PRESS RELEASE

Appearing before the Joint Oireachtas Committee on Finance, Public Expenditure and Reform today (11 September), the National Off-Licence Association (NOffLA) called on government to refrain from increasing excise duty and to introduce measures to stop the below cost selling of alcohol.

Addressing the Committee, National Spokesperson for NOffLA, Jim McCabe, stated, “Increasing excise duty on alcohol is too often looked on as an easy political move at Budget time. However, such measures are having a devastating effect on employment and small businesses, as well as causing a reduction in taxable consumption and a subsequent rise in the Black Economy.

“Below cost selling also allows large multiple retailers to use alcohol as a loss leader, which costs the State on average €21million each year. Eliminating it would ensure higher standards in alcohol retailing by eliminating the heavily discounted selling of branded alcohol”.

NOffLA, which represents 315 independent specialist off-licences operating under certified responsible retailing standards, has seen over 3000 jobs lost since 2008. In 2012, 21 independent off-licences closed their doors and ceased trading. Ten have closed this year alone.

“NOffLA members are currently facing immense economic pressures and this was amplified by the excise increases introduced in Budget 2013. Further tax increases will result in further job losses and business closures. It will effectively sound the death knell for this indigenous industry”, said McCabe.

Tax on beer is now the fourth highest in the EU, cider the second highest, spirits the third highest and wine the highest in the EU. Addressing this issue with the Committee, McCabe said, “Irish taxes on alcohol are among the highest in Europe which makes it a prime target for counterfeiters in the European market. Figures from the Revenue Commissioners show that the number of seizures of counterfeit and contraband alcohol in Ireland has increased from just above 100 in 2008 to over 350 seizures in 2012.”