Jerry Buttimer (Cork South Central, Fine Gael)
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Question 108: To ask the Minister for Finance if he will act to enhance measures to tackle tobacco smuggling following the publication of new research for the Irish Heart Foundation titled Tobacco Taxation, Smuggling and Smoking in Ireland, which estimates that the investment of an additional €8 million in measures to reduce the illicit trade in tobacco has the potential to bring the State an extra €130 million in tobacco tax receipts per year; and if he will make a statement on the matter. [32923/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax and for tackling the illicit trade in cigarettes and tobacco products, that the tackling of this illicit trade is a high priority area. The strategy employed by Revenue to tackle this illicit trade is multifaceted. It 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 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 enforcement officers also target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. Revenue also carries out regular multi-agency operations, particularly in relation to large maritime importations and in checks at inland markets.

While enforcement staffing levels have generally remained static over the recent past, Revenue informs me that this aspect is continuously reviewed and staff numbers deployed at these locations are often augmented by additional personnel from other areas when specific operations are organised. Although Revenue's overall staff numbers have been reduced over the past two years in the context of Government policy on civil service numbers, Revenue has ensured that the resources deployed in this work have been maintained.

In terms of detection equipment investment, a second mobile X-ray container scanner, to augment the one first deployed in 2006, was commissioned by Revenue in January 2010 and is now fully operational. Container scanning is one of a number of detection technology applications used to detect contraband. Revenue also uses a tobacco detection dog in addition to the smaller baggage/ parcel scanners, which are deployed at all major ports, airports and postal depots. Two new X-ray scanners were also purchased within the last 12 months for use in postal depots.

I am also informed by the Revenue Commissioners that they continually review and update their strategy for tackling the illicit tobacco trade. Since July 2010, Revenue has initiated an ongoing series of nationwide tobacco 'blitz'-type operations, which concentrated additional Revenue resources at ports, airports and at various inland retail points, including markets, for the purpose of identifying illicit tobacco products. To date, Revenue has conducted eight tobacco blitz operations (three in 2010 and five in 2011) that have resulted in the seizure of in excess of 34m cigarettes. A further large-scale nationwide operation is scheduled to take place during the last quarter of 2011. In addition to this, there is a programme of Regional level blitz-type operations that target markets and other distribution points.

Revenue has established a high level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax and to oversee and optimise the detection of counterfeit and contraband tobacco products. This group has promoted a number of initiatives aimed at counteracting the illicit trade in tobacco. These include adoption of a comprehensive tobacco strategy and action plan.

In 2010 Revenue's strategy resulted in the seizure of a total of 178m cigarettes with a retail value of approximately €75m and 3,342kgs of tobacco with a retail value of approximately €1.2m. For the period January to October 2011, a total of 94.8m cigarettes with a retail value of approximately €40m and 10,003 kg of tobacco with a retail value of approximately €3.6m have been seized.

In the context of the above the Irish Heart Foundation Report has been noted.