SHOPPERS FROM the Republic bought 10 million litres of beer and 800,000 litres of spirits in the North last year, according to new figures.
Some 6 per cent of the off-licence trade in the Republic has migrated to the North as shoppers cross the Border in search of cheaper drink prices, according to the Alcohol Beverage Federation of Ireland.
The federation, which represents drinks manufacturers and suppliers, says last Christmas was disastrous for the industry, with alcohol sales in the Republic down over one-third in December. Sales of spirits dropped by 61 per cent.
Although alcohol consumption fell by 6 per cent last year, the federation says most of this fall is due to increased cross-Border sales. “This means no extra public health benefit, but a very negative economic impact,” said the federation’s director Rosemary Garth.
Per capita consumption of alcohol is now at 1997 levels, the industry claims.
The industry has appealed to the Government not to increase excise or other taxes on its output in the forthcoming budget.
“We’re asking the Government not to impose any job-reducing taxes. If it does, there is no doubt that jobs will be lost because the industry cannot continue with the decline currently under way,” Ms Garth said.
Sales of alcohol in the Republic have fallen as much in the last six months as in the previous six years, she pointed out, mostly thanks to a leakage of sales across the Border.
This was undermining an industry which employed 100,000 people and paid over €2 billion in taxes to the exchequer.
While the pubs and off licences in the Republic suffer, their counterparts in the North are flourishing. Alcohol sales in the North grew by 45 per cent in December, while in Border areas the increase was 88 per cent.
Sales of alcohol in the North are now almost as great as in the Republic, despite the fact that it has a far smaller population.
Ms Garth said falling drink consumption would not yield extra health benefits because people were buying more alcohol outside the jurisdiction. The industry was still committed to the promotion of responsible drinking but this did not preclude measures to sustain the sector economically.