Seanad debates

Thursday, 21 March 2013

Finance Bill 2013 [Certified Money Bill]: Committee and Remaining Stages

 

2:50 pm

Photo of Trevor Ó ClochartaighTrevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

Go raibh maith agat. I take on board the points made by both Senators but as the Minister of State has outlined the rationale behind the section, it is a money raising exercise by the Department of Finance. I do not think its introduction is for health reasons. If this money was being collected for health reasons, it would be ring-fenced and put into a heath budget that would support organisations such as the Irish Cancer Society and other organisations in doing the work they need to do. We all want to reduce the number of people who are dying from cancer every year. The money generated by the excise increase will go straight into the coffers of Government. The increase in the cost of a packet of cigarettes is a certain deterrent but it is disproportionate in that it will hit those on lower income much more. If somebody on a lower as opposed to a higher income is smoking 20 cigarettes a week, the proportion of his or her income taken up in excise duty is higher. This is a disproportionate tax which mirrors many of the other measures introduced in the Finance Bill.

We all want to see a decrease in the numbers smoking, we want to see a decrease in the number of hospital bed-days to treat people with cigarette smoking illnesses. The Minister has stated clearly this is a revenue generating measure. I would prefer the Government to look at other options, such as taxing the cigarette companies that are making significant profits as I believe it could have found a measure to collect ยค25 million from these companies as opposed to hitting the already hard-hit consumers.

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