Irish Government seeks cooperation from the Northern Ireland to tackle below-cost selling of alcohol

In the face of the problem of cheap alcohol, the Irish Government has opted for an all-Ireland approach and is seeking a joint North – South initiative to tackle below-cost selling of alcohol in shops and supermarkets.

This follows a decision by Justice Minister Dermot Ahern to clamp down on loss-leading alcohol promotions and cut-price deals, which have been widely blamed for fuelling binge drinking and anti-social behaviour on the streets.

Mr Ahern has opted for an all-Ireland approach to the problem and has made his views known to the authorities in Northern Ireland. He said: "I am conscious that the effectiveness of any actions taken here to curb such promotions could be reduced if similar action is not taken on an island-wide basis. As you know, some of our retailers operate on that basis and it would be desirable to have some common approach to dealing with the problem."

Drafting of regulations is currently being finalised by department officials, after an assurance from the European Commission that the new regulations complied with the EU's internal market rules. The new regulations will come into force in the near future.

The cost of alcohol has fallen significantly in recent years due mainly to the abolition of the Groceries Order and the liberalisation of liquor licensing, which allows retailers to obtain beer and wine licences from the Revenue Commissioners.

Between 2001 and 2007 there has been an increase of almost 70 per cent in the number of off-licences and shops selling alcohol, while the price of alcohol in supermarkets has been falling. A bottle of beer now retails for as little as €0.75 in many outlets, cheaper than some brands of bottled water.

While supermarkets have been using cheap alcohol to attract shoppers, this aggressive marketing has caused controversy. Tesco, for example, was widely criticised for its St Patrick's Day promotion of 48 cans of beer for €24 in recent years. Apart from banning alcohol price promotions, the regulations will also allow the prohibition of events or activities which are “intended or likely to encourage excessive consumption of alcohol”.

Further reforms are planned in the Sale of Alcohol bill, which will repeal existing licensing provisions and replace them with an updated and streamlined statutory code.