[Intl-tobacco] Ireland: Government not allowed to drop cigarettes from key index

[Robert Weissman]

Government not allowed to drop cigarettes from key index

by Senan Molony / Political  Correspondent
IRELAND/EUROPE;
Source: Irish Independent (ie), 2001-11-08THE Government will not
seek to exclude tobacco from the Consumer Price Index, despite
evidence that its inclusion is  artificially hiking the annual
inflation rate.

Health minister Micheal Martin, who has argued passionately for the
exclusion of cigarettes and related  products from the prices
survey, has been told that pan-European procedures at present make
it impossible.

A 50p increase in the price of a packet of 20 cigarettes in  the
last Budget has added half a percentage point to the  annualised
Irish inflation rate of close to 5.5pc.

Mr Martin believes tobacco no longer belongs in the basket of items
coming under regular price scrutiny for the  purposes of compiling
the index - a view which reportedly has the sympathy of the
Taoiseach.

But finance minister Charlie McCreevy has now firmly indicated that
Ireland cannot take unilateral action in expelling a product from a
range of items regularly monitored across Europe.

It would throw out the direct comparisons made across  member
states, collated by Eurostat and published in the  Eurobarometer.
Source figures from Eurostat are in turn used for decision making by
the European Commission and European Central Bank.

The question of making representations to Europe for a
community-wide exclusion has not been considered, Fianna  Fail
sources said last night.

Meanwhile the Government's new Tobacco Bill will get its second
reading in the Dail in the first week of December. It  is currently
in the Seanad.

The Bill bans the sale of packets of 10 cigarettes, outlaws all
in-shop display of tobacco products, and restricts access to
vending machines.

The legislation will control the sale and marketing of tobacco
products, stating that anyone who advertises  tobacco will be guilty
of an offence. It will also establish a  Tobacco Control Agency. Its
precursor has already warned, however, that enforcement of existing
restrictions is "non-existent" and that 81pc of teenage smokers can
easily  get cigarettes from local shops.

The new agency will have powers to force product disclosure from
tobacco manufacturers, and its inspectors will be able to check
premises where tobacco is sold. Ordinary retail outlets will only be
able to display a sign stating that tobacco products are sold.

Vending machines will meanwhile only work through the  purchase of a
token from behind the counter of bars and nightlife premises. Staff
will be expected to enforce age restrictions in their sale, and all
retailers will have to register with the agency.

The Bill will make it illegal to smoke in taxis and hackneys,
aircraft, trains, hospitals, schools and colleges, as well as State
offices, cinemas, theatres and other venues.

The Bill has been heavily criticised by Fine Gael for not  biting
the bullet on an outright ban on smoking in pubs.