David Stanton (Cork East, Fine Gael)

I welcome any initiative that discourages smoking, especially among young people. However, will images of the effects of smoking on cigarette boxes be effective in dissuading young people from smoking, particularly with so many illegal cigarettes in circulation which may not have these images?

Many young people value physical fitness. This can be a huge deterrent to smoking, excessive drinking and substance abuse. Sports and out-of-school youth activities, such as those of Foróige, Youth Work Ireland and the Scout Movement, could be used to dissuade young people from smoking. These organisations should be given funding and encouragement to engage with young people because the rewards for society can be huge. Formal programmes on lifestyle issues in schools have a limited effect because it is a captive audience. It is much better to engage with young people.

Recently, I met with Retailers Against Smuggling which gives some startling figures about tobacco smuggling. Up to 23% of all tobacco consumed in Ireland has not had duty paid on it, for example. Illegal tobacco cost retailers €575 million in 2010 alone.

Retailers Against Smuggling also maintains that the State lost €460 million as a result of the avoidance of tobacco duty in 2010. The organisation states that the black market is the third biggest tobacco supplier in Ireland. Some 31% of people over the age of 15 smoke. However, shop sales of cigarettes are down as much as 30%. People are, therefore, smoking but they are either purchasing their cigarettes from illegal outlets or in other countries.

Placing images on packets of cigarettes will have an impact in respect of the sale of legal tobacco products. However, we should tackle the sale of illegal cigarettes in a much stronger way than has been the case heretofore. Retailers Against Smuggling claims that large-scale criminal gangs are smuggling illegal cigarettes into Ireland and selling them here in order to fund their criminal operations. That is another matter about which we should be concerned.

Retailers Against Smuggling also makes an interesting point regarding the sale of illegal cigarettes giving rise to a precedent of increased acceptability among citizens with regard to duty avoidance. If people purchase illegal products, they will not pay the relevant duties in respect of them. The organisation further makes the claim that the sale of illegal cigarettes undermines health policy and regulations as well as a host of different laws.

Many local shops depend on cigarette sales, particularly as they bring customers onto a premises. I accept that we do not agree with this and would prefer if people did not go into shops to purchase tobacco products. When people do seek to purchase cigarettes or whatever in their local shop, however, they often buy other products as well. That is the point being made by retailers.

Illegal cigarettes are being sold at street markets, in pubs and on a door-to-door basis. There does not appear to be a policy to deal with those who engage in this trade. We must take a much stronger line in respect of this matter. The Finance Acts of 2001 and 2005, the Trade Marks Act 1996, the Casual Trading Act 2005 and the Public Health (Tobacco) Act 2002 and the Public Health (Tobacco) (Amendment) Act 2004 are being flouted by those who sell illegal tobacco products.

Retailers Against Smuggling makes another interesting point regarding the law and states that retailers can face fines of up to €1,900 and a potential prison term if they display tobacco products on their premises. According to the information provided to me by Retailers Against Smuggling, the fine for illegal street sellers is €63. In the context of retail registration, retailers can also be liable for fines of up to €1,900, they can be struck off the register and they can potentially face prison. Last year, the average fine in respect of criminals who defrauded the State of excise duties was €527 and any prison sentences handed down were suspended.

Retailers Against Smuggling maintains that there is a need for a smuggling strategy and that a Garda task force must be established to implement such a strategy. It also is of the view that the fines handed down should fit the crime, that street markets should be regulated, that additional resources be provided to the Garda Síochána and Customs and Excise in order that they might deploy additional officers and that there should be a freeze on excise increases.

This is a serious issue. As previous speakers stated, we do not know what many illegal tobacco products contain because there are no controls in place in respect of them. There is a double whammy for those who smoke illegal tobacco products because not only is their health being damaged as a result of their smoking them, it can also be damaged by the other substances these products contain. The Government and the Minister should take action on this issue as a matter of urgency.

I welcome what is being done in the Bill, which represents a first step. However, the matter to which I refer cannot be ignored. I urge the Government to place a great deal of emphasis on positive things such as the promotion of physical fitness, sporting organisations, etc. We must encourage younger people in particular to look after their physical fitness. If people become involved in sport, look after themselves and are health conscious, in many instances they will not smoke.

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