Brewers today called for excise rates to be cut by a fifth in next week’s Budget to help tackle the surge in cross-Border spending.
The Irish Brewers Association (IBA) warned many of the 2,000 jobs in its sector were at risk as people travelled to Northern Ireland to save on their alcohol bill.
With consumers on the average trip buying two-and-a-half times more beer than they would when shopping locally, IBA chairman David Forde said a 20 per cent excise drop was needed to restore competitiveness.
“Cross-border shopping has grown steadily over the last 18 months, but is now reaching a crescendo,” he said.
“The best means of addressing the price difference and to begin to repatriate some of the revenue that we are losing to Northern Ireland is to reduce our high excise rates.
“Ireland has the second-highest beer tax in Europe.”
Mr Forde said the brewing industry was also a crucial supporter of farmers and local authorities, with substantial amounts spent on hops and malt and water usage payments made to councils.
“Over 40 per cent of Irish beer is exported,” he added. “In order to sustain a vibrant export sector it is vital that the domestic market for our products is supported.”
Meanwhile, new figures reveal almost half of shoppers crossing the Border bought alcohol on their most recent trip.
The research, from the Central Statistics Office, shows 44 per cent of shoppers from the Republic purchased beer, wines and spirits when they travelled north, with an average spend of €32.
PA