Drinks group says alcohol problem 'receding'

The chairman of the Drinks Industry Group of Ireland (DIGI), Mr Richard Dunne, said today the problem of excessive alcohol consumption…

The chairman of the Drinks Industry Group of Ireland (DIGI), Mr Richard Dunne, said today the problem of excessive alcohol consumption in Ireland is "receding" and warned the Government against imposing "draconian measures" such as increased taxes to curb consumption.

Mr Dunne was speaking at the launch of a DIGI-sponsored report which highlights that the industry accounts for 80,000 full time jobs in Ireland and pays over €2 billion in taxes to the exchequer each year.

The report also shows that consumption rates of alcohol in Ireland are falling.

Speaking at the launch of the report, Mr Dunne said: "This report highlights the huge economic significance of the drinks industry in Ireland in terms of jobs, taxes, exports and the balance of payments.  It demonstrates why it is so important to preserve and strengthen the industry into the future."

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Mr Dunne highlighted what he said were "penal levels of taxation" on the drinks industry here. He warned that Ireland had reached "breaking point" in terms of the ability of the industry to continue to bear any further tax increases.

He pointed to falling rates of consumption of alcohol in Ireland, adding: "We are seeing clear evidence that alcohol consumption levels are falling in Ireland and this is significant for the industry and for policymakers.

Today's report follows the second report of the Strategic Task Force on Alcohol, published earlier this month, which pointed out that every adult over the age of 15 spends €1,942 a year on drink. The report also found that personal expenditure on drink has almost doubled from €3.3 billion in 1995 to nearly €6 billion in 2002.

The drop in alcohol consumption last year was attributed in the report mainly due to a large drop in spirit sales after tax on them was increased in the budget.

Éanna Ó Caollaí

Éanna Ó Caollaí

Iriseoir agus Eagarthóir Gaeilge An Irish Times. Éanna Ó Caollaí is The Irish Times' Irish Language Editor, editor of The Irish Times Student Hub, and Education Supplements editor.