Watchdog says government must not change policy on minimum prices for alcohol

A watchdog has warned the government not to do a U-turn on strict rules on drink prices in an attempt to tackle the spirally cost of living in September's Budget.

Minimum Unit Pricing (MUP), which was introduced in January, brought in minimum prices for beer, wine and spirits in a bid to reduce binge drinking and alcohol harm.

But Alcohol Action Ireland denied that the increase in alcohol prices in shops and off licences is seriously impacting households struggling with rising inflation.

Minister for Finance Paschal Donohoe is currently under pressure to deliver a package of Budget measures to help address price jumps in fuel, electricity, gas and groceries. 

 Spokesman Eunan McKinney said: "Minimum Unit Pricing is a public health policy initiative designed to support a population reduction of alcohol use."

He added: "Alcohol is a luxury, discretionary product and does not necessarily contribute to a cost-of-living inflationary crisis where every day non-discretionary products such as energy, food, transport and health care costs are significantly increasing, fuelling inflation and adding pressures to household incomes."
The watchdog insisted that alcohol prices are not a significant factor in current inflationary rises as alcohol and tobacco combined made up just 0.44% of the 7.8% rate of inflation in May.
Mr McKinney said: "Minimum unit pricing only ensures that alcohol cannot be sold for less than 0.10c per gram.
"This means that alcohol products which were, prior to its introduction, exceptionally cheap, are no longer quite as affordable. 
"By being less affordable, less strong alcohol is being sold and used, so helping to reduce use and the related harms."

The Department of Finance wouldn't comment on the issue specifically but said all options are being considered in advance of the Budget.
A spokesperson for the Department said: "This is a budgetary matter and as such we can’t comment on the proposal, but all submissions will be considered as part of the pre-Budget process."

The new MUP laws meant that the cheapest can of lager could be sold for no less than €1.70 while a bottle of wine has to retail for €7.40 or higher.  
In the weeks before the policy change, one retailer had a limited promotional offer of a slab of 24 500ml cans of beer for only €15 - or about 63 cent a can.
Currently, a slab of 24 cans of regular strength beer cannot be sold in a supermarket or off licence for less than around €40.