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Joint Oireachtas Committee Hearings on the
Public Health (Alcohol) Bill 2015
23rd April 2015
Speech by
Minister for Health – Leo Varadkar, T.D.
Introduction
Good morning Chairman and members of the Committee,
I am pleased to be here today to bring these public hearings on the
General Scheme of a new Public Health (Alcohol) Bill 2015 to a
close.
First of all, I want to commend the Chairman, Deputy Jerry Buttimer,
the members of the Committee, other members of the Oireachtas who
participated in these hearings, and all the invited guests for the
sensible and constructive approach that we have witnessed over the
past few weeks.
My officials and I have found the presentations and insights presented
by your guests very useful. I am confident that these submissions and
the report that this Committee will produce will greatly assist me and
my officials in the drafting of the final legislation.
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Alcohol Misuse
I am sure you all agree that Ireland has a serious problem – we drink
too much alcohol. The consumption of alcohol in Ireland increased
by 192% between 1960 and 2001, from an average of 4.9 litres pure
alcohol per adult to 14.3 litres. Since this peak, alcohol consumption
has reduced and in 2013 alcohol consumption per adult was 10.64
litres in 2013. Ireland’s alcohol consumption remains in the top 5
among EU28 Member States. And this Region has the highest
consumption in the world. Early statistics indicate that alcohol
consumption increased in 2014 from 10.6 litres to 11 litres per person,
which is worrying and it suggests that consumption may continue to
rise as the economy grows in the absence of any policy change.
Furthermore, when we drink, we tend to binge drink. Patterns of
drinking, especially drinking to intoxication, play an important role in
causing alcohol-related harm. The evidence suggests that the majority
of Irish drinkers engage in excessive or problematic drinking
behaviours and that Irish drinkers underestimate their alcohol intake.
Ireland was second in the WHO European Region in binge drinking
with 39% of the population misusing alcohol in this manner at least
monthly.
Our most recent national alcohol consumption survey was published
by the Health Research Board last year.
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This report found that:
 54% of drinkers were classified as harmful drinkers.
 75% of all alcohol consumed was done so as part of a binge
drinking session
 Irish drinkers underestimate their alcohol intake by 61%.
The study shows that more than half of adult drinkers in the
population are classified as harmful drinkers. And this figure does
not include 20.6% of the population who are abstainers. When the
proportion of survey respondents who are classified as harmful
drinkers is applied to the population, this equates with between 1.3
and 1.4 million harmful drinkers in Ireland.
Harmful drinking is more common among men than women, and
most common among 18-24 year olds. In this category a staggering
75% of them drink in a harmful way. In addition, a considerable
proportion of ‘self-defined light or moderate drinkers’ drink 6 or more
standard drinks on a typical drinking occasion. This is equivalent to
binge drinking. So even these ‘light drinkers’ do not realise that they
consume alcohol in an unhealthy manner.
The findings of this study lead to the conclusion that, amongst the
drinking population, harmful drinking is the norm in Ireland, in
particular for men and women under 35 years.
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I am aware that over the last number of weeks you have listened to
numerous speakers who have presented the kinds of damage that
alcohol misuse of this magnitude does to the drinker, families,
communities and society as a whole
Public Health (Alcohol) Bill
As you know, the General Scheme for the Public Health (Alcohol)
Bill was published last February and my Department is now drafting
the Bill. It is my intention to have the Bill ready before the summer
recess and introduced in the Houses of the Oireachtas in autumn.
This legislation is the most far-reaching proposed by any Irish
Government, with alcohol being addressed for the first time as a
public health measure.
The bill is part of a comprehensive package of measures to reduce
excessive patterns of alcohol consumption as set out in the Steering
Group Report on a National Substance Misuse Strategy. It is also one
of the measures being taken under the Healthy Ireland framework.
The aim is to reduce alcohol consumption in Ireland to 9.1 litres per
person per annum (the OECD average) by 2020, reduce binge
drinking in particular, and to reduce the harms associated with
alcohol.
