Sales of cigarettes in pubs may be down by 60 per cent

Sales of cigarettes in pubs have dropped dramatically since the introduction of the smoking ban, according to latest figures compiled by vending machine operators.

However, while the vending firms say sales have fallen by between 50 and 60 per cent, newsagents around the country have reported a much smaller decline in sales.

It is still unclear what impact the decrease in sales will have on Exchequer figures, although the Department of Finance has estimated that smoking overall will fall this year by 6 per cent, which amounts to €66 million in excise receipts.

Major tobacco manufacturers, such as Gallahers, John Player and Sons and PJ Carroll and Co, said yesterday it was still too early to determine the full impact of the tobacco ban on cigarette sales.

The operators of vending machines, which up until now accounted for around one-fifth of tobacco sales, say as many as 250 jobs are at risk in the coming weeks if low sales continue.

"By the end of this month, we will all have to start letting people go," said Mr Gerry Lawlor, spokesman for the Irish Cigarette Machine Operators' Association (ICMOA). "People are under severe pressure, particularly in Dublin."

Mr Val Murphy, a Cork-based vending machine owner, said that he had already laid off one of his staff.

Mr Pat McKeown, chief executive of the Irish Retail Newsagents' Association, said there was "anecdotal" evidence from members around the country of a decrease in sales, although less dramatic than in pubs.

Mr Eanna Ó Briain, of Keogh's News, Sutton Cross, Dublin, said initial figures showed sales had dropped in the region of just 1 or 2 per cent.

Privately, tobacco firms says they are less worried about the effects of the smoking ban on sales and are more concerned over plans to further restrict the display of cigarettes in shops under new legislation.

Pharmacies, meanwhile, say sales of nicotine replacement products, such as nicotine patches, have increased by around 15 per cent.

"It's been a wonderful opportunity for people to give up cigarettes," said Mr Richard Collis, a pharmacist and president of the Irish Pharmaceutical Union.

"The biggest barrier for many smokers was going to the pub. Most people tended to relapse when they were in the pub on a Saturday night. Now they don't have to worry about that."

Dr Luke Clancy, a consultant respiratory physician and chairman of the anti-smoking group ASH, said he was not surprised at the initial drop in sales.

"Many people are using the ban as an opportunity to either give up or reduce their levels of smoking."