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THE VFI WELCOMES BUDGET REDUCTION ON ALCOHOL EXCISE

10-December-2009

Val Hanley, President of the VFI, said, "We welcome the government's decision to decrease excise duty on alcohol.

 "The amount of revenue this country has been losing to the North is unsustainable and this reduction in excise will go some way to encouraging consumers to keep their spend in the Republic which should help stimulate growth and jobs not just in the hospitality industry, but across the whole retail sector.

 "It has been no secret that one of the main attractions for shoppers heading north of the border was the significant difference in the price of alcohol in the two jurisdictions. This practical move shows that the government intends to provide stimulus to the economy despite the extremely difficult times we are in. The reduction in excise will hopefully reduce the price differential to such a point that it is no longer worthwhile to travel outside the Republic to save money. This should increase our competitiveness and keep revenue in the country.

"The majority of the 90,000 people working in the drinks industry are employed in the pub trade and the Irish pub is also a major tourist attraction. Our prices must be competitive to sustain employment levels and encourage visitors into the country.

"While price is the sole domain of each individual publican, our expectation is that consumers will benefit from these measures without delay."