Lenihan should cut Big Tobacco down to size

IN the ongoing debate as to how best fix the hole in our public finances in the budget, little attention has been given to increasing excise duties, especially those relating to tobacco.

Substantial price increases on tobacco products, such as 50 cent on a packet of 20 cigarettes, leads to a win-win situation. Tobacco use goes down and revenue goes up, with significant health gains for the population.

Year on year the tobacco industry argues against price rises for fear that it may exacerbate smuggling and that it would be unfair on their customers. Strange how the tobacco industry never comments on how unfair it is on their customers that half of them will die before their time as a result of their addiction to the industry’s products.

However, despite their rhetoric on price, once the budget has passed they increase the price of tobacco products so as to maintain their profits from smokers’ addiction.

Since Budget 2000, the Government has increased tobacco prices by €2.43 on a packet of 20 and the tobacco industry has increased the price further by €1.35. Tobacco industry price increases are a lost opportunity to expand tax revenues from tobacco products. It is well past time we placed a cap on the price that the tobacco industry can charge for its deadly products so as to minimise their huge profits. In doing so, we could ensure the excess profits that the industry makes are transferred to state revenues which could be much better utilised to enhance our health services rather than shareholders of this discredited industry.

Since everything is “on the table” for the budget, the time is opportune for the finance minister to tackle our tobacco epidemic and the excess profits made by the tobacco industry.

Dr Fenton Howell

Faculty of Public Health Medicine

Royal College of Physicians of Ireland

South Frederick Street

Dublin 2