Bertie Ahern (Dublin Central, Fianna Fail)

Yes. Even in terms of the population, it is having an impact. Information from very extensive surveys that have been carried out by the Office of Tobacco Control indicates that the proportion of the population that smokes is 24%. This compares with 27% five years ago and 31% eight years so it is coming down proportionally as well.

Of course, the survey shows the proportion of smokers varies considerably between age groups, with the highest incidence being among young people between 19 and 35. Some 32% of them smoke. The logic put forward by the Irish Cancer Society and others is that by bringing in this tax, the quartile of the people one affects consists of young people. If they do not take it up when they are young, one has a chance of that running through. Alternatively, if they get into it when they are young, one will never get them out of it or, at least, it will be a far more difficult challenge. There is a very high incidence of smokers in the 15 to 18 age group — the percentage is over 17%. While the overall downward trend in the number of smokers is welcome, it reflects the wide range of measures taken over the years to discourage the habit and the scale of the threat it still poses to public health.

Today's increase of 30 cent will ensure taxation policy continues to play the part about which I spoke and it should be particularly helpful in discouraging younger smokers. That is really the challenge. Consumption fell by 5% last year and, hopefully, the figure for this years will be 1%. I suppose that 1%, like everything else, always sounds a bit meaningless but a fall of 1% represents 59 million less cigarettes. Even if we do not include a few of our colleagues, it is still a fair cut in consumption.

In respect of excise duties on tobacco, fiscal policy is part, of course, of the overall health strategy aimed at discouraging smoking through other means, increasing prices in real terms. Groups like the Irish Cancer Society and ASH say the increase should be far larger. The Irish Cancer Society would like us to increase it by €2. I have tried for many years in different capacities to get the social partners to agree that, like other countries, we could leave it out of the inflation figures. If we get agreement across society, we could do this and it would have a far more significant effect.

In fairness to Deputy Stagg, he is consistent in his argument that it would have a bigger effect but, obviously, inflationary pressures do not allow us to do that. The Minister for Health and Children, like previous Ministers, would argue for a far higher increase but we just cannot do it in circumstances where it would have an inflationary effect, which would not work well for the economy. Other countries have managed to deal with that. We try that on a regular basis and tried it again this year but it is just not a runner.

In respect of illegal tobacco products, the Revenue Commissioners continue to implement measures to combat this threat. These measures include continuing seizures of illegal products, prosecution of offenders, monitoring the Internet sites, instigating test purchase to identify the importation routes, monitoring of sales patterns to identify and investigate irregularities, targeting enforcement activity and action taken at EU level to improve the controls of excisable products in the community. All of these measures are being taken to curb it.

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