Government’s answer is insult to victims of crime

FINANCE Minister Charlie McCreevy’s tax increases on cigarettes and alcopops were criticised last night for not going far enough.

Adding 35c to the cost of ready-mixed spirit-based alcopops will do nothing to tackle alcohol abuse and under-age drinking, said the Fine Gael justice spokesman, John Deasy.

Putting just 50c on a packet of 20 cigarettes was a paltry increase, according to anti-smoking lobby group, ASH Ireland.

Publicans’ representatives expressed outrage at the minister's decision to increase excise duties on spirits.

Cigarette manufacturers said the 50c price increase will make Ireland an attractive target for tobacco smugglers.

The price of alcopops like Smirnoff Ice and Bacardi Breezer should be doubled altogether as they are targeting young people, Deputy Deasy said. The budget’s action on alcopops was also not an alternative to the failure to hire 2,000 extra gardaí, he said.

“This increase will have absolutely no effect. If that’s the Government’s answer to alcohol abuse and street violence, it is an insult to the victims of crime,” Deputy Deasy said.

ASH administrator Valerie Coghlan said that the organisation was extremely disappointed as they were looking for a 2 increase and were expecting the price to go up by at least 1. Compared with increases in previous years, 50c was actually lower, she said.

The Government should have recognised that the price of cigarettes needed to be increased dramatically to have an impact on smokers, Ms Coghlan said.

The Vintners Federation of Ireland said that the increase in taxation was a regressive measure cementing the country’s position as one of the most expensive countries in Europe to visit. Furthermore, alcohol as spirits were already heavily taxed.

VFI president Joe Browne said increasing excise duty would result in a rise in inflation and decrease competitiveness.

“The minister's decision today to increase excise duty will only serve to make Ireland even more expensive again,” he said.

Cigarette manufacturers Gallaher’s said the higher the taxes, the greater the incentive for criminals to be involved in tobacco smuggling.

“When smokers start buying these products, two things will happen: the exchequer will lose out financially and the tobacco industry will face a downturn with a consequent loss of employment,” a company spokesman said.

John Player & Sons said it was disappointed at the Government’s decision to increase tobacco tax by more than double the rate of inflation.

John Player & Sons managing director Liam Peters said that, apart from putting a completely unfair tax burden on smokers, a duty increase of more than double the rate of inflation flies in the face of logic and economic experience.

“All the evidence from Britain and elsewhere shows that excessively high tax encourages smuggling as well as legal cross-border trading in cheap cigarettes,” he said.