Drink trade not bitter at duty increase plans

DRINKERS have for years been enjoying some of the lowest alcohol prices in Europe. Although last week's Budget proposes a 10% duty increase, some spirits will still be cheaper in real terms than a decade ago, according to the drinks trade.

Smokers, who will probably have to pay an extra 15-20p for a packet of 20 cigarettes, have been targeted over the last five years as part of a States strategy to cut the amount of smoking-related illnesses and deaths.

During that time, drinkers have been ignored in the Budget.

Wine & Beer Importers managing director Roy Ferbrache said the first increases in eight years were not unexpected.

'They are justified and 10% is fine,' he said.

'It is really insignificant - 3p on a beer, for instance. Drinkers have been getting away lightly.'

Since 1991, the Guernsey retail price index has increased by around 50%, so in real terms the duty on alcohol has reduced significantly over the last decade. It has also fallen behind our near neighbours - a litre of whisky attracts duty of £4.57 in Guernsey (proposed increase to £5.07); in Jersey it is £7.96 and £10.35 in the UK.

Ten years ago a proprietary brand bottle of scotch would have been on the wholesalers' shelves at £9.99 - this has risen by only 10% to £10.99.

Mr Ferbrache said that not only was the increase justified, but also done for a good reason.

Guernsey Licensed Victuallers' Association president Cindy de Jersey said the proposals 'had been on the cards', but that she had not heard any of her customers comment on them.

'Any increase is a shame, but we have been expecting it,' she said.

Cornerstone co-owner Billy Cann agreed that drinkers had had an easy ride in terms of price increases.

'It won't affect trade,' he said. 'We won't even notice it and I think that you can make alcohol as expensive as you like but, like cigarettes, people will still pay for it.'

Mr Cann said that the pub would expect to put up prices in the new year.