Michael McCarthy (Cork South West, Labour)
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149. To ask the Minister for Finance to outline his views on correspondence (details supplied) regarding excise duty on alcohol; and if he will make a statement on the matter. [37678/14]

Michael Noonan (Limerick City, Fine Gael)
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The correspondence attached to the Deputy's question makes a number of points in relation to excise duty increases in Budgets 2013 and 2014.  The correspondence also refers to the incentive for cross-border shopping and the risks to tourism resulting from increases in excise on alcohol.

The increases to excise duty on alcohol in Budgets 2013 and 2014 must be seen firstly in the context of the Government's need to raise revenue to provide services.  Secondly, these increases should not be viewed in isolation but together with the history of excise rates on alcohol in Ireland.  To this end I would remind the Deputy that excise duties on alcohol were reduced significantly in Budget 2010 and also that the rate of duty on spirits and beer remained largely unchanged between 2002 and 2009.  It should also be noted that the excise, as a proportion of the pint, is lower now in 2014 than it was 10 years ago.

In relation to the points raised about tourism, I would point out that in July 2011 I introduced a 9% reduced VAT rate for tourism related services as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. The 9% rate applies to the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering.  I also provided for the abolition of the Air Travel Tax in Budget 2014 to further assist the tourism sector.

In relation to cross-border shopping, the most recent cross-border price survey carried out by the Revenue Commissioners in July 2014 can be found online on the Revenue website. The survey compares prices in the off-trade rather than the on-trade, and does not support the contention of the correspondence in question that a price difference of 35% in respect of beer, wine and spirits exists between prices in Northern Ireland and the State.