have had a couple of pints during his ten minutes. It might seem strange to my colleagues that somebody who does not consume alcohol is so supportive of the Bill. Apart from the odd time when I drink it for medicinal purposes, I do not consume alcohol. Much of the reason is I spend most of my life driving a vehicle on the road. Someone can no longer go and have a drink and then drive because the laws have become so tight. Every so often something happens which ignites a spark and what Deputy Alan Kelly has done is highly significant. If nurtured and supported properly, it could become a huge factor, not alone in creating employment but also as a tourism product.

In the run-up to the support for this Bill, I visited a brewery in Ballinlough in County Roscommon, owned by Mr. Richard Siberry. It was probably one of the most fascinating journeys that I made in my constituency for some time. It is amazing to go into these small breweries and see how they operate. The small number of people who work there are very enthusiastic. I welcome people from the various breweries from throughout the country. They are not looking for open-ended hours to serve beer. The Bill is very tight and Deputy Kelly has done well. They will only sell their own products on the premises. They are so excited that this could become reality. They would be able to sell the products and maybe discuss it over a cup of coffee. I believe that they will become major tourist attractions.

There are one or two breweries, or maybe more, in most counties now. They all seem to be working quite successfully. Deputy Kelly mentioned that 439 jobs have been created already at these small breweries in the Twenty-six Counties. That is quite a significant figure. If any of us found out in our constituency tomorrow that some employer was going to come in and create between 400 and 500 jobs, there would be céad míle fáilte and a sense that it was fantastic. This brewing business is in its infancy. I believe that in a few years, with proper support from the State for this type of development, those figures could go to 1,500 or 2,000. I believe it can become a significant employer and that it will not do any damage to pubs. I know a number of pubs that are distributing and selling those craft beers. I do not think there is going to be any conflict there. There is going to be no difficulty if breweries close at a certain time in the evening.

There is an explosion in the number of these breweries throughout the country. I acknowledge what Deputy Lahart said about former Deputy Brian Cowen and what he did for the business back in 2005. There is no reason all those breweries cannot flourish. We have our local enterprise offices, LEOs, in every county, which provide mentoring. We have supports that were never really there. The enthusiasm that is coming from the people who are running these little breweries gives a feel-good factor. The Bill just removes a significant barrier that needs to be taken away.

This is a great idea. I admire the people who are championing it. I admire the way they have gone to their Deputies and not lobbied, but just let us know what exactly is going on and what is happening in the premises. I would say to anyone who has not been to one of these small breweries to go and take in the enthusiasm and listen to the people. When I visited Richard's brewery in Ballinlough in Roscommon, he took me into this little cold room and pointed to three pallets of beer going to America, which were his first export lot. He was so excited about that. Roscommon people were always known as the sheep stealers. I do not ever accept that title. One of Richard's craft beers is entitled Sheep Stealer. I do not mind. As long as he sells enough bottles of Sheep Stealer and creates his little tourism hub and more employment, I will be happy and I am supportive, as is my party, of this Bill from Deputy Kelly.

4:20 pm

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail)
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I too commend Deputy Kelly on bringing this Bill before this House. I am delighted to learn that he has the full backing of Fáilte Ireland.

As late as yesterday evening, I had the honour of being invited to the Jameson distillery on Bow Street along with Deputy Rock. We went on a tour of the history of the Jameson distillery to find out how its products are made and to go to a tasting session. We were brought into the shop afterwards to be shown the finished product that is for sale. I talked to people there, who are seeing increased numbers of people going through the premises, with the distillery having recently been refurbished and reopened. I am delighted that we can get some of these people down into rural Ireland and that is why I support this Bill. We have seen phenomenal growth of microbreweries and distilleries and I am delighted that Deputy Kelly has mentioned that he will probably extend the terms of reference in order that more operators can avail of this opportunity. Allowing on-site sale will help make these businesses more sustainable and, it is hoped, create more jobs down the road. I wholeheartedly support the rural pub industry and trade. I am delighted that there are restrictions on the opening hours of these operations. Even the daytime trading would be good enough to make it sustainable and viable. It is to be hoped the people who call at these businesses will also call into other businesses and attractions in those localities. That is why I would advise support of this Bill.

