A BAN on below-cost selling of alcohol and a reduction in taxation has been sought by the drinks industry in next month’s budget.
The Drinks Industry Group of Ireland (Digi) yesterday published a report by Dublin City University economist Tony Foley which showed a 25 per cent drop in employment levels in the last two years, falling from more than 100,000 jobs in 2008 to 78,000.
Per capita consumption fell 16.4 per cent below 2007 levels, according to the report. Mr Foley’s paper also claimed that despite recession the industry continued to provide more than €2 billion in VAT and excise revenues and that exports generated €1 billion.
Chairman of Digi Kieran Tobin said yesterday that Mr Foley’s report had demonstrated the very significant contribution the industry had made to the economy through employment and taxation.
“It also emphasises our continuing export success and the profile our major drinks brands give to Ireland and Irish tourism,” he added.
Mr Foley said the industry was a big contributor to the economy through the wide dispersal of 78,000 jobs, €3 billion turnover, €1 billion in exports generated by the drinks manufacturing sector, network of pubs, bars, hotels and tourist centres which were vital parts of the tourism infrastructure, and the €2 billion taxation received by the Government.
Digi has called for a 20 per cent reduction in excise charges, commercial rates and other local authority charges, as well as a new system of determining ratable valuations. It has also sought the abolition of VAT on excise, and the beginning of the reduction of VAT to 13.5 per cent on all on-trade beverages.
According to the group, the measures would help address the serious decline in the sector that had meant pub sales fell by 14 per cent in the current year.
