Maureen O'Sullivan (Dublin Central, Independent)

I hope this proposal will be progressive and positive. It is strange and ironic to link tobacco and public health in the same sentence, as the harmful effects of tobacco are well known. There is another irony in the sense that the legal tobacco industry brings in very significant revenue to the State and the illicit tobacco trade loses the country equally significant revenue. Another contradiction or paradox lies in the fact that cigarettes are perceived to bring relief for stress and tension, while at the same time they cause other health risks.

As for the illicit tobacco trade, it has been estimated that 27% of all tobacco consumed in Ireland in 2009 was illicit and evaded excise duty. This constituted an increase from an equivalent figure in 2008 of 20%. As a result, the Government lost VAT and excise to the approximate value of €556 million and retailers lost approximately €692 million in sales turnover. The importation, sale and distribution of illegal tobacco products is a major problem for our society and for the Garda Síochána, which makes the point that such criminality also contributes to other criminal activity. In 2009, co-operation between the Garda and the Customs and Excise resulted in the seizure of more than 218 million cigarettes to the value of €92 million. Tobacco smuggling is depriving the State of revenue from the sale of legitimate products and a significant health risk in the illegal trade arises from not knowing the actual tar content of such illegal cigarettes, thus contributing even more health factors. Smuggling also ensures a supply of cheap cigarettes, which pushes people further into their addiction to tobacco.

Any discussion on tobacco must take on the health implications and I trust the HSE will do this. It is known that smoking kills approximately 16 people a day in Ireland and that half of all smokers will die as a result of smoking. Smokers have a 30% higher risk of developing cancer and Irish research shows that 78% of smokers start before the age of 18 and that more than half start by the age of 15. Research indicates that price is the single most important factor discouraging young people from experimenting with tobacco. I note that in Australia, following the imposition of a 25% increase in the price of cigarettes in April 2010, statistics showed that the prevalence of smoking fell considerably. The most frightening finding from the World Health Organisation is that young people and those in lower socio-economic groups are two to three times more likely to try to quit on foot of a price increase. I reiterate that approximately 6,000 people die every year from the effects of smoking. A further point made consistently by the Irish Cancer Society pertains to how tobacco companies link tobacco smuggling and price and use the smuggling issue to convince politicians and high-level officials that the high price of cigarettes is resulting in high levels of smuggling with the consequential freezing of tax on tobacco. The society also states that there is strong evidence to demonstrate that high price is the most effective weapon in reducing smoking and discouraging young people from starting. I will revert to my first point about irony by noting that in 2009 alone, 25% of all excise receipts returned to the Exchequer were generated by tobacco and amounted to the considerable sum of €1.2 billion.

I acknowledge the work of the board to date, while noting that the Bill provides for the Office of Tobacco Control to be dissolved and the functions, staff and so on to be transferred to the HSE. I trust that the HSE will be able to fulfil these roles and responsibilities because in the year and a half in which I have been a Member of this House, it has been involved in many controversies, examples of bad or negligent practice, issues in respect of funding and lack of transparency. I hope it will take on a national anti-smoking strategy. Last year, a second mobile scanner and cutter were procured for the Customs and Excise. The HSE should take on board that 20% of all cigarettes smoked in Ireland are smuggled. Moreover, it should take on the pricing issue and the health implications, with further inputs for those wishing to quit and a particular campaign aimed at girls and young women. I note that Irish people bought into the smoking ban even though it was considered that they would not and it has been highly successful. I acknowledge the legislation that has been enacted previously with regard to age, display and advertising. My final point is that in respect of its financial transactions on this issue, the HSE should demonstrate complete transparency, accountability and value for the funding it receives in this regard.

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