Independent retailers on both sides of the Irish border have confirmed their support for the introduction of minimum unit pricing (MUP) for alcohol in Northern Ireland.
Respective leaders of the Fed (Federation of Independent Retailers) said the introduction of MUP in Northern Ireland would create a “level playing field” and allay fears of cross-border trading.
Earlier this year Stormont held a consultation on the introduction of MUP in Northern Ireland.
The consultation addressed cross-border trade between Northern Ireland and the Republic of Ireland, stating that the Department of Health has been working closely with colleagues in the Republic of Ireland on this policy with a view to minimising any potential impact on cross-border trade.
It suggested that if Northern Ireland also introduced MUP, the impact on cross-border trade is likely to be minimised but that would be dependent by the minimum prices set in the two administrations and the currency exchange rate.
While it warned that there is also a small potential for criminal gangs to seek to take advantage of any price differential to encourage cross-border smuggling, illicit production and bootlegging of alcohol, it expected that any difference in price is likely to be relatively small and unlikely to make people travel significant distances to achieve a saving.
What is the Minimum Unit Pricing in the Republic of Ireland?
Under minimum unit pricing, the lowest price that can be charged for a gram of alcohol in the Republic of Ireland is 10 cent (Euro). A standard drink has 10g of alcohol in it so the lowest price that could be charged for one standard drink is €1.
A 500ml can with an ABV of 4.2% costs at least €1.66, a 14% bottle of wine cannot be sold for less than €8.28, a bottle of 37.5% sprits cannot be sold for less than €20.71, and a bottle of 43% spirits cannot be sold for less than €23.75.
Source: DrinkAware.ie
The Fed’s Republic of Ireland president Martin Mulligan said: “It’s certainly a good thing and would make things equal for retailers on either side of the border. It would be particularly good for those retailers whose stores are on or close to the border.”
Joe Archibald, the Fed’s president for Northern Ireland, added: “One of the main benefits of MUP for smaller retailers with off-licences is the fact that the big multiples and supermarkets will have to charge the same prices, so they will no longer be able to undercut independents by selling cheaper alcohol as loss leaders. This should level things up and give everyone a fair crack of the whip.”
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