Dáil debates

Wednesday, 13 February 2013

Topical Issue Debate

VAT Rates

2:55 pm

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour) | Oireachtas source

On the day that is in it, Ash Wednesday, I thank the Leas-Cheann Comhairle for allowing me to introduce this Topical Issue. I am keen to discuss how we might be able to help people. I know many are struggling with their conscience today and trying to decide whether they should give up cigarettes. Taking up smoking is easy, but it is remarkably difficult to give it up.

Like many others, I took up smoking in my teens because my peers smoked. We were all trying to look cool at the time. Unfortunately, the years have proved it to be a rather unwise decision. Like anyone else of that age, I never looked to the future and was oblivious to any harm caused, but harm was being done unbeknownst to me.

Science has come up with new methods aimed at helping people to give up smoking. A range of products are now available for sale to help those who find themselves hooked on cigarettes to such an extent that it is a multimillion dollar worldwide industry. If the Government and society seriously want people to give up smoking and live healthier lives, they should try their best to help those who wish to stop. Currently, all of the products aimed at helping people to give up smoking, including mouth sprays, patches, chewing gum and artificial cigarettes, are subject to a full VAT rate of 23%, whereas over the Border in Northern Ireland and Britain the Chancellor of the Exchequer has reduced the VAT rate on these products to a special rate of 5%.

I call on the Minister of Finance to consider introducing a special rate of VAT to encourage people to kick the habit. This may seem like a costly move, but it should be weighed against the current spend on trying to heal those with smoking-related illnesses, estimated to be €1.5 billion. According to figures released by the Irish Heart Foundation today, the Government spends over 100 times more on treating tobacco-related illnesses than on services designed to help people to quit. The foundation has also stated more resources are needed if we are to reduce the 14 deaths every day from smoking-related illnesses.

Owing to legislation enacted in recent years we have made great strides in reducing the number who smoke, but we have a long way to go. The problem with smoking is that the damage is often incremental and, therefore, giving up is put on the long finger. Thankfully, new legislation means that, from now on, all cigarette packets must display graphic images illustrating the long-term effects of nicotine and tar on our vital organs. This method has proved to be effective in communicating the true consequences of smoking and has worked especially well in Australia.

Figures from ASH Ireland indicate the prevalence of smoking in Ireland is somewhere in the region of 26% to 29%. These rates are far too high. The banning of smoking in public places has been a tremendous success. I have remarked already that a special rate of VAT would be of great assistance in helping people to stop. It has been noted that the cost of using therapies to help people to stop smoking has kept some from giving it up. Furthermore, nicotine replacement therapies are sold from behind the counter in pharmacies, whereas in the United Kingdom and other countries they are sold off the shelf in a wide variety of stores, not only in chemists, thereby easing the burden of buying them. I hope the Minister of State will take my suggestion on board.

Comments

No comments

Log in or join to post a public comment.