Press release: Government must consider increase in alcohol excise duty to reduce road fatalities 

Alcohol Action Ireland Press Release, 6 August, 2024 

Government must consider increase in alcohol excise duty to reduce road fatalities 

Alcohol Action Ireland (AAI) notes with concern the continuing tragic rise in road fatalities this year. 

 AAI agrees with Taoiseach Simon Harris’ recent statement that Ireland is at a ‘critical juncture’ in the fight to save lives on our roads, and that ‘we must take steps to reverse the trend and prevent more lives being lost.’ As such, AAI believes that all measures proven to reduce road deaths must be considered, one of which is to reduce drink driving by increasing alcohol pricing. 

 In its pre-Budget 2025 submission, AAI is calling for a 15% increase in excise duty on alcohol and that going forward it should be automatically linked to inflation. One likely outcome of an increase in alcohol prices is a reduction in road deaths. Across the EU, it has been shown that a 10% increase in the price of alcohol leads to a 7% reduction in road deaths – for 2023 that’s 13 people who might still be alive today.  

AAI CEO Dr Sheila Gilheany said: “Government needs to adopt a strategy that considers every aspect of how traffic crashes occur and this obviously includes tackling the scourge of drink driving.  Over the Bank Holiday weekend 127 people were arrested for this offence while according to RSA research, one in ten drivers in Ireland have admitted to drink driving in the past year.  37% of road fatalities show a positive toxicology for alcohol and a study in France found that drivers under the influence of alcohol are almost 18 times more likely to be responsible for a fatal accident.  

A well-evidenced approach to reducing this carnage is to increase excise duty on alcohol, which in Ireland has not been touched for a decade. A 10% increase in alcohol pricing across the EU has been shown to lead to a 7% drop in road deaths. For last year in Ireland, that equates to 13 people and unfortunately this year the statistics make for even bleaker reading.” 

 A key driver of alcohol consumption is its affordability. Reports of Ireland having high alcohol prices don’t take into account the relative price of alcohol compared to other good and disposable household income. When considering these factors, the OECD has found that Ireland’s alcohol is the second most affordable within OECD members and has the highest level of affordability for young people aged 16-24 years. Shop-bought alcohol is around the same price today as it was 20 years ago, meaning that it is now 70% more affordable than in 2003. Even alcohol bought in pubs is 14% more affordable than it was two decades ago. Alcohol excise duty has not changed in a decade, meaning its public health benefit has been significantly eroded by inflation.  

Dr Gilheany continued: “A 15% rise in excise duty would go some way to simply bringing back its value to where it was 10 years ago and could have a significant impact on multiple alcohol harms including drink driving. In addition there must be comprehensive enforcement of current drink driving laws, the introduction of the ‘alcolock’ system and alcohol treatment made available to offenders. 

“Alcohol is Ireland’s cheapest and most widely available drug. The harm from alcohol permeates all areas of society and places a huge burden on government finances – from the justice system through health, workplace productivity and children and family impacts. It’s high time the government put the health not just of road users but of everybody before the private wealth of the alcohol industry and increase excise duty on alcohol. It would be a lifesaver.” 

ENDS 

Notes:  

1. AAI pre-Budget submission can be accessed at:   
https://alcoholireland.ie/wp-content/uploads/2024/05/Pre-Budget-2025-Submission.pdf 

2. An assessment of the effects of alcohol consumption and prevention policies on traffic fatality rates in the enlarged EU. Time for zero alcohol tolerance? José I. Castillo-Manzano, Mercedes Castro-Nuño, Xavier Fageda, Lourdes López-Valpuesta, 

Transportation Research Part F: Traffic Psychology and Behaviour, Volume 50,2017, 

3. Analysis of changes in alcohol prices, taxation and affordability in the Republic of Ireland. Sheffield University Report. 

4. Alcohol excise duties in 2023 raised €1.2 billion. General Excise Tax Strategy Group, July 2024.  15% rise across all alcohol excise duties equates to €189 million.  

5.Data re comparison of alcohol affordability levels across OECD countries available at: Preventing Harmful Alcohol Use. OECD 2021   

6. AAI’s media language guide can be accessed here