Press Release - Government Inaction Facilitates Binge Drinking

(22 Apr 2009)

“ Key elements of legislation introduced in July 2008, aimed at curbing alcohol abuse and underage drinking have not yet been brought into effect because the Government has buckled under pressure from the international retail giants operating in this market and the consequence is a complete failure to tackle the ongoing national problem of binge drinking”, stated Jim McCabe, Chairman of the National Off-Licence Association. Mr McCabe was speaking at the annual general meeting of the Association ( today, 22 April), which represents 350 independent off-licences nationwide.

“ As far as alcohol is concerned there are two major influences currently impacting on consumer behaviour, both of which are within the capacity of our legislators to deal with. The first factor is the irresponsible promotion of bulk purchasing of cheap alcohol, which is the favourite 'below cost' marketing tool that retail giants such as Tesco, Aldi and Lidl resort to in their efforts to grow market share. This is despite the universal expert view that cheap alcohol purchased in large quantities is central to the alcohol abuse problem.

“The other major influence is the escalating level of cross border trade, with huge volumes of alcohol being high on the Southern visitors' shopping lists when they travel to the lower taxation environment in Northern Ireland. Whereas in the past our typical off-licence customer would routinely have made occasional purchases of a bottle of wine or a small number of beers, they now buy alcohol by the 'boot load' from the retail giants in the South and on their shopping expeditions to the North. This inevitably leads to excessive consumption.

“In July of last year legislation aimed at curbing irresponsible trading, including confining alcohol displays to specific areas within supermarkets separated from food, restricting bulk purchase incentives and ensuring proper training of alcohol sales staff, was to be introduced by the Minister for Justice. The legislation was subsequently put on hold pending the introduction of a voluntary Code of Practice to be adopted by the major multiples and mixed trade sectors. Nine months later the Code still awaits implementation, due to intensive lobbying by the major multiples and meanwhile these same retailers continue to blatantly defy the principles on which the Code was supposedly based, by incentivising customers to purchase in high volumes.

“No explanation has been forthcoming for the delay in implementing the proposed Code of Practice, so the conclusion may be drawn that the Government is being unduly influenced by the major multiples, a position that is intolerable.

“At the same time the mass exodus of customers to Northern Ireland continues unabated due to the failure of Government to address the imbalance in taxes, especially VAT between the jurisdictions (21.5% versus 15% in the North), which is a major influence on comparable prices north and south”, stated Mr McCabe.



Mr McCabe also referred to the announcement exactly one year ago, by the then Minister for Justice, Brian Lenihan, of the setting up of the Government Alcohol Advisory Group, which subsequently put forward a series of recommendations that were largely welcomed by the National Off-Licence Association. “It is more than ironic that one of the few changes to liquor licensing that were in fact subsequently enforced in the new licensing legislation was in relation to the trading hours for off-licences. The nett result was that the sector that has demonstrated the highest level of standards in responsible trading suffered the greatest level of curtailment in trading hours. Owners, managers and staff in independent off-licences have demonstrated their commitment to specialised training in relation to tackling alcohol abuse and underage drinking, through responsible trading yet this is the sector that is most adversely affected by the new licensing hours. The reduction in trading hours only adds to more bulk purchasing by consumers, disbelief amongst visiting tourists and the likelihood of illegal selling of alcohol outside licensing hours by irresponsible traders”, said Mr McCabe.

The National Off-Licence Association has for many years conducted specific staff training courses as part of its Responsible Trading in the Community (RTC) programme amongst its own members. These courses have been mandatory as part of the qualification criteria for membership of the Association.

The Association has offered to extend the facility to participate in their courses to all sectors of the off-licensed trade, while calling on Government to enforce its stated commitment to making it mandatory for all retail staff members with responsibility for alcohol sales to undergo specific training and to have a clear understanding of the licensing laws and the consequences of failure to observe those laws. “Staff also need training to understand the health and psychological effects of alcohol consumption and to empower them to deal with issues such as drunkenness and secondary purchasing”, said Mr McCabe.


ENDS


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