Vol. 545 No. 5
85 Mr. McCormack asked the Minister for Health and Children when he expects to announce that cigarettes and tobacco will be excluded from the consumer price index, further to his recent statement in this regard. [30930/01]
The maintenance of a high level of prices for tobacco products is an important factor in preventing children from experimenting with tobacco. I support the removal of tobacco products from the consumer price index so as to ensure that price will continue to be used as a key public health instrument in the tobacco free initiative now under way.
The possible exclusion of tobacco products from the CPI has been raised with the social partners. Substantial increases in tobacco prices impact on the rate of inflation which is central to wage bargaining within the Programme for Prosperity and Fairness. I hope to gain acceptance from the social partners of a CPI without the inclusion of tobacco products prior to seeking agreement in this area at European level. The EU has a common interest in harmonised index of consumer prices and this is constructed from national CPIs.