Another issue here is the tillage sector, as mentioned by Deputy Deering. We see the current crisis with prices for cereals. We would need more grain for more breweries, which would help to make the farming sector more sustainable. My own town, Mitchelstown, has a successful microbrewery called Eight Degrees, which is trading successfully. It feels that if it can get the tourists calling, it will help exports and help the business grow. We call to the wineries if we go abroad. We go into the winery or the farm, through the mechanism and we bring home a few bottles. We will probably go to the local off-licence or shop and see if we can find that wine again if we like it. That is why people leave their names in these businesses. The further people travel, the further we can export some of these products.

I thank my constituency colleague, the Minister of State, Deputy David Stanton, for speaking on behalf of the Government in support of this Bill. It is to be hoped we can bring it through Committee Stage as soon as possible, as Deputy Kelly requested. It is important we get this Bill through the Dáil as soon as possible to get these businesses up and running, to be stronger and have a firmer footing in the rural communities where they operate.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Social Democrats)
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I thank Deputy Kelly for introducing this Bill to the House. Fianna Fáil will be supporting the Bill. On a personal note, as a great fan of craft beer, I am delighted to be speaking on it and to be supporting the beer, or supporting the Bill. I beg your pardon. A Freudian slip.

(Interruptions).

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Social Democrats)
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Unlike vineyard owners and wine producers in France, craft brewers and distillers in Ireland are not allowed to sell their products on site. This Bill allows for the sale of the product on site, which is great news, because the craft brewing industry in Ireland is going from strength to strength and shows little sign of slowing down. Turnover has increased a staggering 11-fold between 2011 and 2016, and there is real potential for further development of the craft beer industry, in both numbers and output. An increase in the number of production breweries to more than 100 and a fivefold increase in output is possible over the longer term. There are about 90 microbreweries in Ireland at the moment. Any sober analysis of the industry would conclude that the microbreweries of Wicklow are outstanding and, it would be argued, probably the best in the country. I am proud to be able to point to that from personal experience.

Wicklow Wolf in Bray is going from strength to strength. Manor Brewing Company in Manor Kilbride was the winner of the Alltech brews award. Wicklow Brewery in Redcross has won a number of awards since being established about three years ago. Brother Brewing in Kilcoole is the all-Ireland craft beer multi-award winners. That is to name but a few. All these are successful businesses and many are already engaged in running tours of their breweries. This Bill will empower them top sell their product at the point of origin, which makes for a much more powerful and eminently sensible tourist offering in a brewery.

While Fianna Fáil supports the Bill, and I am personally delighted to do so, Ireland has a long way to go in ensuring that alcohol consumption is reduced. The binge-drinking culture must be dealt with along with the serious negative health effects we can see around the country.

The Bill before us, however, would allow brewers to sell their product to those visiting brewery sites. It seems to be a logical and sensible proposal, which I am delighted to support.

4:30 pm

Photo of James LawlessJames Lawless (Kildare North, Fianna Fail)
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My party will be supporting the Bill and I am delighted to do so also. The legislation is pro-enterprise and favours small local businesses. Like Deputy Lahart, I wish to acknowledge the foresight of the former Taoiseach and Uachtarán of Fianna Fáil, Brian Cowen, who in 2005, when he was Minister for Finance, included the microbrewery tax credit in the Finance Bill. It goes to show that great things can grow from small seeds.

According to the latest figures, 479 people are employed in the microcraft brewing industry and 167 jobs were created in the sector last year. It is an industry that has taken off, capturing the public imagination, as well as people's taste buds and the entrepreneurial spirit.

This far-sighted, sensible and positive Bill is a tribute to Deputy Alan Kelly. I spoke to him about it in some detail before Christmas when he introduced it on First Stage. I also wish to pay tribute to the local entrepreneurs who have brought their enterprises to this stage. Microbreweries are trading successfully and enjoying a renaissance given the support they attract from the public. Their success is almost a problem because they are limited in terms of supply.

I see what has happened in my constituency of Kildare North where there has been a virtual explosion of interest in craft beer. The Kildare Brewing Company is coming to my own local, Lock 13, in Sallins. I am also familiar with Trouble Brewing in Kill, the Rye River Brewing Company in Celbridge and Kelly's Mountain Brew in Clane. Their products have different tastes and textures, but are all doing extremely well both locally and in the wider market. Such small breweries face a common quandary, however, in that they cannot sell their products on the premises. This Bill seeks to address that difficulty.

