Proposed Minimum Price for Bottle of Wine €10

oblivious

rubadub wrote: »

But I also would like to see publicans hit. Pubs like diceys and wetherspoons are already selling at or below off licence prices.

They are a very rare bread among the Irish publicans

BoatMad

Deleted User wrote: »

Somebody needs to look at why there is in Ireland a problem with alcohol. At home last week I can buy nice Veneto white for €2.99, and Italy is not all alcoholics.

Government wants to look like is addressing a problems and still can make some money.

Gov makes no money from minimum price orders, the retailers do

BoatMad

BoatMad wrote: »

Gov makes no money from minimum price orders, the retailers do

Is VAT not a percentage?

rubadub

Flex wrote: »

What I mean is, for example, there are two wine products. Product A is €5, product B is €12. The new minimum price for them is €9. Product A adds €4 on, but product B's price remains unchanged. Will the levy only target the new extra €4 that product A is having added to its price, or will it also have an effect on product B's price?

My example might have been confusing, the "levy" does not only target the extra €4, there is no actual levy, just additional income from VAT. I was just showing the extra VAT the government will now get, compared to the day before when the retailer was selling for €5. In addition to that the government will still be getting the same excise & vat as the day before on, which I did not bother calculating.

The government will get no increase from the €12 bottle, if its still sold at €12.

If there is to be an increase from €5 to €9 then I would prefer that the goverment are getting this €4 in full, or at least the bulk of it. This minimum pricing can be seen as a "sin tax" like excise is, but its crazy that the retailer gets the bulk of it. The government only get 19 cent in every euro increase. So from €5 to €9 means the retailer gets €3.24 additional profit, and the governement only gets 76cent in additional revenue.

Flex wrote: »

In my view thats not fair on product B there.

I think its unfair on the producers of cheap alcohol, who are setup and marketing that way. Just like if they had a €100,000 min price on cars it would be unfair on the producers of cheap cars.

Flex wrote: »

Also, its not a given fact the retailer will take the profits, in my experience dealing with retailers

This is why I was being careful in my example and talking of a retailer selling the same product the very next day when the min pricing comes in. To keep it simple and not get into predictions of differences in wholesale prices. I only wanted to illustrate that the government is missing out on revenue, which I think is crazy.

The wholesalers might increase prices, or the breweries, that's a moot point to me, the problem is someone other than the government is laughing all the way to the bank.

odyssey06

rubadub wrote: »

I think its unfair on the producers of cheap alcohol, who are setup and marketing that way. Just like if they had a €100,000 min price on cars it would be unfair on the producers of cheap cars.

There's a likely basis for a legal challenge ... Bavaria to the rescue?

L1011

odyssey06 wrote: »

There's a likely basis for a legal challenge ... Bavaria to the rescue?

It's precisely why the smokes minimum price failed and this one will too.

They could re-ban below cost selling which would hit some offers and maybe own brand spirits but considering we were told that was anticompetitive, itd be politically damaging

rubadub

odyssey06 wrote: »

There's a likely basis for a legal challenge ... Bavaria to the rescue?

and/or the supermarkets.


http://www.scottish.parliament.uk/S4_HealthandSportCommittee/Inquiries/MIN75_Scottish_Retail_Consortium.pdf

Alcohol (Minimum Pricing) (Scotland) Bill
Scottish Retail Consortium

22.Minimum pricing squeezes out budget brands, distorting competition and
the market, and reducing consumer choice. Retailers strongly refute the
equation by some Government representatives of value with poor quality:
the category includes many own-brand products, sought by cost-conscious
shoppers. Own-brand is especially important to grocery retail members of
SRC as most, if not all, have own-brand products.

23.Limiting the market for own-brand products will reduce competition
between brands – competition which drives wider benefits for consumers
including in quality, variety, sustainability and labelling information. It could
also effectively create a barrier to new entrants, in that it will be
significantly more difficult for them to enter a market dominated by
established, entrenched brands if they are unable to compete on price –
again reducing consumer choice.

katydid

howamidifferent wrote: »

As the title says, some group have decided that the minimum price for a bottle of wine should be set at €10 to discourage alcohol abuse. Heard it discussed on the radio earlier. Some doctor was in agreement... Recommendations have been passed to government. More nanny stateism! :mad:

It's punishing the ordinary people who drink moderately - the bottle of wine on a Friday night - in order to get at the kids drinking cheap Lidl vodka before going clubbing.