The Minister for Finance, Mr McMcCreevy, has warned publicans that if the cost of drink continues to rise, the Government might significantly increase the availability of pub licences or even introduce price controls.
Reacting to last week's call from the Irish Congress of Trade Unions for radical measures to control inflation, he said he could not understand why drink prices continued to rise when the Government had not increased levies on alcohol since 1992.
"The Exchequer take from the price of a pint has gone down as a percentage each year because the Exchequer hasn't been increasing its take, but the publicans have been increasing their margins," he said. "One way of putting manners on everybody there would be to increase the number of licences in the country and that is something the Government will have to face up to in the future."
The situation was getting so out of hand, he said, that a price-fixing order might be considered by the Government. He stressed, however, that he favoured the route of increasing competition, adding that ultimately these matters were the responsibility of the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney.
A European Commission report last month showed the Irish public face the highest drinks bills in Europe relative to purchasing power.
On the issue of reducing VAT or excise duties, Mr McCreevy said they could be dealt with only in the context of the next Budget.
