The Competition Authority has called for reforms of the existing liquor licensing laws to provide consumers with greater choice.
The Authority believes the process is being hindered by the fact that new entrants to the licensing trade need to purchase an existing licence as well as acquire a legal stipulation that a new pub may not locate to an area where there is already an ‘adequate supply’ of pubs already.
Although alcohol consumption per capita has doubled since 1965, the Authority now believes Ireland is now one of the hardest places in Europe to open a new licensed premises.
"The current system of liquor licensing seriously distorts the market, with the Irish consumer losing out through higher prices and reduced choice, said Ms Isolde Goggin, director of regulated markets at the Competition Authority.
"This distortion of the market is seen in Dublin, where approximately 35 per cent of the population are served by just 12 per cent of the pubs".
The Authority has dismissed as ‘scare-mongering’ claims that changes to the licensing laws would lead to a proliferation of pubs. "What is likely to happen is that over time, supply will shift to where the demand is," said Ms Goggin.