Patricia Callan, Drinks Ireland director, says the new international standards are a targeted response to the fact that consumers are increasingly buying alcohol online
The Alcoholic Beverage Federation of Ireland has warned of the unintended consequences of the government's plan to introduce minimum unit pricing on alcohol products, especially on cross-border trade with Northern Ireland.
Following confirmation that minimum unit pricing for alcohol products will come into effect within the next year, the ABFI has released a statement warning against the unintended consequences of the move.
“The drinks industry is in favour of tackling the sale of cheap alcohol to reduce misuse,” said the representative and lobby group director Patricia Callan. “However, the Cabinet already made a decision that the introduction of minimum unit pricing should only be done in conjunction with Northern Ireland, which means the Cabinet would need to reverse this previous decision to now go ahead on its own.”
The reason for the original Cabinet decision is that the introduction of MUP in the Republic of Ireland, ahead of Northern Ireland, will result in an even more dramatic price differential on alcohol products sold either side of the border and will lead to an unsustainable position for border businesses in particular. The Republic of Ireland already has the second highest prices for alcohol in the EU, according to the latest Eurostat report. “As An Taoiseach, Leo Varadkar recently commented in the Dáil,” said Callan, “we will achieve nothing if all we are to do is encourage people to cross the border to buy alcohol in Northern Ireland. That does nothing for their health and it damages retailers in counties south of the border.
“The consequences of such a policy change must also be considered in the context of the ongoing uncertainty about Brexit. MUP combined with a “no-Deal Brexit” is likely to lead to massive exchequer losses and to a significant rise in cross-border smuggling and illicit alcohol sales,” she added.
The ABFI boss said the government should wait for clarity on Brexit and the reestablishment of a functioning Northern Ireland Executive before proceeding with the implementation of MUP on the island of Ireland.
“In the interim,” Callan said, “a ban on below-cost selling should be introduced to tackle the sale of cheap alcohol in a quick and effective manner. This would ensure alcohol is not sold as a loss leader and would end the deep discounting that distorts the market.”
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies. Read More
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
Fans 0
Followers