Many parts of the country are facing challenges because town centre retail outlets are struggling. The hospitality and tourism sectors, however, are booming. This legislation could breathe new life into those sectors, thus fulfilling their potential for further growth.

I am most familiar with the Lock 13 and Kildare Brewing Company example, which sits on the banks of the Grand Canal in Sallins. We are attempting to build a greenway there to attract tourists who wish to cycle or walk along the canal. Once this Bill is enacted, visitors will be able to stop at the brewery, take a tour, sample craft beer, purchase supplies and then cycle on their merry way back up to Dublin or elsewhere. It is a 100% winning formula which supports local industry and promotes tourism, as well as involving all the amenities the area has to offer. That in itself is a fantastic initiative.

In the past, beer was the poor cousin of wine and spirits but that culture is beginning to change. Some weekend newspapers now carry columns on beer, including notes on taste and other aspects of these beverages. Beer is thus being subjected to the same degree of forensic investigation that wines have been for many decades.

It is good to celebrate food and drink, including emporiums, markets and artisan stalls, which can add so much to the local economy. Such services can make an area or town unique, with local produce that can be enjoyed, tasted, savoured and sampled. This new found sophistication in culinary items and drinks is to be welcomed.

I have attended brew nights when brewers speak on the various products that are available for sampling. In addition, brewers are investing in training their staff and this trend can only increase with visitors arriving in breweries as a result of this Bill when it is, hopefully, passed. It all provides for a higher order of experience both for customers and staff who can advise on the different types of beer, their ingredients and brewing processes. I welcome that extension to the craft beer industry which is similar to what has happened in the wine sector for many years.

Amsterdam has its Heineken museum, while Edinburgh has the whisky museum which I have had the pleasure of visiting. Dublin is most famous for the Guinness Hop Store which is a fantastic tourism site that attracts thousands of visitors every day.

This legislation will open up added potential around the country featuring visits to many breweries in many counties. Some 23 of the 26 counties are currently hosting microbreweries. There are four in my own constituency and probably a few more in south Kildare. The Ceann Comhairle might be familiar with them. I am sure that many more will emerge as this idea takes off.

The Bill is a common sense measure which ticks a number of boxes. Essentially it is pro-enterprise, pro-tourism and pro-indigenous development. The majority of ingredients used are sourced locally, thus providing local employment. There is also an export potential and local enterprise offices are involved in those opportunities.

I commend Deputy Kelly for bringing this Bill to Second Stage. I look forward to the microbrewing industry taking off as a result of the legislation being passed in due course. If I were to take a rare day off I might even sample one of the microbreweries myself.

Photo of Brendan  RyanBrendan Ryan (Dublin Fingal, Labour)
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I congratulate Deputy Kelly for bringing this Bill before the House. He did so in consultation with the operators in the business. I welcome them to the Visitors Gallery today. Many speakers in this debate have congratulated Deputy Kelly although his chair is empty. That is because he is attending the Committee of Public Accounts this afternoon. He has passed on his apologies for his absence.

The craft beer sector is booming with an eleven-fold increase in annual turnover since 2011. There has been an almost 30% increase in production by micro-breweries last year. However, those producing beer, cider and spirits are prevented from selling those products on their own premises. The Bill before us seeks to address that anomaly and would remove that barrier for these important Irish businesses which are operating in a growing sector.

Craft brewing and distilling employ around 1,000 people directly and indirectly. They operate in nearly every county, including one in Lusk in my own constituency. I am referring to Mr. David Llewellyn who describes himself as a fruit grower, wine maker, cider maker and vinegar maker. That description outlines the potential for where this business could go.

Many microbrewers who see the tourist potential want to open visitor centres to attract more customers for their products.

For those who do, or who have done so, current legislation requires that they either have a pub licence or an off-licence to sell their produce. This is obviously overly restrictive. The legislation before us today is simply common sense, as so many people have said. The simple objective is to remove a regulatory barrier to growth and support an expanding industry here in Ireland.