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I believe that legislative measures contained in the bill are necessary
if we are to achieve this aim and change our relationship with alcohol.
The Bill includes provisions for:
 minimum unit pricing to eliminate cheap alcohol from
supermarkets
 Structural separation in shops to reduce availability and
visibility
 health labelling on alcohol products
 restrictions on the advertising and marketing of alcohol
 regulation of sports sponsorship
 enforcement powers for Environmental Health Officers
Minimum Unit Pricing
Addressing the price of alcohol is an important component of any
long-term approach to tackling alcohol misuse. The price of alcohol
is linked to consumption levels and levels of alcohol related harms.
The World Health Organisation saysthat there is “indisputable
evidence that the price of alcohol matters. If the price of alcohol goes
up, alcohol-related harm goes down”. Despite Ireland having
relatively high excise duty rates, the price of alcohol remains very
affordable, particularly in supermarkets. A woman can reach her low
risk weekly drinking limit for just €6.30, while a man can reach this
weekly limit for less than €10.
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The Public Health (Alcohol) Bill will make it illegal to sell or
advertise for sale alcohol at a price below a set minimum price.
Minimum Unit Pricing sets a minimum price per gram of alcohol.
The minimum price of an alcohol product shall be based on the
number of grams of alcohol in the product.
I know that Dr John Holmes and Dr Colin Angus from the University
of Sheffield delivered an excellent presentation on MUP and the study
they carried out in Ireland. Suffice to say that the study provided
robust evidence that:
• Minimum Unit Pricing policies would be effective in reducing
alcohol consumption, alcohol harms (including alcohol-related
deaths, hospitalisations, crimes and workplace absences) and the costs
associated with those harms; and
• MUP would only have a small impact on alcohol consumption for
low risk drinkers. Somewhat larger impacts would be experienced by
increasing risk drinkers, with the most substantial effects being
experienced by high risk drinkers.
This is because MUP is aimed at those who drink in a harmful and
hazardous manner. Alcohol products which are strong and cheap are
those favoured by the heaviest drinkers, who are most at risk of
alcohol-related illness and death and young people who have the least
disposable income.
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MUP is not expected to affect the price of alcohol in the on-trade in
the main. But it will prevent large multiple retailers from absorbing
increases in excise rates and from using alcohol as a loss leader.
Officials in my Department are also looking at possible mechanisms
to ensure that some of the financial benefits of MUP may flow back to
the Exchequer.
Some of you have been calling for a ban on below-cost selling instead
of MUP. I would like to take the opportunity to clarify why MUP is
more effective than a ban on below cost selling. First of all, there is
no agreed definition of below cost selling in Ireland or how it could
be calculated. If it is interpreted as alcohol being sold below VAT
and excise duty then very little alcohol is sold at this price in Ireland.
The University of Sheffield study found that a ban on below-cost
selling would have a negligible impact on alcohol consumption or
related harms.
Working out a cost price that incorporates other costs such as
manufacturing, transportation and retailing is a complex and
expensive exercise. Banning below cost would be difficult to
implement, monitor and enforce. MUP is easier to understand
measure and enforce than a ban on below cost selling.
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Others have been calling for a general increase in excise rates. But
further increases in excise rates would render premium and higherpriced alcohol more expensive, which is unnecessary for the purpose
of targeting hazardous and harmful drinkers – who purchase larger
quantities of cheap alcohol. It would be just another tax.
A tax increase would not necessarily have the same effect as a
compulsory minimum price, because of the risk that taxes would not
be passed on in full. However, MUP prevents large multiple retailers
from absorbing increases in excise rates and from using alcohol as a
loss leader.
The appropriate MUP will be chosen taking into account estimates
from the report of the University of Sheffield and in consultation with
the relevant Departments. The price needs to be set at a level the
evidence indicates will reduce the burden of harm from alcohol use.
I know that many of you are concerned about the impact that MUP
might have on cross-border trade. The Minister for Health in
Northern Ireland has also announced plans to introduce Minimum
Unit Pricing for alcohol. My officials are in contact with their
counterparts in the Department of Health, Social Services and Public
Safety on the matter and we are cognisant of the requirement to work
together with the North on the implementation of MUP.
