Government plans to call time on era of cheap alcohol

The move will call time on loss-leading alcohol promotions and cut-price deals which have been widely blamed for fuelling binge drinking and anti-social problems.

A spokesman for Minister for Justice Dermot Ahern yesterday confirmed that the regulations were being prepared will come into force in the near future. The cost of alcohol has fallen significantly in recent years due mainly to the abolition of the Groceries Order and the liberalisation of liquor licensing, which allows retailers to obtain beer and wine licences from the Revenue Commissioners.

Between 2001 and 2007 there has been an increase of almost 70 per cent in the number of off-licences and shops selling alcohol, while the price of alcohol in supermarkets has been falling. A bottle of beer now retails for as little as €0.75 in many outlets, cheaper than some brands of bottled water.

While supermarkets have been using cheap alcohol to attract shoppers, this aggressive marketing has caused controversy. Tesco, for example, was widely criticised for its St Patrick’s Day promotion of 48 cans of beer for €24 in recent years.

The regulations will allow for the prohibition of promotions aimed at selling alcohol at a reduced price, or free of charge, on the purchase of any quantity of alcohol or other product. They also allow for the prohibition of events or activities which are “intended or likely to encourage excessive consumption of alcohol”.

Measures to prohibit below-cost selling of alcohol were flagged last year, but it has taken several months for the European Commission to ensure they comply with the EU’s internal market rules. A spokesman for Mr Ahern said the period during which other member states may raise questions or submit observations on the draft regulations has recently expired. As no comments were received, officials are moving to finalise the text of the regulations.

The move was put forward as part of a series of measures last year aimed at curbing binge drinking and tackling alcohol-related public disorder. These laws included restrictions on the display of alcohol in shops, a reductions in the opening hours of off-licences and on-the-spot fines to combat alcohol-related public disorder. While the new measures will help curtail the supply of cheap alcohol, they fall short of demands by some groups which want even stricter controls on alcohol pricing. Public health experts such as Prof Joe Barry of Trinity College Dublin also want a mandatory code of conduct for drinks producers and retailers, as well as labelling of alcohol containers with details of the outlet of sale.

Source: Carl O'Brien, The Irish Times, 06/04/2009