Joe O'Reilly (Fine Gael) | Oireachtas source

I welcome the Minister to the House. The proposed legislation is very welcome and timely. He is to be congratulated on that.

As this is Second Stage, I will make a couple of initial general comments before getting more specific. It is worthy of stating, and should be acknowledged, that we have made great strides in reducing cigarette smoking in the population and the culture of acceptance around it. That has all been very well achieved. It is appropriate to acknowledge the role of the Tánaiste initially in banning cigarette smoking in public places, including hostelries etc. While that was initially unpopular, it has proven to be the right thing to do and has proven to be a success. Sadly, and one does not like doing these things, the acceleration, or whatever the term is, of the increase in the price of cigarettes at budgets over the years has been a success. It is correct that we now address the vaping issue. I am completely in support of that. Vaping materials should not be sold to young people under the age of 18. It is a sina qua nonfor good public health practice and this legislation should be done. It will be difficult to administer but that is not a reason to not face the challenge.

I will make specific comments based on conversations I have had regarding the legislation. The relevant people and those directly on the coalface in this matter is the Convenience Stores & Newsagents Association, CSNA. It represents 1,500 stores throughout the Republic, employing in excess of 35,000 people who are both full-time and part-time workers. Its members have front-line experience in retailing and the behaviour of tobacco manufacturers in incentivising sales. As public representatives and community leaders, we should also acknowledge such retailers are at the front line of sponsoring local good causes in their communities and providing employment for local students, which helps them through university etc. That has to be good. I assume that my good colleague and friend, Senator Carrigy, is generous in his sponsorship. I have not heard to the contrary in the locality where he is a significant retailer. Retailers do a lot in that sphere for which they should be acknowledged.

The CSNA is supportive of the Bill but believes it could be strengthened in places. I ask the Minister to take this on board on Committee and Report Stage, particularly when it comes to the sale of big boxes of cigarettes, or packs over the size of 20. As Senator Carrigy said, it was a great initiative to get rid of the sale of ten packs but at present, under law, tobacco manufacturers and not retailers are allowed to set the price of tobacco products. This gives tobacco manufacturers the power to incentivise the sale of bigger boxes, that is, in packs of 30, 35 and 40, which are cheaper on a per cigarette basis than a box of 20 cigarettes. A pack of 20 cigarettes costs approximately €15 and a pack of 35 is approximately €22.50. On a strict pro ratabasis, this should retail at €26.25. Instead, the consumer is saving €1.05 and the Exchequer is losing both VAT and the ad valoremtax on this promotional price, which is determined by the tobacco industry. Under law, the retailer cannot sell the product at any price higher than the set price. This is the only product within the shop on which the retailer cannot set the price.I ask the Minister to consider it because I know his ambition is to get this right. The advice of retailers on the ground is interesting in this regard. The Minister might consider that as an amendment or as future legislation if it is not possible to amend this legislation to that effect. It is certainly an anomaly that needs sorting.

Figures from the Revenue Commissioners show that the sale of large boxes of cigarettes have increased substantially since their introduction in 2012, now accounting for 35% of all cigarette sales. It is, therefore, a significant issue and the figure is quite significant. The difference in price is significant. It might not be in objective terms, but it is to the people here. I ask the Minister to look at it. I genuinely respect his bona fides in this area so it is a matter of us all collectively getting it right. Sales of big boxes are driving consumption and addiction, making it harder for the Government to achieve its target to eliminate smoking. Obviously, that is a logical corollary. Similar to the ban of packs of ten cigarettes, will the Minister take the opportunity to ban big boxes? That is basically what I have been asking for. I look forward to the Minister’s response on that.

I agree with my colleague, Senator Carrigy, who has front-line experience, that the Revenue Commissioners would be best placed to collect this licence. I also agree with the request of traders that there might be a moratorium when we are removing under-18s from sales of these products and that there would be a period for retailers to adjust to that reality if they have 16-year-olds or whatever working for them at the moment. That is a consideration.

I thank the Minister for his time. It is great that we have this legislation. We should all put our money where our mouth is, if you like, and enthusiastically support this Bill, which I certainly do.