The day of pub owners coming together to agree a uniform rise in the price of the pint has come to an end after the Vintners' Federation of Ireland promised the High Court not to make recommendations on price and profit margins to the 6,000 rural pubs in its membership.
The commitment from the federation came as it settled a civil action taken against it in 1998 by the Competition Authority.
The action followed an extensive investigation by the authority into alleged price-fixing by publicans in the sale of alcoholic drinks.
The authority reached settlement terms in December 2003 in a similar action it took against the Licensed Vintners Association, which represents pubs in Dublin.
As a result of these two settlements, pub customers are no longer faced with the prospect of the price of their favourite drink increasing on the same day by the same rate in all pubs in the same locality.
Such activity amounted to "cartel-type" behaviour, said authority chairman Dr John Fingleton. "The effect of this is that publicans can no longer go around putting up prices with each other."
The authority believes the settlement will set the standard for future conduct in the industry. While Dr Fingleton said the settlement was not going to immediately lead to cheaper drink, he suggested that competitive pressures already at work in the industry were exercising downward pressure on prices.
These included competition from the off-licence sector and pressure on the pub business due to the smoking ban.
The authority's High Court action was against the Vintners' Federation of Ireland and seven men who were or are members of its executive: Paul O'Grady, Patrick O'Brien, William Martin, Edward Carroll, James Tully, David Hickey and John Brennan.
While the federation denied the price-fixing allegations, the action was struck out yesterday with no order as to costs. The terms said the fact that the federation had settled the action against it was not an admission that it had breached the Competition Acts and was not an acknowledgment that the price-fixing allegations were true.
However, the federation made undertakings to the court not to recommend to its members "the prices, margins, increases in prices and increases in margins" earned on the sale of drink in its members' pubs.
It also promised not to breach Section 4 of the 2002 Competition Act which governs anti-competitive agreements.
