Lodge a complaint to Brussels re Guinness price hike

slack

I today lodged a formal complaint with the Irish Competition Authority and the EU Directorate General for Competition regarding excessive pricing, following Diageo's announcement to increase the price of Guinness. The multinational drinks company announced yesterday that they would increase the wholesale price of Guinness in Ireland by 6c as of next Tuesday, 1 June 2004. I would encourage people to write, email and phone the authorities, who are supposed to protect consumers from such behaviour by large corporations.

On 1 April Diageo dropped the wholesale price of Guinness for the Czech Republic, where they face stiff competition from local brands, and imports Heineken and Murphy's Irish Stout. They also announced in April that they will close the Park Royal Brewery in London, laying off 200 workers. You would expect that this would result in cost savings, which could be passed on to the consumer. There is no excuse for this price hike.

The EU has passed sound consumer protection and competition law, which should benefit everyone in the EU. Irish competition legislation obviously isn't working though, if large corporations can abuse their market position like this. Diageo were fined $2m for breaking competition laws in Venezuela recently. They shouldn't be allowed run roughshod over consumer rights here.

For all the talk about 'rip-off Ireland' from the big political parties and other Euro candidates, there has been precious little done to tackle multinational corporations like Diageo and Microsoft, who have been found in breach of competition laws all over the world. The corporate media have been covering the Guinness price hike story as if it were something uncontrollable or inevitable. In a way it is inevitable, I'd agree, because anyone with the sort of market dominance which Diageo enjoys, and the access to political power which they exercise, is going to rip off consumers. If you visit my website (votedubsky.com ) you can see the complaint which I sent, and contact details for you to make your own complaint if you like.

The other day I was at a talk by Richard Stallman in Trinity College about software patents. It's the same thing over and over: the government just parrot whatever they're told by this multinational corporation or the other. They in turn control markets and tax citizens, just as Mussolini had envisioned it: "Fascism should more properly be called corporatism, since it is the merger of state and corporate power." – Benito Mussolini (cited by Lewis Lapham in Harper's, January 2002).

Mighty_Mouse

I dunno. Its been years since Guinness increased the price of a pint. My problem lies primarily with the publicans on this issue. Vitners association/cartel is where the anti-competitive practices lie in the main. A cartel which point blank refuses to absorp any increases in the cost of their supply. A cartel who insists on never having a bad year by maintaining huge profits year on year.

I really hope that the smoking ban plus this next increase by the vitners results in a collapse in the number of people going to the pub. Only then might we see a return to sane prices and maybe even a little competition

AngelofFire

I agree the price of a pint in this country is a disgrace. I got a pint of guinness up in NI for stg£1.70 in a fairly classy bar.Why must we be ripped off here. come to think of it i think would be best if this thread was moved to rip off ireland. it would get much more support.

halkar

Why complain about the company where as it is the government that takes most of your beer money. Diageo's 6c becomes 15c by the time it gets into your glass somehow. Companies have no control over how governments taxes your drinks and most countries pay the same wholesale price, if you are paying too much here than in other places in Europe than it is not Diageo but your government's and publicans. I think you should change your letter and send another one changing Diageo to Irish Government.
It is a bit like smokes, you pay over 6 yoyos here where as you buy the same smokes 1/3 of the price of here some countries :rolleyes:

PaulHughesWH

Slack? So this is the famous Mr. Dubsky!

slack

Yep, I'm Eoin Dubsky, or "slack " as I'm known on Redbrick (DCU Computer Networking Society).


My point here isn't just about the price of a pint. If that were the problem, then of course the government's wopping taxes on drink would be the main issue. My complaint to the Competition authorities was about the abuse of power which Diageo, a multinational corporation, are trying to get away with in a country where they hold a dominant position in the booze market. When the government levy taxes on stuff, there is some hope at least that the money will be used for the public good.

halkar

Originally posted by slack
.. When the government levy taxes on stuff, there is some hope at least that the money will be used for the public good.

Yes sure it will be. From the recent headlines:
Health Minister forgets his passport and misses the plane. No problemo, we sent the government jet and pick him up at the cost of 10000 yoyos. I'd say let him walk home We don't pay taxes to pay his stupidity or to send our council members to St. Patrick parades in US.! If you want to boycot, don't drink and campaign for that and see if anyone cares

AngelofFire

Originally posted by halkar
If you want to boycot, don't drink and campaign for that and see if anyone cares

it`ll never work the day the irish boycott alcohol is the day hell freezes over.

alleepally

Originally posted by AngelofFire
it`ll never work the day the irish boycott alcohol is the day hell freezes over.

When WAS the last widely supported boycott of anything in this country?

I can't remember anything other than the Dunnes Stores workers refusal to handle SA product but don't know if that had public support.

Tbh, there's more important things to think about than the price of drink right now. We've got the possibility of $50+ a barrel of oil... That's economy busting right there. We can all do without drink. Oil price affects everyone.

DublinWriter

I've got one word to say about all this...Beamish.

If Irish people were actually capable of outrage, then all Guinness drinkers would switch to a genuine Irish porter.

Go on....be a bore. Badger Guiness drinkers to switch at your local pub today.

Let's see ol' Carmel Foley get a bit of value on her €6m 'Shop Around' campaign.