Robert Dowds (Dublin Mid West, Labour)
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Question 124: To ask the Minister for Finance if he will consider imposing a significant minimum fine of €10,000 for tobacco smuggling on the basis that in the second quarter of 2011, the average fine imposed was only €1,600. [35911/11]

Michael Noonan (Limerick City, Fine Gael)
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The penalties for cigarette smuggling are laid down in section 119, as amended, of the Finance Act 2001. That provision sets out the various actions that constitute offences of evasion or attempted evasion of excise duty, as well as the penalties, by way of a fine or imprisonment, or both, that may be imposed for such offences. Where a conviction occurs following a summary prosecution, the fine that may be imposed is €5,000, and was last increased in 2008. For convictions following prosecution on indictment, the fine is an amount not exceeding €126,970 or, where the value of the excisable products concerned is greater than €250,000, not exceeding three times the value of the products. That fine was increased substantially by the Finance Act 2010. The 2010 Act also brought the penalty that applies where a case is dealt with under section 13 of the Criminal procedure Act 1967 into line with that for summary convictions.

The penalty to be imposed in any particular case is a matter for the Courts. Section 130(2) of the Finance Act 2001 permits a trial judge, in his or her discretion, to mitigate a fine incurred for an offence under excise law, provided that the amount so mitigated is not greater than 50 per cent of the amount of the fine. The need for further changes to the fines provisions will be kept under review, taking account, among other considerations, of experience of the operation of the increased fines provided for in the Finance Act 2010 as cases to which they apply come to Court.

Robert Dowds (Dublin Mid West, Labour)
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Question 125: To ask the Minister for Finance if Ireland will apply to the European Union Hercules Fund to help fund x-ray screening machines for detecting illegal tobacco imports in view of the fact that currently there are only two here; and if he will make a statement on the matter. [35912/11]

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 use of detection technologies, including x-ray container scanners and other 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 and optimum deployment of resources at points of importation and inland 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 consistently monitors ongoing developments in available x-ray and other technologies, and the selection and deployment of detection equipment is constantly reviewed. Revenue has made use of the European Union Hercules II Programme in the past to fund detection equipment and will apply for funding, when appropriate, in the future. The actual technology selected and the operational deployment of that technology is a matter for the Revenue Commissioners.

Under the present rules of the EU Hercules II Programme, Ireland would have to fund a minimum of 50% of the capital costs and 100% of the on-going operational costs of a new container scanner. 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 two mobile X-ray container scanning systems, the second of which was commissioned in January 2010. One scanner is based in Dublin Port and the other at Rosslare Ferry Port. However, both scanners are available for deployment at other ports etc. as required. Revenue deploys the scanners on a risk assessment basis at various locations throughout the country. In addition to the container scanners, Revenue also uses smaller static 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. Revenue also expects to procure a smaller mobile Scan Van in 2012 and has submitted an application for co-funding for this to the European Union Hercules II programme.