The Tanaiste has committed the Government to abolishing restrictions on pub and pharmacy numbers within a year.
Her undertaking followed publication of a report from the Organisation for Economic CoOperation and Development recommending the move as part of unprecedented liberalisation of sectors ranging from the legal and accountancy professions to electricity and telecoms.
The OECD concluded that increased competition following the deregulation of the licensed trade would cut alcohol prices by 3 per cent. This is the equivalent of 6p on a pint of stout and 8p on a pint of lager. It would result in annual savings of more than £35 per person aged over 15 in the State, on the basis of Central Statistics Office figures.
Ms Harney said there was no reason why cafes should not sell beer as was common in most other European countries.
The Taoiseach - who also attended the launch yesterday of the 116-page report compiled by the OECD over 12 months - announced the establishment of a group to oversee the implementation of its recommendations.
It is due to report by the end of 2002, but Ms Harney saw no reason why the process should not be complete within months. She added: "It is not realistic to expect full agreement. Both pharmacies and pubs should be fully deregulated within the lifetime of this Government."
The Licenced Vintners Association, which represents publicans in the Dublin area, claimed deregulation would not influence prices but would lead to a fall in standards.
The Irish Pharmaceutical Union welcomed the review but argued that fewer chemists' shops would open and others might close without current restrictions.
Mr Ahern will present an action plan to the Cabinet today including a system of regulatory impact analysis where restrictions on services are being imposed.
Mr Ahern said the Government would engage in the "new process and practice" of direct consultation with vested interests whether they be small businesses or consumers.
According to the Tanaiste, consumers need to be better educated to form a more vocal lobby.
The Competition Authority will also be asked to report on the legal and accountancy professions with a view to opening up these sectors. Such a review, which Mr Ahern said he hoped would be ready by the end of the year, could take some time as Ms Harney has yet to get funding from the Department of Finance for additional staff for the authority.
A review of regulations governing the award of contracts under the General Medical Scheme to pharmacies will be brought forward. And the Commission on Liquor Licensing would also be asked to produce additional interim reports before 2002, Mr Ahern said.
However, the Tanaiste defended the Groceries Order - aimed at preventing below-cost selling - which the OECD said should be repealed. "It is a very fine balance but the outcome is not written in stone and will be constantly reviewed," she said.
Responding to recommendations for further significant reforms of the telecoms and energy sectors, the Minister for Public Enterprise, Ms O'Rourke, said the deregulation called for would be complete by 2005. She rejected suggestions that her Department had come in for the heaviest OECD criticism and said, "You cannot move overnight; it is best to move in a practical fashion."