Simon Harris (Wicklow, Fine Gael)
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Question 123: To ask the Minister for Finance if the study on comparing the detection rate of X-ray scanners with other countries as outlined in the Comptroller and Auditor General's 2009 report to improve the detection of illegal tobacco here has been completed; if he will make public the results of this study; and if he will make a statement on the matter. [12291/12]

Michael Noonan (Limerick City, Fine Gael)
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The 2009 Comptroller and Auditor General's Report on the Accounts of the Public Services, in addressing the issue of tobacco smuggling, suggested that, in order to assess the performance of the Revenue container scanners, a comparison of detection rates with those of other countries would be useful. Revenue commenced such a study in 2011. This study involves liaison with the relevant administrations of other Member States and with the European Commission's anti-fraud office, OLAF, in order to acquire relevant data that can be used as a reliable benchmark for comparison of scanner detection rates.

There are inherent difficulties in carrying out this study, which are delaying its completion. These include the relative scarcity of comparable statistical data that is available internationally on scanner detection rates and sensitivities of some jurisdictions associated with the publication of information in relation to enforcement techniques and methodologies. It is hoped that the study in question will be completed during 2012.

Revenue currently has two mobile X-ray container-scanning systems, one of which was acquired in 2007 and the second in 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 as required. Revenue deploys the scanners on a risk assessment basis at various locations throughout the country.

Simon Harris (Wicklow, Fine Gael)
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Question 124: To ask the Minister for Finance if the Revenue Commissioners have completed the recommended in-depth analysis of the effectiveness of available deterrents, prosecutions and sanctions regarding illegal tobacco production; if he will direct the Revenue Commissioners to release the results of their analysis; and if he will make a statement on the matter. [12292/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that they monitor the effectiveness of their programmes and strategies for counteracting the illicit tobacco trade on an ongoing basis. As part of this process the legislative penalties for excise evasion are regularly assessed in terms of their deterrent value. In this regard the Finance Act 2010 introduced significantly increased monetary penalties for tobacco offences. The penalty for conviction on indictment was increased from €12,695 to €126,950, or up to three times the duty paid value of the goods, whichever is the greater. The new penalties are applicable in respect of court convictions for offences occurring after the passing of that Act.

The Commissioners are satisfied that the new provisions are working effectively. In addition to monetary penalties imposed on conviction, in 2011 there were forty-five custodial sentences for tobacco tax offences, of which twenty-eight were suspended. Revenue initiatives to counteract the illicit tobacco trade include:

- the establishment of a high level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax evasion and to oversee and optimise the detection of contraband and counterfeit tobacco products,

- the adoption of a comprehensive tobacco strategy, which is underpinned by annual action plans. This 3-year (2011-2013) strategy, which is published on Revenue's website www.revenue.ie, includes a number of programmes, which are designed to complement each other in targeting the supply and demand sides of the market for contraband tobacco in Ireland,

- the commissioning of surveys in 2009, 2010 and 2011 by the Revenue Commissioners and the Office of Tobacco Control to establish smoking trends,

- the introduction of substantially increased legislative penalties in the Finance Act 2010 for the smuggling and sale of illicit tobacco products,

- further development of cooperation and intelligence sharing at organisational, national and international level,

- a commitment to prosecute all serious cases of tobacco tax evasion and a focus, in partnership with other Government agencies, on reducing the demand for contraband tobacco.