Mr. John Freda:

I will answer some of the questions about profits. In 2012, we had a turnover of €670 million and we handed the Government €570 million in excise. Our net profits after all of our activities was €14.9 million. We are a market leader with 50% share of the market. I am not quite sure where this figure of €150 million is derived from because it is certainly not what I saw from the sum of the numbers that were being discussed here.

I was asked whether I smoke and I do not smoke. I was asked if I have children. Yes, I have children. One of my sons is flirting with smoking. He is 18 years. On the question of whether he started smoking before that age, yes, he did. On the question whether I want him to smoke, no, I do not. We have a conversation around his smoking and like any other family dealing with that subject, he is an 18 year old adult and he needs to be treated as such. He will make his choices based on that. He understands the risks, as I do, but I am not imposing my will on him. It is a risk he is managing himself.

On the question about the Silk Cut pack, as Mr. Steven Donaldson highlighted with regard to the Vogue pack, we have that product available as a slims pack which is targeted at adult females who understand the risks and who choose to smoke.

In reply to the question about ingredients, similar to what Mr. Donaldson said, our ingredients are totally visible for anyone who wishes to see what is contained in our products. We are very transparent in that way. We share the concern about the illicit trade and that concern is fuelled by the evidence. We see the evidence of that trade growing in Australia as a result of plain packaging and it is a concern. We have to recognise that Ireland is a country with the highest levels of illicit trade. We cannot ignore that fact, put it to one side and say that it is not relevant in this conversation.

Senator van Turnhout highlighted price as one of the key measures. One of the key impacts and opportunities for illicit trade and the reason criminals are involved is to undermine all of the health initiatives by leveraging price. Their price is under €4 for a packet of cigarettes sold on the black market. They prey on the underprivileged parts of our society which are the most vulnerable. The committee's reports highlight that these are the people most at risk and among whom the prevalence of smoking is highest. I do not think the illicit trade can be dismissed, be put it to one side and say it is not relevant in this conversation. We genuinely believe that plain packaging will make the situation worse. It will not address the public health objectives. The committee will have heard all of us refer to other incidences in other countries which fundamentally address youth smoking rates and deal with the key issues at the core which are peer pressure and availability. We are not dealing with the issues that are a problem in Ireland. I refer to access, for example. Children here can get hold of cigarettes far too easily. We need to establish a culture where a child cannot get his or her hands on cigarettes. However, that is not what is being achieved with plain packaging which is to put a plaster on the situation. We accept that we are regulated.

A point was made about how we are replacing our smokers. We accept that we are operating in a declining market. We operate in the legal side of this market. We accept that the market declines in line with the measures which are implemented - and rightly so - and we said so in our statement, such as the measures to educate smokers and to encourage smokers to stop smoking. We accept the market decline and we compete for what is left in the legal market which is the only thing that interests us. We were asked why are we opposed to plain packaging. We are opposed to plain packaging because it stops us from competing. We have nothing else left. We have no marketing tools and the pack is the only thing that allows the consumer to make an informed choice about what product they buy. That consumer is an adult smoker who understands the risks.