Dáil debates

Tuesday, 10 October 2017

Financial Resolutions 2018 - Financial Resolution No. 1: Tobacco Products Tax

 

9:35 pm

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputies Calleary, Jonathan O'Brien, Sherlock, Breathnach, Boyd Barrett, Mattie McGrath, Danny Healy-Rae, Harty, Fitzpatrick, McLoughlin, Neville and Troy for contributing on this financial resolution debate. I will try to respond to a number of the points that were raised. As the Minister for Health, the Deputies will not find anyone in the House more eager or enthusiastic to have a debate on the wider issues relating to smoking and tobacco from a public health policy point of view. My colleague, the Minister of State with responsibility for health promotion, Deputy Catherine Byrne, and I would welcome such a debate. I hope that, when the House comes to having a wider debate on alcohol from a public health perspective, there will be such an appetite as well, given that we must get serious about that issue if we want to tackle it.

The Deputies who suggested that this is not just about the price, but also about public health measures, were correct. If our only measure to tackle tobacco and smoking levels was to increase the price, it would be wholly inadequate. That is not the case. I wish to be the first to acknowledge that this country, on a cross-party basis and due to successive Governments' efforts, has made real progress on this public health agenda in recent years.

High taxation has an important role to play, but there has been a range of health initiatives. In 2004, we had the ban on tobacco advertising and sponsorship and the smoking ban. In 2007, we had a prohibition on the sale of cigarettes in packs of fewer than 20. In 2009, we had a ban on advertising and the display of tobacco products in all retail outlets. In 2013, we had the new combined text and picture health warnings to which Deputy Boyd Barrett referred. We have the Tobacco Free Ireland policy, which includes a number of policy and legislative proposals aimed at reducing the prevalence of smoking. The aim is to have a tobacco-free Ireland by 2025. There are more than 60 recommendations, all aimed at denormalising smoking in society so that less than 5% of the population is smoking by 2020. As part of Tobacco Free Ireland, my colleague and friend, Deputy Corcoran Kennedy in her time as Minister of State with responsibility for health promotion, led the introduction of standardised plain packaging for all tobacco products. This was a progressive measure that will make a difference, for which I congratulate her. Since 30 September, tobacco manufactured for retail in Ireland must comply with these requirements. Relatively recently, we also launched a QUIT campaign. Many Deputies will have come across the "I Will Survive" ad on television and radio.

A number of Deputies referred to the consumption of and trade in illicit tobacco. This is an issue for people around the country, in particular Deputies living in Border counties. I assure the House that cracking down on tobacco smuggling remains a high priority for the Government. The illicit trade undermines legitimate businesses, drains resources from our Exchequer and undermines our public health strategy.

In 2016, Ipsos MRBI conducted a survey on behalf of the Revenue Commissioners and the National Tobacco Control Office. This showed that the percentage of illicit cigarettes had been on a downward trend from 15% of the total consumed in 2010 to 10% in 2016. Last year, Revenue seized approximately 44.5 million cigarettes with a value of €23.5 million. The high level of seizures in recent years reflects the ongoing enforcement action by the Revenue Commissioners.

The House has also taken a number of legislative actions to support the Revenue Commissioners. The Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the content of postal and courier packets. The Finance Act 2013 introduced a new offence and forfeiture measures relating to the illicit production of tobacco. The Finance (No. 2) Act 2013 provided that a person suspected of an offence of dealing in, or with, unstamped tobacco products must provide information to a Revenue officer or a garda and may be required to present any tobacco product concerned for examination. The powers that the House has given the Revenue Commissioners and An Garda Síochána, working together and with international agencies like Europol, continue to make a difference in the crackdown on the illicit trade. That is important.

I noted Deputy Jonathan O'Brien's comments on whether this measure would accrue the figure in question. His party had a different figure - I respect its right in that regard - in its budget proposals, but the Department of Finance informs me that, in recent years, the additional tax revenue forecasts using the same price elasticity used for this year's forecast were realised and that the projections that we made last year for 2017 point to a similar positive outcome. In this regard, Revenue has indicated that a large volume of tobacco products are being cleared from warehouses and that an increase in receipts is expected for the remaining months of this year. Current estimates from Revenue are that tobacco receipts will meet this year's forecast by year end. While I take the Deputy's points, the Government is satisfied that the forecast is solid. If there is a more dramatic shift in the level of consumption than is evident currently, it would be welcome from an overall health and well-being perspective, but the forecast model for this and last year does not tend to show that.

Deputy Sherlock raised the issue of nicotine replacement therapies. I accept that a cost is associated with them. We want to do everything that we can to support people who make the decision to quit. Nicotine replacement therapies and other evidence-based cessation medications are available on the General Medical Services, GMS, scheme to patients with medical cards with the minimal prescription charge. We are reducing prescription charges in the budget. Obviously, how much that costs the GMS every year varies depending on how many GMS smokers seek and receive this support from their GPs to quit, but it is important that this information be out there.

All in all, this is a positive measure for the health of our nation as we continue to work together to reach our aspiration of making this country tobacco free by 2025.

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