Finian McGrath (Dublin North Central, Independent)

I accept Deputy Durkan's apology. I would like the Minister to consider another proposal as he prepares the budget. It relates to the cigarette industry. Extra Government revenue of €758 million is possible. The Government will earn €10.4 billion from tobacco excise duty in the next ten years assuming there is no change in the excise structure, no excise increases and no industry price increase, and assuming a decline in duty due to lower consumption and the growth of the value sector at the expense of the premium sector. Tobacco is not politically correct, but I am interested in raising money for the Government. The tobacco industry contributes €1.6 billion in excise or 24% of total excise receipts. Changing the excise structure protects Government revenue and discourages price wars. Moderate and predictable increases maximise Government revenues. Sharp increases in excise threaten Government revenues and strengthen the illicit cigarette trade.

I have put forward three sensible solutions to raise a few bob for the State. I welcome the debate and I hope some of my ideas and proposals on the economy will help us get out of this very difficult situation.

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