Wednesday, October 17, 2012

manufacturing industry in ireland


Manufacturing Industry in Ireland

The Irish Government has implemented the toughest budget in its history. Public spending has been slashed and taxes raised, affecting carers, those with disabilities, students and parents. Not drinkers however. Alcohol duty has not been increased. What does this say about Ireland? Is it really a country that takes money from people with a disability and gives it to drinkers?

Manufacturing Industry in Ireland

Ireland's Alcohol Priority
By Damien McGinley

The Irish Government has implemented the toughest budget in its history following the collapse of its economy and banking system. The country needs a mind-boggling rescue package from the IMF and the EU but to get it they have had to slash public spending and raise taxes.
Child benefit and property-related tax reliefs have been cut. The minimum wage has been reduced and public sector salaries have been capped. The disability allowance and the carers allowance have been cut, as have student grants. Duty on petrol is going up.
Drinkers, however, have not been affected.
Households will have to live on hundreds of Euros less per month, but a pint of Guinness will be the same price as before the economic tsunami.
What does this say about Ireland? The country has one of the highest levels of alcohol consumption per capita in Europe. This results in high rates of alcohol-related illnesses like heart disease which burdens the country economically as well as socially. The social impact of alcohol-related crime is also significant.
Alcohol is, however, important to Ireland. The pub trade employs large numbers of people throughout the country, as does the drinks' manufacturing industry. Every town and village, no matter how small, still has a local pub. Pubs are the centre of most communities and are an integral part of Irish life and society.
That has not stopped criticism of the Irish Government for not spreading the pain of the budget to drinkers. The finance minister, Brian Lenihan, defended his decision on RTE radio by saying the retail sector would have been damaged. He said alcohol is traditionally cheaper in Northern Ireland and any increase in duty would mean more Irish people crossing the border to purchase alcohol.
The duty on alcohol in Ireland and the UK is broadly the same however. Some things - like whisky, vodka and other spirits - have lower duty in the UK, while others - like beer and cider - have lower duty in Ireland.
So the difference in price between Ireland and Northern Ireland is not because of any major difference in duty. Rather, it is down to the exchange rate. The difference in price, therefore, applies to most things. For example, a 12-inch pizza in Northern Ireland costs £12. The same pizza in Ireland would cost about 10% more.
The decision not to raise alcohol duty in Ireland's "austerity budget" has as much to do with the Irish culture as economics. Oscar Wilde said: "Work is the curse of the drinking classes." If he lived in Ireland today he might say: "Drink is the distraction of the voting classes".


Damien McGinley is from Bourbon Whisky, the best resource for bourbon prices, reviews, industry information and news.

 

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