Áine Brady (Kildare North, Fianna Fail)

I thank the Senators for their contributions. I note in particular the concerns expressed about the proposed removal of the mandatory 90 day suspension from the retail register of a retailer who commits an offence. This point was carefully considered when the legislation was being drafted and I am confident that the proposed change will better serve the long-term tobacco control agenda.

A period of suspension from the retail register remains mandatory. The only change is that judicial discretion will apply. The three month suspension remains an option. My officials will keep the operation of this aspect of the legislation under careful review. Senator Quinn's parallel with the effect of a ten minute suspension in a rugby game is apt because this principle influenced Government thinking. A penalty that is imposed is more likely to be a deterrent than a more severe penalty that is not imposed. The proposed change was influenced by concerns that the stricter penalty might not be imposed in practice. It was also influenced by the prospect of a legal challenge on the basis that a three month removal from the register would be a disproportionate penalty but it remains an option for retailers on summary conviction. They will also be liable for a fine of up to €3,000 or up to three months imprisonment. As most retailers can be expected to be compliant it is not envisaged that there will be many prosecutions in the retail sector. The current proposal represents a sensible compromise but my officials will keep it under careful review.

I dealt with Senator Fitzgerald's point about the retail sign, 'no ID, no sale' in my earlier remarks. I understand that some retail outlets are displaying a sign indicating that ID may be required but this does not refer specifically to tobacco products because there is a wide range of restricted products to be found in retail outlets that also sell tobacco. Retailers have said that it is helpful for their staff to have a clear sign to point to when dealing with a troublesome customer and that there is an obvious need to find a solution to this problem. A sign that does not specifically refer to tobacco is an acceptable solution.

The airport duty free retail outlets must comply with all other aspects of the legislation, that all tobacco products must be stored out of sight in a closed container, can no longer be sold by means of self-service and the airport authority must register with the Office of Tobacco Control. There will therefore be a significant change in the manner in which tobacco products are sold in airport duty free retail outlets from 1 July 2009. Airport duty free outlets are a unique form of retail as the shops compete internationally rather than domestically. Tobacco products may be purchased only by passengers leaving the European Union and unlike all other retail outlets they are not aimed at the domestic market.

Duty free tobacco products are not sold alongside confectionery, therefore the subliminal association between confectionery and tobacco is not an issue. Duty free allowances are restricted to people over the age of 18. The sale of tobacco is passport-controlled, thereby restricting it to those over 18. Passenger profiling indicates that only 3.7% of passengers are under 16. Apart from leaving the pictorial list on permanent display there are no additional concessions to the duty free sector.

When the combined text and photograph warnings are introduced the pictorial list permitted to be on permanent display in duty free outlets will incorporate these warnings. Senator Quinn's point about duty free relates more to the diversion of duty free than to the legitimate sales in a duty free environment. This is not a concern in the Irish duty free outlets.

The Revenue Commissioners are responsible for all matters concerned with the illicit trade in cigarettes. They continue to implement a wide-ranging programme of measures to combat this threat, including continuing seizures of illegal products and prosecution of offenders; monitoring of Internet sites and instigating test purchases to identify importation routes; monitoring of sales patterns to identify and investigate irregularities and to target enforcement activity contributing to action at EU level to improve the controls on excisable products in the community; monitoring of sea cargo on the basis of risk analysis seizures; and ongoing monitoring of international courier and air freight services including Internet traffic as well as air passenger arrivals has also resulted in significant seizures.

The purpose of this Bill is to address some legitimate points raised with my Department over the past year. It does not represent any weakening of the Government's position in regard to tobacco control. With the introduction of the 1 July package, when tobacco control measures are compared internationally Ireland is at the forefront.