Once again, wine is singled out for some unwarranted treatment in the Budget, writes John Wilson
THE RECENT BUDGET brought me straight back to the 1980s. Then, wine was one of the most heavily-taxed commodities in the country. Not surprisingly, few people imbibed. For some, wine drinking was seen as suspect, foreign and almost unpatriotic - after all, what was wrong with a pint of plain and a ball of malt? This prejudice was even stronger among the Irish male. Was there not something girly about drinking wine?
Wealthy businessmen, conspicuous consumers in most countries, confirmed their modest upbringing by drinking a pint with the lads. It was acceptable to have a large house in Foxrock, Louis Copeland suits and a brand new BMW or Merc, but if you enjoyed a glass of wine, obviously you had lost touch with your roots.
Times have changed, but not too much. Now the Minister for Finance has singled out wine for his attentions, accepting the arguments of strong interest groups such as the publicans and multinational spirit and beer companies. I am very partial to a pint or two myself, although I drink spirits sparingly. However, I do object to wine being singled out for punitive treatment.
This is not a health measure - it is purely to raise tax. Wine is not responsible for our binge-drinking culture. It can certainly be abused, but I believe that a modest consumption of wine, particularly with food, is part of a healthy lifestyle. It is fundamental to the often-quoted European style of drinking. Raising duty on one product to levels unheard of in the rest of Europe is unlikely to encourage sensible drinking.
In the 1990s, duties on wine remained largely unchanged. As a result, there was a huge increase in wine consumption (and commensurate increase in government revenue), although we still lag well behind most of Europe. Our duties were already the highest in the EU. Now the difference is even greater.
It is still unclear what will happen to wine prices. As with any business, a wine importer calculates his profit margin on the sum of his costs, including the wine, shipping, warehousing and duty. The retailer does the same. We may see increases as high as 12 per cent on some less expensive wines. To make matters more complicated, VAT will increase by half a per cent on December 1st.
At the time of writing, few of the major retailers were prepared to comment. Some had already increased their prices by 50 cent, holding off further rises until after Christmas. Others were undecided.
The duty on wine now stands at €2.46 per bottle; the Government also charges VAT at 21 per cent (soon to be 21.5 per cent) on top of the retail price. As things stand today, if you pay €10 for a bottle of wine, the government will take €4.20 of that, over 40 per cent of the price. jwilson@irish-times.ie
Not sure what wines to buy and serve this Christmas?
Colm McCann, sommelier and wine lecturer at Ballymaloe House has teamed up with wine guru John McDonnell to offer a one-day course on wines for the festive season in Ballymaloe Cookery School on December 13th. Both presenters are knowledgeable, enthusiastic and great fun. www.ballymaloe.ie
Thinking about what to get the wine lover in your life for Christmas? Mary Dowey returns to Ballymaloe for her wine weekends on February 20th-22nd, and April 24th-26th. These courses, recently listed in the top 10 wine courses by the Telegraphnewspaper, are a great way to learn in a very relaxed atmosphere. Tel: 021-4646785, www.cookingisfun.ie
One of Ireland's leading lecturers, Mary Gaynor, is running a wine appreciation class in The Mill, Maynooth, starting on November 3rd. This would be perfect for the enthusiastic beginner. See www.millwinecellar.ie