Ms Josephine Feehily:

The figure of €43.3 million was the value of cigarettes and €1.95 million was the value of the roll your own tobacco that was seized.

I think the Chairman is aware that we have the highest level of tobacco taxation in the European Union, and second only to Norway in the broader European area. It is clearly a profitable area for attention by certain elements and it is risky. I told this committee previously that my objective was to contain the problem, and that is the best we can commit to do in an environment of free movement of people and European rules which support and allow personal imports of duty paid cigarettes. One can buy cigarettes for own use elsewhere in Europe for €2 to €3 and bring them into the country.

This is one area in which we have an analysis of the gap. We have been doing surveys for many years in conjunction with the Office of Tobacco Control. A private company conducts surveys for us. The most recent data show that the untaxed tobacco consumption in Ireland is about 20%, comprising 13% illegal and 7% personal imports of tobacco. It has been in and around that level. The previous data were 14% and 6% for personal imports, and prior to that they were 15% and 6% personal imports. The figures for the same study over time have been there or thereabouts for many years and the Office of Tobacco Control has a different interest in this in terms of tobacco consumption. About 13% of the cigarettes consumed in Ireland are imported illegally. We have been containing it at that level by interventions involving international intelligence.

We have had very substantial seizures. A couple of years ago, the biggest seizure in the history of the EU took place in Ireland. We conduct blitzes locally. Our local staff visit markets and shops, etc. We have invited traders on many occasions to give us concrete intelligence. To be honest, it has not been forthcoming. They will tell us that tobacco is being sold, but it would be helpful if they told us the registration number on the white van. They are reluctant enough to give us concrete information on foot of what they observe. The more concrete intelligence we have, the easier it is for us in terms of resource deployment. We have had some very successful prosecutions in the tobacco area in recent years. Some of them have resulted in criminal convictions and custodial sentences. We are managing this issue on all of those levels. We are trying to prevent imports, catch sellers and secure prosecutions. We have been containing it at the same level for a number of years.