Calls for price freeze in Ireland

An Irish politician is calling for a price freeze on drink as the smoking ban continues to damage trade.

Fianna Fáil TD Billy Kelleher has asked licensees for the freeze after the government decided not to increase excise duty on alcohol in the Irish budget last week.

Mr Kelleher also urged customers to take action to halt rising drink prices by being more "discerning" when they choose where to drink.

Prices are thought to have increased by three per cent in the last year, despite a fall in trade, which many have blamed on the smoking ban.

Seamus O'Donoghue, president of the Vintners' Federation of Ireland (VFI), which represents 6,000 pubs outside Dublin, said: "Contrary to popular belief, most price increases are outside the control of a publican. Last June the major breweries increased the price of the pint by just over 6 cent per pint plus VAT. Very few, if any, of the 13,000 licensed premises in Ireland were in a position to absorb that price increase. Costs are increasing all the time and the smoking ban has had a devastating effect on business with losses of on average 20 to 25 per cent.

"Any policy decision that affects the price of alcohol and eases financial hardship is warmly welcomed."

One of the biggest contributing factors to the high pricing of alcohol in Ireland is taxation policy and the VFI urged the government not to increase excise duty and VAT, as well as suppliers not to increase input costs.

Mr O'Donoghue added: "We would welcome a situation where there would be no increase in the price of the pint until 2006."