It will have a very positive impact on tourism around the country, increasing the number of tourist "things to do locally" in nearly every region and craft beer tourism has a huge potential which will be enhanced by the passing of this legislation. The craft brewers themselves have highlighted this potential in a recent report for Bord Bia and the Independent Craft Brewers of Ireland. I note the words of support from individuals and groups right around the House, including from the Minister of State, and I welcome that support. As Deputy Kelly himself noted, can a situation be imagined in Italy, France or Spain where tourists visiting vineyards could not buy a product at the end of it?

The Bill is, however, restrictive in its detail. It restricts sales to between 10 a.m. and 6 p.m. Sales can only be of products brewed on site and fines would ensue to ensure owners do not sell alcohol that is not brewed on site. There is also a clause preventing the licence holders applying for the types of exemptions and extensions to opening hours that pubs and clubs can apply for. Sales on Good Friday and Christmas Day are also disallowed, as they are for pubs and off-licences. I anticipate we will have a further debate on that at some stage in the future, particularly in regard to Good Friday, but that is for another day.

I will not repeat all of the statistics that Deputy Kelly and others have produced, but I would like to pick out some highlights and points of note from the industry itself. There are around 90 microbreweries operating in the Republic, of which 62 are production microbreweries and at least 28 are contracting companies. The number of microbreweries has more than quadrupled since 2012. Thirteen new production microbreweries commenced production in 2015 compared with a total of 20 in the previous year. This highlights the phenomenal growth in new enterprises in the last two years. Thirty-three of the 62 production breweries referred to commenced production in 2014-2015. The sector has recently been in high growth. The total turnover of craft beer producers in 2015 is estimated at €40 million and for 2016 is projected to be €59 million. In the five years since 2011, turnover has increased elevenfold.

These are powerful statistics. This is phenomenal growth. It is time to let this industry off the leash. The players themselves see the potential for growth. We need to help them along part of the way by the passing of this modest and simple legislation and the case for the change in the law needs no further argument. Everybody has made the case. I think it is accepted right across the board. I look forward to the passing of this Bill and its speedy passage through Committee and all Stages in the Houses of the Oireachtas.

I thank the Minister of State for his contribution at the beginning in which he indicated the Government will not oppose the Bill. While that is very commendable, I would really like to see the Minister of State and the Government grasping this, running with it and seeing its potential, rather than simply not opposing it. I recognise the gaps the Minister of State has identified in terms of risks of potential abuses, the need for court certificates, the potential impact on young persons, planning issues and fire certificates. All those are valid issues to raise but accepting and not opposing the Bill is positive for what Members are doing today. It is a statement that the Government will not oppose it because it is not perfect, it knows the legislation can be improved and that can be done on Committee Stage. I would ask the Minister of State to do so quickly. The people in the Gallery are waiting for action and I hope the Minister of State can deliver.

4:40 pm

Photo of Noel RockNoel Rock (Dublin North West, Fine Gael)
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I thank the Ceann Comhairle for affording me a little bit of time to speak on this Bill. First, I welcome the various brewers who are here in the Gallery today, some of whom I got to meet thanks to a talk Deputy Kelly organised to inform Members of the House on this important Bill. I will open by paying tribute to one of the first pioneers of craft brewing in Ireland, a gentleman called Oliver Hughes, who unfortunately passed away a few months ago. He was the founder of the Porterhouse chain. Members might have seen its pubs based throughout Dublin or indeed its beer stocked in a number of outlets and supermarkets throughout the country. Oliver sadly passed away but I know he would have been proud of this Bill and of the progress that the industry is making in Ireland.

The industry is making great strides and while it currently has 2% of market share, it is growing exponentially year on year and one can see that the ceiling is quite a bit away. If one looks at the USA by way of example, the craft beer industry controls approximately 13% of the market by volume but approximately 20% of the market by value. This really illustrates the high-value product these producers are putting together. On employment, the statistic to which I believe Deputy Kelly made reference earlier that craft brewers in Ireland combined now employ more individuals than the two biggest breweries goes to show how much labour goes into this product.

