Oireachtas Joint and Select Committees
Thursday, 8 November 2012
Joint Oireachtas Committee on Health and Children
Pre-Budget Submissions: Discussion with Community and Voluntary Groups
10:40 am
Mr. Chris Macey:
I thank Senator Crown for his comments on tobacco. I endorse everything he said, which would represent a better future than the present world. Regarding Senator Crown's comments on the tobacco industry and its PR machine, the big red herring is that tax is fuelling smuggling. Evidence from the UK this week contradicts that point. The UK has had a tax escalator over the past ten years of 2-5% and cigarettes in the UK are more expensive than they are here. The price equates to approximately €9.30, when converted, in the UK and €9.20 here. At the same time, the UK has reduced the smuggling rate from 21% to 9%. It has done so by enforcement. While Ireland has laid off hundreds of customs officers, the UK has introduced better enforcement and spent money on cessation activities in a way Ireland does not. It has reduced the number of smokers by 2 million and child smokers by 50%. It has reduced its smuggling rate while increasing taxes. The UK takes in an extra £2.9 million for an outlay of £300 million in that area.
In response to Deputy Naughten's question, there is an EU issue in terms of a regulator. We have had discussions with the Revenue Commissioners and the Department of Finance and both sides are checking out the legal aspects of it. They are interested in the proposal but there is legal work to be done. As a concept, it's time is coming.
Deputy Catherine Byrne's comments on people smoking outside hospitals with drips shows the addictive nature of it.
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