Seanad debates

Thursday, 24 September 2009

10:30 am

Photo of Feargal QuinnFeargal Quinn (Independent)

There was an interesting figure in the Commission on Taxation report in regard to tobacco smuggling. What interested me was that the amount of money the nation has been getting from tobacco revenue has been coming down in recent years, but what I did not know was that tobacco consumption is going up. The only way this can happen is with counterfeit and imported illicit cigarettes. I was surprised at the figures. The figures stated that approximately €65 per carton of cigarettes is lost by the State every time a carton is illegally imported. The effect is somewhere between €500 million and €750 million per year. I was startled by those figures.

The other fact that surprised me, and of which I was not aware, was that these cigarettes are not just illicit or smuggled cigarettes, but many of them are counterfeit cigarettes that contain 75% more tar, 28% more nicotine and 63% more carbon monoxide than legal cigarettes. There are two things we should be doing. We should be publicising that fact and making sure that steps are taken to ensure we reduce the amount of illicitly imported or counterfeit cigarettes. The fines and steps that can be taken are the sort of action we can take. The Garda are working very hard on it, but I am not sure we are giving it the support it needs.

During the last number of days the Minister for Communications, Energy and Natural Resources, Deputy Ryan, said he was introducing a postal code system. I understand it will cost some €22 million. It may well be very worthwhile. I noticed that the Communications Workers Union is concerned about it and is not sure why it is proposed. The vast majority of the public I meet are unsure as to the benefits of this proposal. There will probably be a substantial benefit from it. If we are going to introduce this I suggest the Minister, Deputy Ryan, should come into the House and let us have an explanation on the cost of it and why we will do it. There are 1.8 million addresses in Ireland and they will all have to have a postal code system. I am sure there are benefits to it. There are benefits to the nation as a whole. Let us make sure we debate the matter and understand what we are doing.

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