Written answers

Thursday, 4 November 2010

Department of Enterprise, Trade and Innovation

Sale of Alcohol

2:00 pm

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Question 270: To ask the Minister for Enterprise, Trade and Innovation the position regarding the practice of some supermarkets in selling alcohol at exceptionally low price levels; if below cost selling is permitted; if there is any policing of or inquiries into same; if the relevant price is the invoiced price or if transportation, warehousing, profit are considered to judge the base price; if there are health concerns regarding the level of alcohol now being consumed at home; if a minimum floor price for the sale of alcohol can be set to control consumption, improve tax take and provide fair competition with pubs; if trends in this direction in Scotland are being monitored; if an all-Ireland policy can be implemented. [40903/10]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The sale of alcohol is essentially regulated by the liquor licensing laws, which are the policy responsibility of the Minister for Justice and Law Reform and I have no direct function in this matter. The use of aggressive pricing strategies in any business is a legitimate marketing tool and is the normal outcome of the competitive process. Low cost and below cost selling by a retailer, including an off-licence, is not of itself an offence unless it involves abuse of a dominant position. A determination on whether a retailer is abusing a dominant position in the marketplace would necessitate a comprehensive investigation by the Competition Authority.

The Authority is the independent statutory body responsible for enforcing competition law in the State and complaints of any alleged anti-competitive practice should be referred to it.

Health concerns in relation to levels of alcohol consumption are primarily a matter for the Minister for Health and Children. In 2009, the Government approved the development of a combined national substance misuse strategy to cover both alcohol and drugs. The National Substance Misuse Strategy Steering Group, under the joint chairmanship of the Department of Health and Children (www.dohc.ie) and the Department of Community, Equality and Gaeltacht Affairs (www.pobail.ie) has been tasked with developing the alcohol portion of the combined national substance misuse strategy based on proven methods to reduce alcohol related harm.

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