Written answers

Wednesday, 5 October 2011

Department of Finance

Illicit Trade in Tobacco Products

9:00 pm

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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Question 55: To ask the Minister for Finance if he will consider the purchase of an additional scanner, with the assistance of EU funding, for use in our ports to assist in the efforts to reduce cigarette smuggling; and if he will make a statement on the matter. [27731/11]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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Question 67: To ask the Minister for Finance if the Customs Service has an adequate number of scanning machines; the location of these machines; if they are mobile; if it is intended to purchase additional machines; if there are EU sources of funding available for such machinery; and if he will make a statement on the matter. [27811/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 55 and 67 together.

I am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax, that the use of detection technologies, including scanning machines, is just one part of a multi-faceted strategy employed by Revenue to tackle the illicit trade in tobacco products. This strategy includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, ongoing review of operational policies, development of analytics and deployment of detection technologies, optimum deployment of resources at point of importation and internally to intercept the contraband product and to prosecute those involved.

Interception at the point of importation is achieved through a combination of risk analysis, profiling, intelligence, and the screening of cargo, vehicles, baggage and postal packages.

Revenue maintains an up-to-date knowledge of all currently available technology, and the selection and deployment of detection technologies is constantly reviewed. Revenue has made use of the EU Hercule 11 Programme in the past to fund detection technology and will consider applying for funding, as appropriate in the future. The actual technology selected and the deployment of that technology is a matter for the Revenue Commissioners.

Under the present rules of the Hercule 11 Programme, Ireland would have to fund a minimum of 50% of the capital costs and 100% of the on-going operational costs. The capital cost of a new mobile X-ray container scanner is in the region of €3 million with annual running costs of approximately €320,000.

Revenue currently has 2 mobile X-ray container scanning systems. One is based in Dublin Port, while the second is located at Rosslare Ferry Port, but both scanners are available for deployment at other ports as required. Revenue intends to maintain and increase the frequency and variety of scanner deployments at various locations throughout the country.

In addition to the container scanners, smaller static baggage/parcel scanners are deployed at all major ports, airports and postal depots.

Revenue seized a total of 178.3 million cigarettes with a retail value of approximately €75.3 million in the course of 2010. In addition, during the period January 2011 to date, a total of a total of 92 million cigarettes with a retail value of approximately €38.7 million were seized.

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