Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Gabhaim buíochas le gach éinne a labhair ar an rún seo. I thank Members. Deputy Kelleher spoke in respect of this being a public health issue, which it is. That has clearly been the focus of all Governments over the years. Deputy Barry referred to a proper cessation programme. The programme is working reasonably well. Deputy Murphy mentioned patients who die from cancer, of which there are 5,200 each year. Everybody knows somebody who has had to deal with this problem and are suffering from it. The health benefits of not smoking are exceptional. Labhair an Teachta Ó Snodaigh go maith as Gaeilge.

Deputy O'Sullivan mentioned that prevention programmes could be better and that, in particular, education needs to focus more on this. Deputy Harty spoke of the nature of the cancers this brings about. We recall advertising and then smoking being banned in certain venues, which everybody supported and which has made such a difference to meeting rooms throughout the country.

Deputy Ó Laoghaire mentioned the difference in interpretation of the 50 cent increase and that it might result in a decrease in revenue of €44 million. The Revenue Commissioners ready reckoner on that score provides for a range within which an increase in excise and tobacco may result in increased or reduced revenue revenues. It reflects the possibility that an increase in the price of cigarettes could result in a disproportionate change in consumer behaviour. The Minister for Finance has made no secret of the fact that in recent years increases in excise duty on tobacco have been testing the boundaries of diminishing returns. However, to date the revenues from tobacco have been holding up and the increases provided for in recent years using the same price elasticity used for the 2017 forecast have been realised, and the predictions for 2016 point to a similar outcome.

It has to be pointed out that increases in tobacco excise, as well as raising revenues, are designed to meet the health objectives of reducing smoking prevalence. On this basis, any reduction is more than compensated for by the health benefits and consequent savings that will arise in the health sector. In the budget announced today, there is a significant first element of Healthy Ireland dealing with smoking, obesity, diet, activity, energy and all of the things that have a bearing on the mental and physical well-being of our population. Deputy McGrath referred to ring-fencing this money.

It is important to note that more than 2,000 people, between Revenue and Customs, are involved in the detection of smuggling which is a sophisticated business with lucrative rewards. Obviously, the seizures of cigarettes over recent years says it all. The strategy that Revenue and Customs employ includes a range of measures that are designed to complement each other in identifying and targeting the supply and demand sides of the market for illicit tobacco products with a view to seizing those illicit products and prosecuting those responsible. The key elements of that are developing and sharing intelligence on a national, EU and international basis, developing analytics and detection technologies and ensuring the best appointed resources at the point of importation and inland to intercept and seize illegal products and detect and prosecute those involved.

There is an incentive to bring non-Irish duty-paid tobacco products into the State from other states. Under EU law, a person may bring in duty-paid tobacco products purchased in another member state without paying Irish tax provided the cigarettes are purchased for the person's own use and are transported and accompanied by that person. Recent surveys by Revenue suggest some 6% of cigarette consumption in Ireland is accounted for by such purchases abroad. The quantity of cigarettes that a person may bring into the State duty-free from outside the EU for personal use or from territories where EU rules on VAT and excise duty do not apply is limited to 200.

Since 1 January 2014, Ireland has utilised what is known as Article 46 of the EU excise directive of 2008 which allows member states to impose a quantitative restriction of 300 on the number of cigarettes that may be brought in from those member states, that is, Bulgaria, Croatia, Hungary, Latvia, Lithuania and Romania, that have not yet notified the Commission that they have reached the EU minimum tobacco product tax levels. These member states are expected to achieve those minimum tax levels by 31 December 2017.

I could go on, but we have listened carefully to the suggestions made by Deputies. I thank them for their contributions.

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