The price of the pint rose by 5p in thousands of pubs throughout the State yesterday. The move, announced by the Vintners' Federation of Ireland, which represents publicans outside the Dublin area, follows a Government decision earlier this month to lift price controls on alcoholic drinks, and a 2p per pint increase recently announced by suppliers.
Mr Pat Rabbitte TD (DL), who initiated a price freeze while minister of state with responsibility for the sector in the last government, criticised the move.
"Against the background of low inflation, modest wage increases, booming business and pubs changing hands at record prices, a 5p increase is neither necessary nor justifiable," he said. "The fact is that the publican's take has gradually increased over recent years almost in exact proportion to a decrease in the return to the Exchequer."
The 5p rise applies to all alcoholic and soft drinks, with the exception of some domestic brands.
Mr Paul O'Grady, president of the VFI, said there was no profit motive behind the rise. "We've just gone the longest period ever without an increase - the last was in June 1996. With a 2 1/2 per cent rise in wages and recent increases in rates and overheads, it's necessary to maintain our margins."
He said he was confident publicans would not raise prices by any more than the recommended 5p. "They are well aware that with the budget coming up there is an opportunity for the Government to rap them on the knuckles if they go any further."
He added that the VFI is discussing the issue of soft drinks with suppliers to see "whether they can be sold over the counter for a little less".
Ms Caroline Gill, chief executive of the Consumer Association of Ireland, criticised the increase in the price of soft drinks as "way out of line with inflation".
