Cuts to excise duty on alcohol detrimental to Ireland’s young people

“Alcohol is not an ordinary commodity and as international research confirms the decision to reduce excise duty will result in an increase in alcohol consumption and alcohol related harm among children and young people under 18. Ireland already has one of the highest levels of alcohol consumption and binge drinking among young people in Europe and this move will only make alcohol more affordable and accessible. Young people are particularly price sensitive and this cut will increase our already high rate of alcohol consumption amongst children and young people. We believe this short term decision will create long term health, social and economic problems for society,” stated Mary Cunningham, Director of NYCI.

The Government is on record as stating that they want to reduce alcohol consumption in general and want to protect children and young people. There is growing international evidence which confirms that frequent and high levels of consumption of alcohol not only cause short term damage to the health and well being of young people, but also damages brain and cognitive development which has long term implications for the health and welfare of young people.

“This move is based on a presumption by Government that a reduction in excise duty on alcoholic products will automatically lead to an increase in tax revenue from alcoholic products in this State. However, there is no guarantee that this will happen. From our analysis we have found that the State would lose approximately €108m or €222 per annum in revenue by reducing the excise by 10% or 20%[1] (we have annualized two month figures provided by the Minister for Nov 15th to Jan 15th). This could mean there is a danger that the taxes from the increased sales will be less than the amount forgone making the reduction pointless,” concluded Ms. Cunningham.

In addition the argument used to lower the duty is that the majority of cross-border shoppers are going to Northern Ireland primarily to purchase alcohol and are purchasing vast quantities. However, the actual evidence does not support this. The most recent study conducted by the CSO* shows that:

• 80% bought groceries on their most recent trip, while only 44% bought alcohol.
• Of the average household spend on cross border shopping of €286, only €32 or 11% was spent on alcohol, not the vast sums we are lead to believe.
• Consumers from the border region are the key group where business is being lost; they are more likely to travel to Northern Ireland to shop and more regularly at 41% of border households compared to national average of 16%.
• Border shoppers are primarily going North to buy groceries, they had the lowest spend on alcohol and the 2nd highest spend on groceries.

ENDS

For further information, please contact Clodagh O’Brien, Communications Officer at NYCI on 087 781 4903 or 01 425 5955 or email communications@nyci.ie

Notes to Editors:

* Quarterly National Household Survey, Cross Border Shopping Module, December 2009.

National Youth Council of Ireland

The National Youth Council of Ireland is a membership-led umbrella organisation that represents and supports the interests of 55 voluntary youth organisations and uses its collective experience to act on issues that impact on young people.