Distillers and small brewers toast the minister

BREWERS and distillers have welcomed budget plans aimed at helping them to get production and profits flowing.

Budget 2020 raises excise relief for microbrewers, so that the first 50,000 hectolitres of production – that’s nearly 8.8 million pints – will enjoy a 50pc discount on duty.

The previous limit was 40,000 hectolitres.

Jonathan McDade, head of the beer unit of Drinks Ireland, said the new limit includes a ceiling of 30,000 hectolitres for domestic sale.

“This measure will assist microbreweries with ambitious expansion plans, particularly those looking to increase exports, and could enable international beer consumers to enjoy more craft beer from the Irish market,” he said.

Distillers, meanwhile, welcomed plans to spur increased venture capital investment in startups, which includes dozens of distilleries that have launched in recent years.

Vincent McGovern, head of the spirits division of Drinks Ireland, welcomed changes to the Employment and Investment Incentive (EII) scheme for stimulating venture capital investment in Irish firms.

Budget 2020 will allow EII investors to claim full income tax relief in the first year of their investment.

It also allows investors to double their investment to a maximum of €500,000 if they stay invested for 10 years.

Mr McGovern said these changes would “help smaller distilleries as they recognise the fact that they are not the same as other small companies and that the practicalities of setting up a whiskey distillery are different”.