On entering the Chamber, I noted that on the Fianna Fáil bench opposite is Deputy O'Keeffe from Cork, who can be clearly associated with the constituency from which Eight Degrees Brewing comes, as can the Minister of State sitting in front of me. Similarly, Deputy Donnelly can be associated with the constituency from which Wicklow Wolf comes and Deputy Lawless can be associated with the constituency from which Trouble Brewing comes. It goes to show that, much like Deputies, craft beers are very much geographically associated. One can very clearly see how the idea of craft beer tourism or something akin to the whiskey trail could take off in Ireland. I think the Bill is prescient in that sense, in that it can spark the idea of a real tourism industry in Ireland in a way that we have not necessarily seen before. I think that is important.

Even though I have referenced Trouble Brewing in this speech already, I think there is anything but trouble brewing in the Chamber today. We can quite clearly see that all parties are effectively singing off the same hymn sheet. Tribute should be paid to both Deputy Kelly for having the prescience to put together this Bill - it is a very good Bill which I wish I had thought of myself - but also to the former uachtarán of Fianna Fáil, Brian Cowen, who had the prescience to put together the tax package that allowed the craft beer industry in Ireland to grow. The previous Government enhanced those incentives year on year, effectively expanding the hectolitre capacity under which craft brewers could operate with a slight tax exemption. That was important.

Scale is important for this industry. There are a lot of brewers right around the country who are trying to operate, grow and get to a point where they can create their product and, more importantly, export their product. We want to support that where at all possible. Ireland has a great reputation as a fantastic food and drink exporter. I think in the years ahead we are going to that reputation enhanced to include being a fantastic craft beer exporter as well. I fully support anybody who has the get-up-and-go to establish a brewery and to try their best to export their product.

In terms of tourism and helping the scale of the craft brewing industry, this is a great thing. In terms of helping employment, and rural employment in particular, this is a fantastic thing. The spread of breweries around the country is exemplary. As was referenced earlier, there are only three counties without craft breweries right now. I could practically guarantee that were Members to have this discussion in a year's time, those three counties would be filled in as well.

Ultimately, this is positive and I fully support it. I look forward to seeing it implemented as soon as possible and I pay tribute once again to Deputy Kelly and to those people who are doing this work and making it happen day in and day out.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I have listened carefully to all the points made by Deputy Kelly and others during this debate and as I sat here I was thinking about the town of Cobh in my own constituency, to be parochial, which is to be visited by 67 cruise liners this year. There were 136,000 visitors to the Jameson Experience in Midleton last year. That number will increase again in the current year. The whole tourism side of this area is huge and growing. I contend that this particular Bill brought forward by Deputy Kelly will add to the tourism potential.

Deputy Lahart earlier raised issues with respect to late opening. As far as I am aware, the microbrewers have not requested this.

My understanding is that work would finish at 6 p.m. and late opening would conflict with existing licensed premises, which would not be good. It might encourage other activities, such as parties, to occur in microbreweries, even though I do not think that is the intention. A finish time of 6 p.m. seems reasonable.

Reference was made to antisocial behaviour. Courts will be involved in granting licences and people will have an opportunity to object at the beginning of the process if they so wish, which is important to note.

As I said at the outset, the Government will not oppose the Bill but will table appropriate amendments on Committee Stage in order to ensure that, as far as possible, the Bill will not have any unforeseen or undesirable consequences that would not serve the interests of the sector or those who work in it. It is a common-sense Bill.

Budget 2017 provided upfront relief for microbreweries. Under that relief, such a brewery could produce up to 20,000 hl of product and the excise duty would be 50% of the normal rate. The previous budget increased the limit for microbreweries to 30,000 hl. The Government has been very supportive of the sector. The sector has grown and has now reached a point where it is seeking some extra assistance.

Visitors and tourists are also looking for a change. As colleagues said, anyone visiting a winery or brewery on the continent or elsewhere can buy product. It is something people expect, and those who visit Ireland are puzzled that they cannot do so. Everybody who has spoken has supported the Bill. It will solve that problem and allow such sales to take place legally.

I again thank everyone who contributed and also Deputy Kelly for bringing forward the Bill.

