Personal Finance: Grocery Price Hikes On The Way

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The Last Word with Matt Cooper 7 min 2 speakers 7 chapters transcribed just now
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What is the new regulation banning loyalty‑card discounts on alcohol?

Matt Cooper 0:00
The last word on today FM. Charlie Weston, you took to the social media today about a story that your colleague John Burns has in the Irish Independent about Jennifer Carol McNeil, the health minister, and you're quite annoyed about it. Tell us about this.
Charlie Weston 0:16
Yeah, um this is the health minister. She's doing her job as a health minister, I suppose, but it's this is going to wind people up. At the moment you can if you're a member of a loyalty scheme, you in a supermarket. In a supermarket, by virtue of being a member of that loyalty scheme, you can buy alcohol at preferential prices. Now you can't use your points to offset against the price. You don't get any points credited to you for buying alcohol, but you can get a preferential price. For example, if you're a Tesco Club card member, you there's a lower price for a bottle of Same part. Like like
Matt Cooper 0:52
a whole range of products in the Tesco is this dual pricing, isn't there? If you sign up and you become a member you can get lower prices.
Charlie Weston 0:58
You get lower prices.

How are supermarkets exploiting a loophole to offer lower alcohol prices without loyalty points?

Charlie Weston 0:59
Now as I say, you just don't get any loyalty points from that purchase and you can't use the loyalty points to offset that price. But you do get it at a lower price. And that's the same with all of them and it works it's the same in off licenses. Now Minister for Health, Jennifer Carl McNeil, is bringing in a regulation. She's it's a statutory instrument under the Public Health Act. uh nineteen uh twenty twenty twenty eighteen and she's gonna ban this practice. Now it's gonna be eighteen months for lead in to give the supermarkets time to get around it. But this is won't to drive people nuts. It seems very paternalistic, seems very nanny state, because you have to consider we have minimum unit alcohol pricing.
Charlie Weston 1:37
We have the the second highest excise duties on alcohol in this country in Europe, only Finland are higher. So uh Well you know, half the price of a typical bottle of wine that you would buy out there in a supermarket or an off licence is VAT on excise duty. Y as we all know from going uh uh uh to on holiday in the continent, we paid through the nose for alcohol. So this is just gonna wine people.

Why does the minister consider the loyalty‑card alcohol discount ban a ‘nanny‑state’ measure?

Matt Cooper 2:00
Okay. I thought like for in in most supermarkets that, you know, if you buy your shopping and you add a bottle of wine or a crate of beer or whatever to it, that that wine or beer does not count in your Uh the points that you get or the discounts that you get. So was this a way around it that some supermarkets and off license found that they actually found a loophole in the law, which is what the minister essentially now is closing off?
Charlie Weston 2:26
She's essentially closing off closing off a loophole. She brought in regular well, no, she wasn't her then, but the the minister at the time in 2020 brought in regulations to stop alcohol price reductions uh campaigns essentially. That's where they were trying to stop. Yeah, and you're absolutely right, Matt. The supermarkets found a way around it by saying, look at if you're a member of our loyalty scheme, you won't get any points for buying this alcohol. You won't use you won't be able to use your points to bring the price down, but plus by virtue of the fact that you're a member of the scheme, you'd get it at a preferential lower price. So this is a way of getting around that. Unspring. I'm surprised the
Matt Cooper 2:59
minister giving an eighteen month lead and I thought she might have just said, No, from n two weeks' time, that's it, done with.

How will rising fuel and wholesale energy costs impact grocery prices in 2024?

Charlie Weston 3:05
Yeah, because she's able to do this through a Saturn instrument and why that's interesting is doesn't need to be voted on in at all. There won't be a round at all about it as such. But Alcohol Action Ireland, for example, that's a campaign group that, you know, is is is is opposed to alcohol being being in any way cheap, which it isn't. But anyway, they're very happy with this. They've been pressing this for a while. They they reckon that the supermarkets in particular are getting around the existing regulation. Yeah. The net effect of this, Matt, is it'll just annoy people. It'll just wind them up unfortunately. In
Matt Cooper 3:36
eighteen months' time they've got to get used to it.

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