Oireachtas Joint and Select Committees

Thursday, 15 November 2012

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Tackling the Black Market and Retail Crime Report: Discussion

11:00 am

Mr. Stephen Lynam:

I would add a further point on the subject of ancillary purchases. If a person sources a product on the black market as opposed to the legitimate retail chain, it results in the loss of ancillary purchases in that a person who purchases a packet of cigarettes in their local store would also probably also purchase a newspaper or some other small items. When the legitimate retail chain is taken out of the picture for the main product purchased, be it cigarettes, there is a loss of ancillary product purchases and the State also loses out on revenue from those sales. Similarly, if a person decides to source cigarettes or counterfeit clothing from a man with a white van who drives around their estate, once that customer is in the bag, so to speak, that criminal can knock on that person's door and sell everything else. There is anecdotal evidence to suggest that in some areas, perhaps socially deprived parts of our cities, entire shopping lists are being sourced through criminal acts. We are seeing that through the increase in shoplifting. Although the main purchase may only be one product, there is the potential for an explosion in those sales once the criminal gang or element has its foot in the door and the State can lose out in a much bigger way.