David Cullinane (Sinn Fein) | Oireachtas source

I welcome the Minister to the House. I intended to rise to support the Bill, but having listened to Senators Crown, Norris and Barrett they have challenged my analysis of the proposed legislation. I will listen to the Minister's response before I make up my mind. The Bill has two primary functions, the first is that it provides the Minister with additional powers to combat the promotion of tobacco products. Any measures taken to ensure the advertising and sale of tobacco and tobacco products are restricted are supported fully by my party and me.

I have very deep reservations about the element of the Bill that relates to European law, about which Senator Crown spoke. l will develop that point later.

The aim of the additional powers that have been given to the Minister is to ensure that tobacco products will not be available at a reduced price or for free when people purchase another tobacco product or any other product or service. This allows the Minister to control and regulate the promotion of tobacco products through special offers whereby they are offered free or at reduced prices together with other products. This follows on from the legislation put in place in July 2009, to prohibit all point of sale advertising in retail outlets. This required the storage of tobacco products out of sight of the customer.

Ensuring that tobacco is not available cheaply is very important to deter smoking. Sinn Féin supports this policy. Senators Norris and Crown referred to these provisions as being somewhat cosmetic, covering up the fact that the real substance of the Bill is to deal with the areas which relate to European law. I am not sure if this is the case but I will listen with interest to the Minister's response. I share the concerns of the Senators about those provisions relating to EU law. My colleague in the Dáil, Deputy Caoimhghín Ó Caoláin, highlighted his disquiet about these aspects. While he signalled that the party would not be opposing the Bill on that basis, it underlines the many difficulties this State faces due to the increasing encroachment of the EU and EU law on all areas of our sovereignty.

This Bill amends existing legislation to comply with the European Court of Justice ruling that the setting of minimum prices for tobacco in this State is in breach of EU law. Our legislation required that the retail price of cigarettes be at least 97% of a weighted average, based on sales of each brand the previous year and the recommended retail price. This was covered under provisions of the Tobacco Products (Control of Advertising, Sponsorship and Sales Promotion) Act 1978 and the Public Health (Tobacco) Act 2002. However, I understand that under EU competition law, this is not allowed and manufacturers and importers must be free to set their own prices for their products. Our policy in this area is sensible and prudent. It cleaves to the aim of seeking to deter tobacco smoking, particularly among the young. Therefore, it is regrettable that this has been struck down as being contrary to European law.

We will take the opportunity to record our unhappiness at the way in which this directive has been applied. The EU Directorate General for Competition is massively influential and powerful within EU structures. The ideology associated with competition being a wholly positive influence has permeated the EU at all levels. Many are unwilling to consider its ill effects, many of which are economic ill effects. However, in this case, it is one of infringement in the area of public health considerations.

Many will make the point that we can continue to tax as we please, and this is true. However, it will not always be correct as there is a strong lobby within Europe, particularly among federalists, for tax harmonisation. In those circumstances, there will be an impact on our tobacco pricing policies. We are opposed to the implementation of this directive but we accept that it is something over which these Houses do not have control.

I support the Bill but I will listen to the Minister's response before I make up my mind.