Seán Ardagh (Dublin South Central, Fianna Fail)

This is a welcome move on the part of the Government that will in some way help to reduce the burden shouldered by people in terms of the cost of home heating oil.

On the cost of cigarettes, I recall that when I was eight years old one could go to the local shop and buy a single Player's cigarette. In his budget speech, the Minister indicated that he intends to encourage people to sell cigarettes in packets of 20 in order to discourage young people from taking up smoking. If, as the Taoiseach stated, the price of a packet of 20 cigarettes is to rise to €7.05, this will act as a significant deterrent in the context of discouraging young people from smoking.

There is no doubt that the sale of tobacco generates significant amounts of money for the Exchequer. The figure in this regard currently stands at €1.2 billion and will increase by €100 million this year. The intention behind the increase in the cost of cigarettes is health-motivated and represents an attempt to try to reduce the number of cancers and the level of heart disease among citizens. The Irish Cancer Society was seeking a €2 increase in the price of a packet of 20 cigarettes. I am sure the Minister for Finance would have liked to increase the price by that amount, if for no other reason than to protect people's health. As outlined by the Minister, a difficulty arises in the context of inflation and the effect an increase in the price of cigarettes has on the rate of increase in the consumer price index, CPI. The social partners must take on board what the Minister suggested, namely, that the price of cigarettes be removed from the CPI.

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