Labour calls for price controls on drink

The Labour Party wants price controls applied to drink after news that the price of a pint could go up by as much a 10 cents …

The Labour Party wants price controls applied to drink after news that the price of a pint could go up by as much a 10 cents next month.

Guinness announced on Monday they were putting 4 cents on the price of beer and 5 cents on spirits, but there are fears publicans will apply a further increase, leading to the over-the-counter price increasing by as much as 10 cents after VAT and duties are added.

The Labour Party spokesperson on consumer affairs, Ms Kathleen Lynch, today said the latest increase is the third in little over a year and should be met with the re-introduction of price controls.

"We had the undoubted profiteering of many retailers, restaurant, and pub owners who took advantage of the euro-changeover to slap a few more cent onto their drinks last January. This was followed by a 10 cent rise last March, and now the price of a pint seems set to go up again. This is becoming a thrice-yearly event," she said.

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She said the Taoiseach and Tánaiste - "whose fondness either for a pint or for opening off-licences is well-known" - are not taking responsibility for the inflationary effect of drink prices.

"In effect, they have left controlling inflation to IBEC and ICTU. They are betraying Irish consumers by not taking responsibility for controlling prices in industries that make such immense profits."

But the Government has committed to a programme, as part of the proposed Sustaining Progresspay agreement, to take anti-inflationary measures which could include temporary price controls.

The news comes as drink companies were last night warned they could find it more difficult to promote their brands in the future.

The Minister for Health Mr Micheal Martin last night confirmed his intention to introduce legislation clamping down on promotional activities such as happy hours, sponsorship and advertising.