Reaction as the cost of a pint increases by another five pence.
Drinkers in one Dublin pub were unsurprised by the price increase with one woman joking that it did not bother her and she would still buy ten pints.
The increase in price has mainly been led by the breweries. Last weekend, Guinness added two pence to the price of a pint. In response, most publicans have pushed the price up by five pence. This brings the average price of a pint in Dublin to £2.25 for stout and up to £2.55 for lager. One publican says that when one pub increases prices, all the other pubs follow suit.
Dublin pubs are represented by the Licensed Vintners Association (LVA) who insists that the price hike was not orchestrated and therefore not in breach of competition regulations.
A confrontation is looming between the Competition Authority and publicans over allegations of price fixing and anti-competitive practices.
The Competition Authority has new powers enabling it to get tough on various sectors including the vintners. The authority has initiated legal action against both the LVA and the Vintners Federation as well as ten named publicans. A major report on the drinks industry is in draft stage. The Competition Authority has been examining pricing, opening times and freeing up the market to competition by the issue of more licences.
There is support within government for more licences which could mean lower prices.
Minister of Enterprise, Trade and Employment Tom Kitt TD points out that the pub business is very lucrative and that there is clearly a need for greater competition.
An RTÉ News report broadcast on 2 June 1998. The reporter is Tony Connelly.
