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The introduction of minimum unit pricing for alcohol in the Republic of Ireland next year could lead to a rise in illicit alcohol smuggling at the border, a trade group has warned.
MUP for alcohol in Ireland will come into force in January next year
On 5 May, Irish ministers approved the introduction of minimum unit pricing (MUP) for alcohol, which is due to come into force on January 2022.
Minister for health Stephen Donnelly said: “The Public Health (Alcohol) Act 2018 legislates for alcohol from a public health perspective. The act is designed to reduce alcohol consumption, to reduce the harms caused by the misuse of alcohol and to delay the initiation of alcohol consumption by children and young people.
“Ireland had the third-highest level of adolescent binge drinking in the world, according to data from a global study published in The Lancet in March 2019, while 2018 saw an 80% increase in the number of children under 16 admitted to Irish hospitals because of alcohol intoxication.
“Addressing the availability of cheap strong alcohol products will reduce the disease and death caused by the harmful use of alcohol and will ensure that cheap strong alcohol is not available to children and young people at ‘pocket money’ prices.”
‘Massive pressures’
Patricia Callan, director of Drinks Ireland, said the industry was “in favour of tackling the sale of cheap alcohol to reduce alcohol misuse”.
However, she called for the measure to be introduced in Ireland and Northern Ireland at the same time as it could lead to cross-border alcohol shopping.
She said: “While we acknowledge the delays in Northern Ireland in introducing this measure, our position is that MUP should be introduced in conjunction with the north, a position that aligns with the previous Cabinet decision and reconfirmed in the current programme for government.
“Otherwise, it would drive many price-sensitive households, who have already been hard-hit by the pandemic, to shop across the border. It would also place massive pressures on border businesses, and lead to an increase in illicit alcohol smuggling at the border, all at a vulnerable time for our economy.
“An Ibec economic report showed that a unilateral MUP move would increase the existing price differential on alcohol between the Republic of Ireland and Northern Ireland from 27% to 38%. Additionally, it’s estimated that it would result in a €94 million [US$114 billion] loss to the Irish exchequer in increased sales across the border.”
Furthermore, Callan said the introduction of MUP was a logistical challenge for retailers and producers, and stressed the need for a one-year transition period.
She added: “In the context of this debate, it’s also important to highlight that alcohol consumption in Ireland declined last year by 6.6% to its lowest level in 30 years.
“This fall, while accelerated by Covid-19 and the closure of the hospitality sector, is also in line with the fact that alcohol consumption generally is declining in Ireland. The average consumption in 2020 was 29.8% lower than the peak of 2001.”