Ireland: Smokers mayface health levy (fwd)

[Robert Weissman <rob@essential.org>]

Smokers mayface health levy
by Alison O'Connor, Health Correspondent
Date: Wednesday, 7/14/99

The Government is considering levying the tobacco industry and smokers to
fund a new strategy to reduce heart disease.

The Minister for Health, Mr Cowen, put the proposal to the last Cabinet
meeting, as a way of funding initiatives contained in a cardiovascular
health strategy document due next week.

Mr Cowen got Cabinet agreement for the proposals that heavy emphasis must
be put on a preventative strategy and behaviour changes, as well as more
resources for primary care. The document points to the Finnish experience,
where these and other measures have cut the rate of cardiovascular
disease.

Aware that these measures would require additional funding, it is
understood that Mr Cowen suggested that as well as Exchequer funding,
there should be a contribution from the tobacco industry, or a price
increase which would hit the consumer, or a combination of both.

As a rule, the Department of Finance does not allow money collected for
taxes to be earmarked for specific purposes. However, it is believed that
Mr Cowen has agreement in principle that changes can be made to increase
revenue which would go towards long-term prevention of cardiovascular
disease.

The Exchequer receives £700 million annually from tobacco taxes and
duties.  Department of Health sources say this figure "pales into
insignificance" when compared with the cost of treating people suffering
from smokingrelated illnesses.  Smoking causes 6,500 deaths in the State
yearly. The proposed levy on the industry was described as a variation of
the "polluter-pays" principle.

Mr Cowen is to set up a task force to implement the proposals in the
cardiovascular strategy document, which has been in preparation since
January last year.