Ireland: No-deal Brexit could hike up alcohol prices

A no-deal Brexit could hike up Ireland’s booze prices, experts have warned.

The Alcohol Beverage Federation of Ireland said running costs of distilleries would increase which could lead to dearer pints in the pub.

Industry experts say 23,000 trucks in the booze industry cross the border every year – all of which face being hit with massive tariffs if negotiations don’t go well.

The impending levies could be as high as €93 per tonne of barley or €131 per tonne on malt.

Federation chief Patricia Callan said: “Tariffs would add significant costs to Northern Irish whiskey distilleries and breweries buying barley and malt from Ireland, to Irish craft distilleries and breweries buying specialist malts from the UK and to Irish cider producers buying apples from Co Armagh.

“Similarly, tariffs on finished cider products would damage the cost competitiveness of Irish and Northern Irish cider producers, threatening sales and jobs.

“We also need to avoid divergence on VAT. Drinks producers in border counties have, at any one time, up to 40 ‘live’ suppliers on the other side of the border.

“If there was to be no Brexit agreement on VAT, then, for the first time since 1993, an import VAT charge could become payable up-front at the point of importation resulting in significant cash flow disruption and increased administration costs.”

And the group told how job losses may also be on the cards for under-pressure companies. Operators face other threats, including customs checks delays and restrictions on Northern Irish producers for accessing global free trade.

Overall Ireland exported €1.6billion worth of alcohol around the world last year. Its biggest market is the UK which accounted for 71% of its beer exports and 85% of cider exports.

But this could be hugely jeopardised if cross-government talks fail to get a good result.

15 October, 2018