Ash 'extremely concerned' by EU ruling

Anti-smoking lobby Ash Ireland said today it is “extremely concerned” by European Court of Justice ruling on Irish tobacco prices and said it would be seeking an urgent meeting with the Government.

“We will be in contact with the government on this vitally important matter. Ireland has and is permitted to have a separate tax regime to all other EU countries,” said Dr Angie Brown said. “It is our view that the Government has every right to apply taxes which ensures that tobacco is sold at current and even higher price.”

Dr Brown said price has been well-established as the most important measure in encouraging smokers to quit and discouraging young people from starting to smoke. “We must always bear this in mind when legislating on tobacco price,” she said.

The Irish Cancer Society also expressed disappointment at the ruling, saying it could lead to tobacco prices falling.

ICS head of advocacy Kathleen O'Meara urged the Government to raise taxes on tobacco products and to bring in legislation immediately to prohibit tobacco manufacturers from selling tobacco products at a loss.

‘It is also now vitally important that the Government take measures to combat the very serious problem of tobacco smuggling which accounts for 20 per cent of all cigarettes smoked in Ireland in order to ensure that high price policy is effective in reducing consumption," she added.

However, tobacco companies welcomed the decision. "The reality is the set minimum price for cigarettes has become irrelevant," PJ Carroll spokesman Toby Granwal said. "Packs of cigarettes are being purchased up and down the country for as little as €3.50 on the black market. This is under half the current minimum price of €7.75.

"We agree with the position asserted by the European Commission and confirmed by the European Court of Justice that the practice of setting minimum prices for cigarettes is illegal in the context of EU rules and distorts competition."

John Player said the ruling will have "no impact" on people who buy cut-price illegal cigarettes on the streets of Ireland.

Fine Gael’s justice spokesman Charlie Flanagan said the increasing levels of tobacco smuggling in Ireland were undermining the Government’s efforts to reduce smoking. He called for more resources to combat the illicit trade.

“The ramification of the growing smuggled cigarette market is that criminal gangs, including dissident republicans, are making vast amounts of money out of the trade,” Mr Flanagan said.

Labour’s health spokeswoman Jan O’Sullivan claimed the ruling was “law gone mad” and said prices could fall immediately. “Competition law is all well and good, but when it starts to get in the way of reasonable measures, which are put in place in the greater public interest, it is clear that something has gone wrong,” the TD said.