NOffLA calls on Government to regulate alcohol sector to prevent further business closures and job losses

The National Off-Licence Association NOffLA has today (15 October) expressed its deep disappointment over the Government’s decision to increase excise duty and has highlighted its fear for the survival of the independent off-licence sector.

NOffLA, which represents 315 independent community-based specialist off-licences across Ireland, has witnessed 11 business closures and almost 60 job losses in the last eight months.

Speaking about the increase in excise duty on alcohol, Chairperson of NOffLA, Evelyn Jones, said, “This is an extremely irresponsible decision by Government which will put independent off-licences under severe pressure, reignite out of State retailing and lead to another increase in illicit alcohol trading.

Alcohol taxes in Ireland are now amongst the highest in Europe. Prior to this budget, we already had the highest taxed for wine, the second highest for cider, third highest for spirits and the fourth highest for beer. As a result of Budget 2013, Excise on wine was 576% above the EU average.

According to Jones, the government may be in breach of EU competition law due to the rates of excise on alcohol products; “The Lisbon Treaty clearly states that no EU country can impose internal taxes on imports which would afford indirect protection to other products - this is exactly what is happening in Ireland with wine.

“The significant increases in taxation on wine has led to a situation where only industrially produced wine can be found at the lower price points. The quality of the product is being reduced because of extremely high taxes that are completely out of sync with our European neighbours. Consider a standard €8.00 bottle of wine in Ireland. Over half of this price is attributable to tax (excise and VAT), with only €0.12 of the price actually accountable to the wine itself after today’s increase.

“The government is using tax as a means to reform Ireland’s relationship with alcohol. However, what is really happening is that people are just consuming poorer qualities of alcohol because of the huge tax content. We call on Minister Alex White to bring forward his proposals to regulate the alcohol sector. Our sector hopes these measures will address the irresponsible sale and consumption of alcohol in Ireland”, concluded Jones.

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For further information:

Karen White – Hume Brophy on behalf of NOffLA – 086 771 3326

Paul Gordon – Hume Brophy on behalf of NOffLA – 086 012 1601