4:50 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I join others in thanking Deputy Kelly for his initiative in bringing forward the Bill. There is a wide level of agreement in the House today. Unlike other Bills which have come before the House and have been agreed, but have then gone into the equivalent of a legislative deep-freeze, I ask that Minister of State, Deputy Stanton, use his good offices to ensure that this legislation is passed. It is a fairly simple Bill and there has been a very good debate on its provisions.

The proposal is welcomed by those involved in microbreweries and microdistilleries, but also among the general public. Many people in Ireland are very used to seeing advertisements when they holiday abroad promoting visits to vineyards and wine estates. In parts of eastern Europe and Germany tours of breweries are part of the tourism offer. It is important to recognise that, given the development of microbrewing and distilling, there is a significant additional offering for tourists on wet or nice days in Ireland. Unfortunately, from a tourism point of view we have our wet days. Breweries and distilleries are interesting places to visit, and people can learn about local history including agriculture and production. The Guinness Storehouse is very popular and refers to the history of brewing. I understand it is probably the number one visitor attraction Ireland. The Wild Atlantic Way has captured the imagination of European and American tourists. A complimentary number of microbreweries taking advantage of that tourism exposure would be very positive.

I associate many people involved in craft brewing as being of the hipster generation, particularly the men involved. It is interesting to see younger people, especially men, taking a significant interest in brewing beer. That can lead to others becoming involved in craft brewing.

Many speakers referred to rural areas. Given that all of our large cities have very long brewing and distilling traditions, the sectors have taken off in Dublin and other cities, especially those which have a significant tourism industry. I hope that following the development of the craft brewing sector some of the crafts associated with the sector which have disappeared, such as coopers who make barrels, return.

I have visited quite a number of craft breweries and distilleries. A large amount of attention has gone into their design so that local or other visitors have a very pleasant experience. The Bill adds the legal capacity to serve people alcohol in that environment, which makes a lot of sense.

Distilleries, breweries and vineyards in other countries are not just about drinking. Rather, they often involve eating formally or informally. Such as visits are very much part of pleasant experiences for local people and visitors.

Given the kind of work that Bord Bia has done in recent times, there is a lot of scope for having a vibrant industry. A couple of years ago, some economic and business commentators began to wonder whether the sector had peaked. I do not think that is so. There is capacity to have a sustainable industry. An attractive tax package is in place, as stated by the Minister of State, which has been important in consolidating the development of the industry.

In terms of craft distilleries, I am delighted that a number of the most prominent distillers are women, including the craft distillery in Midleton. That example has been followed on the craft brewery side.

I ask that the Government not allow the Bill to gather dust on a shelf. It would be very helpful if it could be passed within a relatively short period. Anything that adds to the capacity of a vibrant indigenous business to create job satisfaction for those involved in the industry is positive.

There is significant investment in the sector. The Bill will help to give a stronger base to the sector, given that it will be possible to serve product on premises within designated times. That will make it easier for promoters to access appropriate finance.

5 o’clock

Craft beers tend to be slightly more expensive than the traditional mass produced beers and, in a certain sense, that is what has partly led to the link with the preparation of fine foods. In Stoneybatter in Dublin, for instance, for a long number of years we have had Mulligan's, which was a standard sawdust pub. Nowadays it is largely a restaurant that specialises in serving craft beers and one that I am happy to say seems to be extremely popular. This example has been replicated in pretty much every county in Ireland. When we think of counties such as Carlow, which has many fine tourism attractions, something such as craft brewing and distilling adds an extra dimension.

I congratulate Deputy Alan Kelly again for introducing the Bill and note that what is contained in it is carefully crafted. The 6 p.m. deadline ensures that everything will be run properly. It also means that these will not become large event areas and that the type of growth provided for will be consistent with the way the industry, which is smaller in scale, has developed. Pearse Lyons and Deirdre Lyons, who have been so involved in Alltech, are much associated in terms of their origin with Dublin city centre. Their efforts in terms of restoring the old church on James's Street and promoting a wider knowledge - going back a few years - in terms of craft brewing competitions and so on have been extremely helpful. It is to be hoped that all this craft brewing will also help farmers in terms of demand for their grains. On behalf of the Labour Party, I thank the Minister of State and everyone else who has contributed to the positive tone of today's debate. We look forward to returning shortly on Committee Stage and to seeing the Bill enacted.

Question put and agreed to.