Mayo economy 'faces double blow from Brexit and alcohol bill'

AN economic report has shown that the combination of a hard Brexit and the Public Health Alcohol Bill pose a major threat to Mayo’s economy.

The study by agri-economist Ciaran Fitzgerald, on behalf of the Alcohol Beverage Federation of Ireland (ABFI), cites a number of factors that will have an impact on the cost base of the hospitality sector that employs over 3,600 people in Mayo alone.

The devaluation of sterling following the Brexit vote last June has led to a rise in cross border shopping and increased the cost of Ireland as a tourist destination.

Combined with the new regulations proposed in the Alcohol Bill which will increase costs on brewers and distillers, a real concern exists for growth in the sector.

ABFI is calling on the government to cut excise duty, reintroduce the ban on below cost selling to disincentives cross-border shopping and tackle alcohol misuse, introduce tax and regulatory measures to incentivise companies in the food and drink sector and not impose any additional costs on business, such as structural separation, additional advertising restrictions and health labels which will increase the cost of doing business in Ireland and effectively act as major barriers to emerging craft brewers and distillers.

Ciaran Fitzgerald said; “The Brexit vote last June and the subsequent drop-in sterling has presented a huge challenge for counties like Mayo. Irish alcohol prices are already the most expensive in the EU at 175% the average and this combined with sterling's devaluation means the price of alcohol can be up to 40% cheaper across the border.

“The UK is Ireland’s biggest export market for food and drink with exports of €4.5bn in 2015. The outcome of Brexit negotiations remains unclear however, it's vital that the government puts in place a series of policy measures which will support the sector, ensure it gains access to new markets, supports new entrants and protects the unique geographic indicators for Irish Whiskey, Irish Poitin and Irish cream that we share with the north.'