Wine Association calls for 20% cut in excise

The Irish Wine Association has called on the Government to reduce excise by 20% in the upcoming Budget given the impact last year’s 50 cent excise rise on every bottle of wine has had on sales.

The chairperson of the Irish Wine Association, Philip Robinson was speaking as latest Revenue Commissioners figures showed that sales of wine have fallen 10.9% in the year to date.

Mr Robinson said that the wine industry in Ireland had "suffered immensely" over the last 13 months with 25% job losses and falling sales.

He said the excise cut was required not only to save further jobs and revenue but also to restore competitiveness with the North and stem the tide of cross-border wine shopping.

Mr Robinson said: “Irish consumers are subject to the highest excise duties on wine in the European Union, and since the Government decision to impose a further 50 cent on every bottle in the October 2008 Budget, wine sales have declined significantly.

“While the economic downturn is clearly having its own effect on alcohol sales in general, such is the scale of the decline in wine that it is self-evident that the 50 cent increase has been a major contributory factor.

"On top of this, the major increase in cross-border trade that is now seeing 250,000 southern shoppers travel to Northern Ireland, is having a major impact on wine sales in the South.

"It is estimated that up to 6.2% of wine purchases by southern consumers are now being made across the border. As a result, many of the wine distributors that I represent are suffering from low levels of demand, with companies having to reduce staff numbers or, even worse, go into liquidation.

"The Irish Wine Association is calling on Government to reduce excise rates by 20% in the upcoming Budget to help this important industry."