Brian O'Shea (Waterford, Labour)
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Question 55: To ask the Minister for Finance if he is satisfied in regard to the level of supervision exercised by the Revenue Commissioners at points of entry, in particular in regard to the illegal tobacco trade; if he will report on the estimated value of tax revenue lost through the import of counterfeit cigarettes in 2005; and if he will make a statement on the matter. [24955/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that manning levels at points of entry into the State and enforcement strategy generally are continuously monitored and reviewed in line with the perceived threat or risk of evasion. This applies to all areas that the Revenue Commissioners have responsibility for policing including excisable products that include tobacco products and prohibited goods that include drugs.

In the case of cigarette and tobacco smuggling, during 2005, a total of 51.28 million cigarettes and 1,108 kilograms of tobacco were seized. Seizures up to the end of May 2006 amounted to 26.5 million cigarettes and 972 kilograms of tobacco compared with 22.7 million cigarettes and 179 kilograms of tobacco that were seized during the same period in 2005. In Dublin Airport alone, approximately 2 million cigarettes have been seized by Customs each month since the beginning of the year. In late 2005 Revenue took delivery of a Mobile Container Scanner and this has significantly enhanced detection capability. I can advise the Deputy that the scanner has been instrumental in identifying over 7 million cigarettes concealed in maritime containers.

As regards the amount of revenue being lost due to the penetration of the market by contraband and counterfeit cigarettes, while this is always difficult to calculate, I am informed by the Revenue Commissioners that cigarette clearances on which excise duty has been collected up to the end of May 2006, show an increase of 0.3% compared with the same period in 2005. In addition, following the detection of bogus Irish tax stamps on a total of 5.65 million counterfeit cigarettes smuggled from Ukraine and China last year, a nationwide operation was mounted in November to ascertain if cigarettes with bogus Irish tax stamps were being sold on the market. In the course of this operation 837 premises, which included retail shops, pubs, off-licences, nightclubs and other outlets, were visited and no such packs were found. A new form of tax stamp with additional security features has been introduced in the meantime.

It is the view of the Revenue Commissioners that the level of penetration of the market by contraband and counterfeit cigarettes remains low.