I move:
That leave be granted to introduce a Bill entitled an Act to make it an offence to purchase illicit alcohol, illicit tobacco and illicit solid fuel; to make it an offence to purchase such goods from an unregistered or unlicensed retailer; to provide for the imposition of a penalty in respect of such offences; to provide for an on-the-spot fine in respect of such offences; and to provide for related matters.
Is mór an onóir domsa é mo chéad Bhille, an Bille um Dhíol Earraí Aindleatacha 2017, a chur ar aithne na Dála inniu. I thank Deputies Robert Troy and John Lahart and Retailers Against Smuggling for their input and help in preparing this legislation. The purpose of the Bill is to provide for the introduction of a series of new measures which are directed at tackling the trade in illegal alcohol, tobacco and solid fuel. One of the key measures proposed is to make it an offence for a person to buy illicit alcohol, tobacco or solid fuel. The Bill also makes it an offence for a person to buy alcohol, tobacco or solid fuel from an unregistered retailer. In addition, it introduces an on-the-spot fine of €100, which will be imposed where a person buys alcohol, tobacco or solid fuel which is illicit or from a retailer who is not registered or licensed.
Illicit trade in Ireland is estimated to have cost the Exchequer in excess of €2.4 billion in 2015. As I indicated, the Bill makes it an offence to purchase illicit alcohol, tobacco or solid fuel or to purchase alcohol, tobacco or solid fuel from an unregistered or unlicensed retailer. It provides for the imposition of a penalty and an on-the-spot fine in respect of such offences. A €100 fine would apply for the following amounts: up to one litre of spirits, and each additional litre or part thereof; up to 200 cigarettes, and each additional 200 cigarettes or part thereof; up to 150 g of rolling tobacco, and each additional 150 g or part thereof; and up to 10 kg of solid fuel, and each additional 10 kg or part thereof. The Bill contains 14 sections and is divided into five Parts, which I do not propose to discuss in detail at this stage.
Lower alcohol tax rates and excise duties in other jurisdictions fuel the smuggling of alcohol into Ireland. The production and distribution of counterfeit spirits is also common. A key driver for the illicit trade in tobacco products is the level of excise duty. Criminals are attracted to the high profitability of this market as taxation policies in Ireland have given rise to opportunities for illegal traders to make profits by not paying domestic rates of duty. From a demand perspective, increases in excise duties and taxes have driven up the final price of cigarette products, with the price of a pack of 20 cigarettes currently standing at almost €11. This has increased the demand for cheaper products supplied by the illicit market.
With regard to solid fuel, the introduction of the carbon tax in the Finance Act 2010 had the effect of increasing prices for fuel products throughout Ireland. This has given rise to a sharp increase in the growth of illicit trade in solid fuel products such as coal, peat briquettes and sod peat. Most of this activity involves cross-Border smuggling and the illegal import of solid fuel from Northern Ireland into the Republic of Ireland. The Bill provides a practical solution to the problem of trade in illicit goods.
Small shops are the lifeblood of local economies in towns and villages. In an increasingly homogenised world we need to preserve our small local businesses as their distinctive character is what makes each town and village unique. Locally owned businesses build strong communities and create more jobs in towns and villages. For this reason, we need to protect small shop owners and businesses by creating a deterrent to stop members of the public buying from illegal sources. The Bill makes it an offence to purchase such goods from an unregistered or unlicensed retailer and provides for the other offences I have outlined.
The effects of Brexit, including the significant weakening of sterling and concerns over possible customs and tariffs, will have a considerable knock-on impact on the level of illicit goods smuggled into Ireland. I recognise that Revenue officials and An Garda Síochána will need more resources to combat smuggling in the coming years because Brexit has created a political climate that is likely to make cross-Border smuggling more lucrative, with a fluctuating sterling and potential tariffs. The Bill ensures that a major gap in the legislation surrounding illicit trade is closed. We need to provide legislation in order that retailers and Revenue do not lose yet more money to criminals. Every time a product such as tobacco, alcohol and solid fuel is purchased from an illegal source, not a single cent goes to the State, while the criminals involved in illegal smuggling get richer and richer. I commend the Bill to the House.
