The Taoiseach, Mr Ahern today rejected calls to cut excise duty on alcohol.
Publicans claim they are being forced to knock up to 50 cent off the price of a pint as a result of a downturn in business.
The Vintners Federation of Ireland (VFI) claims the smoking ban has triggered a huge drop in sales and is concerned business will continue to deteriorate in the cold winter months.
It made fresh calls on the Government to meet them half way and reduce excise duty by 20 cent a pint, pointing out that Ireland's wine tax is the highest in the EU and beer tax is the second highest.
But Mr Ahern hinted there was little chance excise duty would be cut.
He said raising revenue should not be the sole concern.
"Before we joined the euro we only put on one or two pence and we have done nothing since," he said.
The Taoiseach said he believed the industry was right to reduce its prices and that it had the scope to do so.
"The state and the taxpayer have been quite generous in not hitting that trade in the last decade," he claimed.
"In most businesses if your market share is dropping you move to competitiveness to rock the boat. That has not been the practice of the licensed trade over the years."
President of the VFI, Mr Seamus O'Donoghue, expressed disappointment at his reaction. "Its very easy for the Taoiseach to point the finger at publicans and say it" their fault," he said. "But certain bars have seen a reduction in trade of up to 30 per cent. This is a direct result of the smoking ban and the 9pm watershed for youngsters and when jobs are lost there will be a bigger burden on the Government and on the unemployment sector."
In a further blow to the industry, Mr Ahern reiterated his commitment to reducing licensing hours.
He claimed it had never been his intention to have clubs still serving drinks long into the early hours and said it should not be condoned. "I have no problem with moderate drinking and people enjoying themselves," he said. "But now there are several places which seem to be open not only into the early hours of the morning but into the late hours of the morning.
"That was never my intention. I am reliably told by young people that there is no difficulty in getting a drink at four or five and six o'clock in the morning. I don't remember passing that Act and I don't think it's a good thing either."
Reports at the weekend suggested new laws were being considered which would put a 1.30am cap on serving time in all pubs and clubs. But in what may come as a relief to young drinkers, Mr Ahern conceded that to have one generic closing time was impractical and would not work.
"There are something like 50,000 people moving out of Temple Bar on a Saturday night and obviously to have that all in one go is a pressure on gardai and on public transport," he said. "But that's not to condone staying open until five or six in the morning."