Michael Healy-Rae (Kerry South, Independent)
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Question 32: To ask the Minister for Finance if he will consider having a consumer awareness campaign to inform consumers of the consequences of buying illegal cigarettes in that the people who are involved in this activity are also involved in prostitution rings and other forms of criminal activity. [14378/12]

Michael Healy-Rae (Kerry South, Independent)
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Question 33: To ask the Minister for Finance his views on the fact the average fine for smuggling tobacco into Ireland is €1,726, whereas if a shopkeeper inadvertently sells tobacco to a minor the fine is €3,000 and they will be debarred from selling tobacco for three months; and if he will make a statement on the matter. [14379/12]

Michael Healy-Rae (Kerry South, Independent)
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Question 34: To ask the Minister for Finance why, out of 57 convictions for the smuggling of cigarettes into this country, only six custodial sentences were imposed and 15 were suspended; and if he will introduce legislation which will ensure a statutory length of time, such as five years in prison, for the illegal smuggling of cigarettes into our country. [14380/12]

Michael Healy-Rae (Kerry South, Independent)
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Question 35: To ask the Minister for Finance why, out of 31 convictions for illegal selling of unstamped tobacco products, the average fine was €2,803, in view of the fact that if a shop owner inadvertently sells tobacco to an underage person they must pay a fine of €3,000 and will be debarred from selling cigarette for three months; his views on whether a larger, standardised fine for the illegal selling of unstamped tobacco products would be more sensible; and if he will make a statement on the matter. [14381/12]

Michael Healy-Rae (Kerry South, Independent)
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Question 38: To ask the Minister for Finance if his attention has been drawn to the fact that since he increased the cost of tobacco, persons selling illegal cigarettes on our streets have actually increased their costs from €4 to €4.50; his views that this makes a mockery of his policy of trying to price cigarette products out of existence; and if he will make a statement on the matter. [14383/12]

Michael Healy-Rae (Kerry South, Independent)
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Question 41: To ask the Minister for Finance his views on the fact that in the Ukraine 20 cigarettes cost €1.05, while in Ireland a pack of cigarettes is €9.10; his views on whether the policy of taxation on cigarettes does not stop persons from smoking cigarettes but encourages smuggling; in view of fact that half a billion euro is being lost in taxes and VAT every year, if he will consider reducing the cost of cigarettes; and if he will make a statement on the matter. [14507/12]

Michael Healy-Rae (Kerry South, Independent)
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Question 42: To ask the Minister for Finance his views on whether practical and sensible legislation should be introduced with regard to the illegal importation of tobacco products, and that this should be done so as not to exacerbate the illicit tobacco trade; and if he will make a statement on the matter. [14508/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 32 to 35, inclusive, and 38, 41 and 42 together.

I am informed by the Revenue Commissioners who are responsible for tackling the illicit trade in cigarettes and tobacco products that they attach a high priority to combating tobacco smuggling and have adopted a comprehensive strategy, underpinned by annual action plans, for this important work. 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. Key elements on this strategy include developing and sharing intelligence on a national, EU and international basis, development of analytics and detection technologies, and ensuring optimum deployment of resources at point of importation and within the country, in order to intercept the contraband product and to prosecute those involved.

One of the strategic actions in this strategy is to reduce the demand for contraband tobacco by educating the public on the negative aspects of contraband i.e. tax loss, criminality and increased health risks. Revenue optimizes media coverage for prosecutions, significant seizures and enforcement activities. Where large seizures are made, Revenue takes the opportunity to encourage members of the public to provide information to Revenue on the sale of illicit tobacco products.

I am informed that the penalties for the smuggling of tobacco products are contained in Section 119 of the Finance Act 2001 as amended and that the penalties for the illegal sale of unstamped tobacco products are contained in section 78 of the Finance Act 2005, as amended.

Where a conviction for an offence under section 119 of the Finance Act 2001 occurs following a summary prosecution, the fine that may be imposed is €5,000. A Court may also impose a term of imprisonment not exceeding 12 months, either instead of or in addition to the fine. For convictions following prosecution on indictment, the applicable fine is an amount not exceeding €126,970 or, where the value of the tobacco products concerned is greater than €250,000, not exceeding three times the value of the products. The Court may also impose a term of imprisonment not exceeding 5 years, as an alternative, or in addition, to the fine.

Where a conviction for an offence under section 78 of the Finance Act 2005 occurs a Court may, following a summary conviction, impose a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both. The penalty following conviction on indictment is a fine not exceeding €126,970 or imprisonment for a term not exceeding 5 years, or both a fine and imprisonment.

The specific 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% of the amount of the fine.

In relation to the sale of tobacco to an underage person, Section 5(2) of the Public Health (Tobacco) Act, 2002, provides that a person guilty of an offence under Section 45(1) shall be liable on summary conviction to a fine not exceeding €3,000, or to imprisonment for a term not exceeding 3 months, or to both. In proceedings for such an offence it shall be a defence for the person against whom such proceedings are brought to prove that:

- he or she made all reasonable efforts to satisfy himself or herself that the person to whom the alleged offence relates had at the time of the alleged commission of the offence attained the age of 18 years, or

- that the underage person produced to them an age card, for the time being in force.

In addition, following the Public Health (Tobacco) (Amendment) Act 2009, the Court shall, in addition to any fine or term of imprisonment imposed by the court in certain circumstances, order that the registration of the person shall cease to have effect:

- in the case of a summary conviction of the offence, for such period as is specified in the order not exceeding 3 months, or

- in the case of a conviction on indictment of the offence, for such period as is specified in the order not exceeding 12 months.

The specific penalties for shopkeepers selling tobacco to underage persons are a matter for the Department of Health.

In 2011, 103 convictions were secured by the Revenue Commissioners via the Courts for cigarette smuggling. Custodial sentences were imposed in 31 of these cases, 21 of which were suspended. The jail sentences ranged from 1 month to 12 months imprisonment. Community Service Orders were imposed in 8 cases totalling 590 hours.

Also in 2011, 57 convictions were secured by the Revenue Commissioners via the Courts for illegal selling of unstamped tobacco products. Custodial sentences were imposed in 14 of these cases, 7 of which were suspended. The jail sentences ranged from 4 months to 24 months imprisonment. Community Service Orders were imposed in 2 cases totalling 140 hours.

In relation to the Deputy's questions concerning the level of tobacco taxation, Ireland has the dearest cigarettes, and the highest cigarette taxation, in the EU. This reflects the long-standing commitment by successive Governments to using taxation as a central part of the overall strategy for discouraging smoking. The increase of 25 cent, inclusive of VAT, on a pack of cigarettes that was introduced in the last Budget is in line with that policy, and there are no proposals to reduce the tax.

The high price and tax levels make Ireland an attractive location for cigarette smugglers. I am informed by the Revenue Commissioners that surveys undertaken in 2009 and 2010 estimated that 20% of the cigarettes consumed in the State had not been taxed in this jurisdiction, and that this broke down between 14% illicit product and 6% legally imported by passengers arriving into the State. Based on the estimate of 14%, the loss of excise duty and VAT to the Exchequer from illicit cigarette consumption in 2011 would be in the region of €250 million. A further survey is currently underway.

With regard to the level of penalties for illicit importation and sale of tobacco products, the threat to tax revenues from criminal activity in the cigarette market is viewed very seriously, and substantially increased penalties were introduced in the Finance Act 2010 as a deterrent. The need for further changes will be kept under review, taking account, among other considerations, of practical experience of the operation of the increased fines.