Martin Heydon (Kildare South, Fine Gael)
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55. To ask the Minister for Finance his plans to introduce codentity in view of the increase in cigarette smuggling here; and if he will make a statement on the matter. [54720/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the introduction in Ireland of a system of the type indicated by the Deputy would be unlikely to assist in tackling the problem of cigarette smuggling in Ireland. As the Deputy notes, this is type of track and trace system which seems to be applicable to legitimate production and may be more relevant in countries where cigarettes are manufactured. The tax status of cigarettes in Ireland, regardless of where they are produced, is identifiable immediately by the presence or absence of the proper tax stamp on the packet. This system works very effectively in relation to legitimate supplies of cigarettes in Ireland. Cigarette smuggling is a global problem estimated to account for some 11% of consumption world-wide and it is not clear how the introduction of further controls in the domestic market alone would assist in tackling the illegal distribution of untaxed cigarettes smuggled from a variety of source countries.

The Deputy may wish to note that the World Health Organisation's (WHO) Protocol against the illicit trade in tobacco products, agreed in November 2012 and shortly to be signed by Ireland is designed to offer a global approach to tackling the illegal trade, through strict rules and controls on the supply and movement of tobacco products.

It stipulates that all those engaged in the tobacco supply chain must conduct due diligence on their customers. The aim is to ensure that sales reflect a real and legitimate demand, and to eliminate the creation of excess supply which could be used in the black market. It is further expected that a global tracking and tracing regime for all tobacco products will be set up within five years of the Protocol's implementation.

Luke Flanagan (Roscommon-South Leitrim, Independent)
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56. To ask the Minister for Finance the cost of all of the resources, salaries, vehicles, fuel, and ancillary costs of the Revenue Commissioners, used in the efforts to prevent, counter and fight the importation and sale of illegal cigarettes for the year 2012; and if he will make a statement on the matter. [54484/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that Revenue is an integrated Tax and Customs administration, and all Revenue staff are available for assignment to any required functions in accordance with currently identified priorities and risks. At the end of 2012 Revenue had approximately 2,000 staff engaged directly in activities that are dedicated to target and confront non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection. The related cost of salaries, overtime and other expenses for the year for these staff was approximately €108m. The Revenue Commissioners attach a high priority to dealing with this criminal activity." Revenue's Strategy on Combating the Illicit Tobacco Trade (2011-2013)", which is published on the Revenue website (www.revenue.ie), includes a range of measures designed to complement each other in targeting the supply and demand sides of the market for illicit tobacco products.

This multifaceted 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, use of analytics and detection technologies, and optimum deployment of resources at points of importation and inland to intercept and seize contraband products and to prosecute those involved.

Interception of illicit tobacco products at importation is achieved through a combination of risk analysis, profiling, intelligence and the screening of cargo, vehicles, baggage and postal packages. Revenue officers also target the 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.

In carrying out this important work Revenue works in close cooperation with other relevant agencies, both nationally and internationally. There is extensive cooperation in this jurisdiction between Revenue and An Garda Síochána and the agencies in the State and in Northern Ireland work closely together, through a cross-border group on tobacco enforcement, to combat the organised crime groups that are responsible for a large proportion of the illegal tobacco market. In addition, cooperation takes place with other Revenue administrations and with the European Anti-Fraud Office, OLAF, in the ongoing efforts to tackle the illicit trade in tobacco products at international level.