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Finally, on MUP, I want to give you an update on the current
European court case. Last February, the Scottish Inner Court of
Sessions, Scotland’s highest court, referred a number of questions on
MUP to the European Court of Justice. The Court is due to hold a
hearing on this case on 6th May and we expect a judgment by the end
of the year. We intervened in this case and the relevant officials will
be attending the hearing in Luxembourg. We are hopeful that MUP
will be found to be compatible with EU treaties and rules and it is
therefore important that all the necessary steps have been put in place
to commence the legislation, if enacted. But it is a risk.
Regulation of Advertising and Marketing of Alcohol
Moving on now to the regulation of marketing and advertising;
protecting children from exposure to alcohol marketing is an
important public health goal. There is a compelling body of research
which shows that exposure to alcohol marketing, whether it is on TV,
in movies, in public places or alcohol branded sponsorship, predicts
future youth drinking.
Numerous longitudinal studies have found that young people who are
exposed to alcohol marketing are more likely to start drinking, or if
already drinking, to drink more. Research also shows that selfregulation is not able to protect young people from exposure to large
volumes of alcohol marketing and appealing alcohol advertising.
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The Public (Health) Alcohol Bill will make it illegal to market or
advertise alcohol in a manner that is appealing to children.
It provides for the making of regulations on the marketing and
advertising of alcohol and includes provisions for restrictions on
broadcast marketing and advertising, cinema advertising, outdoor
advertising, print media and the regulation of sponsorship by alcohol
companies.
This will encompass major sporting events for the first time by
putting the existing Code of Practice for Sponsorships by Drinks
Companies on a legal footing with enforcement powers and penalties.
The legislation will contain a commitment that the provisions on
marketing and advertising will be reviewed after 3 years.
Labelling
On labelling, research shows that accurate information on the alcohol
content of specific beverages is essential to promote awareness of
alcohol intake. However, ‘standard drink’ or units are widely
misunderstood by the general public.
In order to address this, the Public Health (Alcohol) Bill will provide
that labels on alcohol products will contain the following:
 Health warnings including for pregnancy;
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 The amount of pure alcohol as measured in grams; and
 The calorie count
Under the Bill, pubs and restaurants will also be obliged to provide
this information to customers for alcohol products sold on draught or
in measures e.g. pints, glasses of wine and measures of spirits.
Finally, health warnings will also be included on all promotional
material.
Structural Separation of Alcohol Products
From a merchandising perspective, at the moment, the Minister for
Justice and Equality, and I, are examining the best way to implement
the separation of alcohol products from other products in mixed
trading premises. Our aim is to ensure that alcohol products cannot
be displayed like ordinary grocery products, but will be subject to
strict merchandising requirements.
Enforcement Measures
The Public Health (Alcohol) Bill will be enforced by Environmental
Health Officers.
Provisions to be enforced include:
 minimum unit pricing
 health labelling
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 the control of marketing and advertising
 structural separation of alcohol from other products; and
 regulations relating to the sale, supply and consumption of alcohol
products under section 16 of the Intoxicating Liquor Act 2008.
These pertain to restrictions on advertising, promoting, selling or
supplying alcohol at reduced prices or free of charge.
Conclusion
To conclude, I believe that the Public Health (Alcohol) bill will act as
a powerful enabler towards a healthier relationship with alcohol in
Ireland. I know some people believe the measures don’t go far
enough, but I am confident that it is a bold and major step in the right
direction. As I said earlier, I will seek Government approval to
publish the Bill before the summer recess and plan to initiate it in the
Houses of the Oireachtas in the autumn.
Finally, Mr. Chairman, I want to thank you and all of those who have
participated in these public hearings for the valuable contribution you
have made to this issue and for the assistance you have provided to
me and my officials in the work that lies ahead of us. I look forward
to receiving your report and reflecting it in the legislation as
published.