Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Deputy Donnelly explained the position very well. We did a major restructuring last year. When we did the research we also provided for a minimum rate of excise to avoid a downward leveraging of the price. This minimum rate ensures there is a threshold beyond which the cigarette companies will not lower prices further. We built this into the restructuring.

Many issues arise with regard to the tobacco and cigarette business, for example, smuggling. I am not sure about the statistic that every €1 increase in the price of a packet of cigarettes reduces smoking. It is possible that what appears to be a reduction in consumption is simply a transfer of consumption to smuggled cigarettes.

I am sure we will debate this matter again, when we can examine it further. I am not moving on it today.