I propose to take Questions Nos. 171 and 172 together.
I am advised by Revenue that combatting the illegal tobacco trade has been, and continues to be, a priority for them. Their actions against this form of criminal activity include a range of measures to identify and target those involved in the smuggling, supply or sale of illicit products, with a view to disrupting the supply chain, seizing the illicit products and, wherever possible, prosecuting the persons involved.
A combination of risk analysis, profiling and intelligence, and the risk-based screening of cargo, vehicles, baggage and postal packets is used to intercept illicit products when they enter the State. Action after importation includes checks at retail outlets, markets and private and commercial premises.
Revenue and An Garda Síochána work together on an ongoing basis in acting against tobacco crime, and both organisations cooperate closely with their Northern Ireland counterparts, in the framework of the North-South Joint Agency Task Force, to target the organised crime groups that are responsible for a large proportion of this form of criminality. In addition, Revenue works closely with the relevant authorities in other jurisdictions, the European Anti-Fraud Office, Europol and other international organisations, including the World Customs Organisation, in the ongoing programmes of action at international level to combat tobacco crime.
Revenue’s extensive programme of work against the illegal tobacco trade has achieved a considerable level of success. In the period from 2013 to 2017 some 240 million cigarettes and 20,000 kilograms of tobacco were seized. In March of this year, a joint operation with An Garda Síochána led to the closing down of a major illegal cigarette factory at Jenkinstown, Co. Louth. Over 23 million illicit cigarettes and 71 tonnes of tobacco were seized at this facility.
Estimating the extent of any illegal activity is inherently problematic, but the annual surveys carried out by Ipsos MRBI for Revenue and the Health Services Executive provide an indication of the trend in the incidence of illegal tobacco products. The 2017 survey found that 13% of the cigarette packs encountered during the project were illicit. While this is higher than in 2016 (10%), it is nevertheless lower than the levels of 15-16% recorded in the earlier years of the survey, in the period from 2009-2011.
Revenue seeks to prosecute in any case where a person can be connected with the trade in illegal tobacco products or can be shown to be otherwise involved in criminal behaviour related to that trade. In 2017, there were 26 summary convictions connected with the smuggling of illegal tobacco products, as well as 53 relating to offences such as holding or selling them. In addition, 9 persons were convicted on indictment in respect of such offences. I understand also that there has been a conviction arising from the discovery of the illegal cigarette factory in Co. Louth in March, where the person concerned was sentenced to 12 months imprisonment, and that further cases related to this detection are before the Courts.
I am advised also that Revenue keeps its programmes of action against fiscal fraud under ongoing review, to ensure that available resources are utilised to best effect in tackling these threats to legitimate businesses and the Exchequer, and that they act to augment these resources where necessary. In 2017 a new mobile x-ray scanner was purchased and deployed at Dublin Port to support the work of detecting and seizing illegal products.
I am satisfied that Revenue’s work against the illegal tobacco trade continues to achieve considerable success. Revenue is, however, aware of the need for constant vigilance and to be ready to respond to any new developments or threats in this area, and action against this criminality will remain a priority for them.
