Oireachtas Joint and Select Committees

Thursday, 7 March 2013

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance Bill 2013: Committee Stage (Resumed)

10:00 am

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

In principle, we in Sinn Féin do not oppose the increase in the price of tobacco, particularly if it is genuinely intended to change attitudes and behaviour in society. However, the reality we face is that the market has been flooded with illegal cigarettes which are sold on the street. That is the case in most larger towns and some small ones. There is easy access to illegal cigarettes which causes a number of problems. The State loses revenue through taxes and so on and because the trade is illegal it puts a strain on Garda resources in policing the issue. In addition, if somebody can buy a pack of cigarettes for €4 or €5, increasing the price will not reduce consumption or usage of the product because the danger is it will drive people to the underground market. In principle, we do not oppose increasing tobacco prices, but instead of the section providing for a grab of additional revenue for the Exchequer, the revenue should be ring-fenced to try to change behaviour. For example, if the additional money accruing from this increase was ring-fenced to target the black market sale of tobacco, I would support the proposal. That is the reason I opposed the section. While increasing the price of cigarettes is fine and there are many reasons that should happen, particularly to lower the incidence of cancer and so on, what should be done, if we are genuine about this, is that we should ring-fence the money to make sure we tackle the issue of the sale of illegal cigarettes in most large towns and cities.

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