Publicans predict success in price freeze challenge

PUBLICANS from outside Dublin predicted yesterday they would break the price freeze on alcoholic drinks imposed on them by the…

PUBLICANS from outside Dublin predicted yesterday they would break the price freeze on alcoholic drinks imposed on them by the Minister of State for Enterprise and Employment, Mr Pat Rabbitte.

Following their success in being allowed to challenge a ministerial order preventing them from increasing drink prices, the president of the Vintners' Federation of Ireland, Mr Paul O'Grady, said they would win the action because the restriction was not sustainable.

In addition, there was a case for allowing publicans "a 10 per cent increase in gross profits to come into line with normal pay rates in this country".

Speaking to delegates representing 6,000 provincial publicans at the VFI's annual conference Mr O'Grady said price control could only be sustainable if those supplying goods and services to publicans were similarly restricted.

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The VFI had been advised by its legal representatives that they would win the High Court case.

"Mr Rabbitte certainly made a name for himself as `the Minister for the Pint', the consumer's champion. He may have won that battle but this federation will win the war." The Government, Mr O'Grady added, would best serve consumers by protecting 76,000 jobs in the licensed trade and looking at the stupidity of pub trading hours in comparison to other outlets.

Ultimately, consumer choice was the key factor. Consumers would decide on the basis of size and style of pub, its music, prices, product range, staff and food.

The VFI would resist any move to extend the sale of alcohol to garages, corner stores or fast food outlets, especially in the context of 3,000 licences too many in existence".

It feared the Competition Authority's report on the sector would advocate "allowing anyone and everyone to offer alcohol as part of their trade".

Equally, the VFI was concerned its stance on pricing might be predetermined before proper evaluation.

Publicans, he said, had learned to live with new alcohol limits on motorists but would take to the streets if there was going to be a new 50 mg limit.

They had successfully defended publicans' right of refusal which was under threat from proposed equal status legislation, Mr O'Grady said. "The right to refuse will not be tampered with again."

The VFI had shown a willingness to help prevent alcohol abuse among young people by introducing identity card schemes, but it was time the Minister for Justice introduced a mandatory ID scheme.

Kevin O'Sullivan

Kevin O'Sullivan

Kevin O'Sullivan is Environment and Science Editor and former editor of The Irish Times