Michael McGrath (Cork South Central, Fianna Fail)
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Question 111: To ask the Minister for Finance if he is satisfied that the Revenue Commissioners have sufficient resources to combat tobacco smuggling; the progress made to date in tackling the problem; and if he will make a statement on the matter. [36485/12]

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 key objective. The Revenue Commissioners are subject to the Employment Control Framework staffing reductions in line with Government targets to reduce public service numbers. However, I recognise the need to replace the loss of key skills and experience in Revenue while meeting the existing Employment Control Framework allocations. In that context, I have asked the Minister for Public Expenditure and Reform to consider reducing Revenue's target staff numbers over a longer time period, whilst at the same time allowing Revenue to replace critical skills and experience.

In 2010 Revenue established 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. This group has promoted a number of initiatives aimed at counteracting the illicit trade in tobacco. These include 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, 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.

In 2011 a total of six national tobacco blitzes were carried out resulting in the seizure of more than 19m cigarettes and 1,345 Kgs of Tobacco. A total of €30,000 in cash and 49 vehicles used as conveyances were also seized. Six arrests were made and 103 cases have been identified as possible prosecution cases. To date in 2012 two national tobacco blitzes have been held resulting in the seizure of 1.3m cigarettes and 654 kgs tobacco. Two people were arrested and 12 vehicles used as conveyances were also seized. Twenty-nine cases have been identified as possible prosecution cases.

In 2011, a total of 109.08m cigarettes with a retail value of €45.95m and 11,158 kgs of tobacco with a retail value of €4m were seized by Revenue. In addition to this Revenue has obtained one hundred and one convictions relating to cigarette smuggling, with fines of €136,300 imposed, and thirty custodial sentences of which twenty were suspended. There were a further fifty-seven convictions relating to the sale of unstamped tobacco products with fines of €115,850 imposed, and thirteen custodial sentences of which seven were suspended.

In 2012 to date a total of 66.1m cigarettes with a retail value of €29.9m and 2,555 kgs of tobacco with a retail value of €0.94m have been seized by Revenue. In addition to this Revenue has obtained thirty-three convictions relating to cigarette smuggling, with fines of €56,250 imposed, and thirteen custodial sentences of which four were suspended. There were a further forty-six convictions relating to the sale of unstamped tobacco products with fines of €84,200 imposed, and ten custodial sentences of which seven were suspended.