Liberalisation of pub licensing legislation is expected to come before the end of this month with the Minister for Justice, Mr O'Donohue, intent on passing the Intoxicating Liquor Bill through the Dail before the summer recess.
A Department spokesman said there would be no changes to the Bill before it is voted on as Mr O'Donoghue had consulted widely before its drafting. The Bill will mean that those holding a licence in a rural area can open a pub in an urban one. It also introduces a financial incentive to those in possession of one of the estimated 800 "in pocket" or rarely used liquor licences to sell it on to a person who will use it fully.
The passage of the Bill comes as pressure is increasing on the Government to tackle the rise in inflation to 5.2 per cent. It was estimated that alcohol contributed 1.2 per cent towards this figure.
Responding to newspaper reports yesterday that the Government is also considering the introduction of price controls in bars and the dropping of the Groceries Order, a Government spokesman said no proposals had been brought before Cabinet but "nothing was being ruled out".
The Taoiseach, Mr Ahern, last week spoke of "profiteering" in the licensed trade, and the Bill is seen as the first step in increasing competition.
A repeal of the Groceries Order would end the ban on below-cost selling. It would encounter stiff opposition from RGDATA, the small retailers' association.
The Competition Authority has urged that publicans be allowed to sell alcohol in more than one location. Dr John Fingleton, the chairman of the authority has described the one-mile rule, which prohibits the opening of a new pub within one mile of an existing one, as "anti-consumer".