The Cider Industry Council's chairman has described today's Budget tax increase as "a devastating blow" to a regional, indigenous industry. Twenty one pence was added to the price of a pint of cider in today's Budget by the Minister for Finance.
Peter McKimm said that the cider industry had spent £40m developing its business in recent years, particularly in the south-east region. Mr McKimm said that over 500 jobs were now at risk.
A spokesperson for Bulmers said the increase in duty on cider will not be passed on to publicans. This move is pending talks with the Government on "the potential devastating impact" of the measure.
The company, which employs 500 people in manufacturing the product in the South East, said the rise was "unexpected and unjustified".
Ruairi Quinn, Labour Party leader, has claimed that the cider tax increase was designed to victimise the people of South Tipperary where Fianna Fáil was defeated in two by-elections. The majority of Ireland's cider output is produced in Clonmel.
Seamus Healy, Independent victor in the South Tipperary by-election, said that the 21 pence increase in the price of a pint of cider will lead to the loss of 500 jobs in Clonmel.
