Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 94: To ask the Minister for Finance the number of cigarette seizures since the introduction of the point of sale display ban; the monetary value of these seized cigarettes since the introduction of the ban; if his attention has been drawn to the fact that the introduction of the point of sales display ban and the deterioration in the economy have led do a thriving black market economy which is damaging legitimate retailers all over the country; the actions or measures he is putting in place with other relevant Departments and agencies to tackle this illegal activity which is costing the Exchequer an estimated €500 million per annum. [20987/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners who are responsible for the collection of tobacco products tax and tackling the illicit trade in cigarettes and tobacco products that the information requested by the Deputy is as follows.

The point of display ban entered into force on 1st July 2009. Since that date the number and value of cigarettes seized is as shown on the attached table. These figures include one exceptional seizure of 120.3m cigarettes in October 2009.

There is no evidence to show that the display ban is having any effect on the market for illegal cigarettes. Prior to the ban, counterfeit and contraband cigarettes were rarely on open display at retail outlets. In fact, a thorough search of suspect premises was, and is, usually required in order to find illegal cigarettes.

The overall approach by the Revenue Commissioners is to tackle the problem of cigarette smuggling, using a combination of detection, seizure and prosecution. Revenue's approach involves an amalgamation of profiling, intelligence gathering, sharing of information with other agencies and Customs Services and also, where appropriate, using detection aids such as x-ray scanning technology to detect contraband.

Multi-agency operations involving Revenue and An Garda Síochána and also other Law Enforcement Agencies are mounted where appropriate. The estimated 120m cigarettes seized in the course of the well-publicised multi-agency Operation Samhna mounted in October 2009 is a good illustration of the successful execution of a multi-agency operation.

Revenue also works closely with the legitimate tobacco industry and the Office of Tobacco Control and uses information provided, in conjunction with other intelligence, to target retail outlets, markets and distribution centres to identify and seize illicit cigarettes that have evaded detection at the point of importation.

As the Deputy may be aware, I introduced provisions in the Finance Act 2010 significantly increasing the maximum fines that the Courts can apply to tobacco offences. If the value of the goods involved is €250,000 or less, the Court will be permitted to impose a fine not exceeding €126,970. If the value of the goods is greater than €250,000, the maximum fine will as at present be three times their value. These changes should ensure that the penalities for the offence of illegal importation of cigerettes will serve as a more effective deterrent to such activity.