Jillian van Turnhout (Independent) | Oireachtas source

I thank the Garda, the Revenue Commissioners and the HSE representatives for their presentations. The message I will take from the presentation by the Garda representatives is that the Garda, the European Anti-Fraud Office, OLAF, and many others believe there is no evidence to indicate that the introduction of plain packaging will lead to an increase in the illicit trade of tobacco products. That is the clear message that must go from these hearings.

In looking at illicit trade while researching and preparing to deal with this issue, I was startled to see that in 2002, evidence was given before the United Kingdom Public Accounts Committee by ASH UK which clearly showed that exports of tobacco to Andorra, for example, increased from 13 million in 1993 to 1,520 million in 1997. Every Andorran man, woman and child would have to smoke 130 cigarettes a day to make up that amount. That is a real example of the way this illicit trade is taking place. There is an over-supply by tobacco companies to certain countries. Last October, the Right Honourable Margaret Hodge appeared before the UK Public Accounts Committee and stated that the supply of some brands of hand-rolling tobacco to some countries in 2011 exceeded legitimate demand by 240%. The evidence is there for us to see.

Before asking specific questions I note what the HSE representative said about the size of the packets, which we will take into consideration in our deliberations. My questions are for the Revenue Commissioners, and if other witnesses wish to respond I would be happy to hear their comments. With regard to the Revenue Commissioners, has there been a decrease in resources to tackling smuggling? We all know that there have been cuts in some areas in the recession. If so, what has been cut? How much does Ireland spend each year on tackling smuggling? I was surprised when I saw the number of prosecutions. With regard to tracking and tracing, which is one of the key provisions of the World Health Organization illicit trade protocol, which Ireland has signed up to, what is the readiness of the Revenue Commissioners in that regard?

I refer to Codentify, a system developed by a major tobacco company, Philip Morris. The company says it is a unique, secure 12-digit code printed onto the side of packages, but Philip Morris is donating money to organisations and agencies such as Interpol to promote and develop Codentify. I am aware that organisations such as the Irish Cancer Society see that as a major conflict of interest. What is the Revenue Commissioners' view on Codentify? Does a system developed by the tobacco industry not raise concerns about compromise and reliability?

I have a question on forestalling, which is a tax avoidance measure identified in the UK. It is a practice whereby excessive quantities of cigarettes are removed for home use on payment of duty because an increase in the rate of duty is expected. Is there any evidence of forestalling in Ireland? Finally, has the tobacco industry been involved at any point in training or advising the Revenue staff on illicit trade?