image/svg+xml

Premium

Retail

Flawed Bill Will Create More Difficulties For Retailers

By Maev Martin
Flawed Bill Will Create More Difficulties For Retailers

Minister for Health Stephen Donnelly announced the passing of the Public Health (Tobacco) (Amendment) Bill 2024 by the Seanad on 7 November, completing its passage through both Houses of the Oireachtas.

Maev Martin talks to Vincent Jennings, CEO of the Convenience Stores and Newsagents Association, about the implication for retailers.

The Bill will increase the minimum legal age of the sale of tobacco products to 21 years of age.

The measure is being introduced in order to accelerate the decline in adult smoking prevalence, which has remained at 18% for several years, and to reduce smoking prevalence among children to zero.

On enactment, Ireland will become the first country in the EU to raise its age of sale to 21.

ADVERTISEMENT

“Ireland has long been a world leader in tackling smoking, beginning with the workplace smoking ban in 2004 and continuing with a range of measures including restrictions around the sale, advertising and packaging of smoking products to make them less attractive and less available to young people,” said Minister Donnelly.

“I look forward to seeing this measure enacted, to help our young people to avoid the lifetime of addiction and illness that tobacco smoking brings.”

Minister of State with responsibility for Public Health, Wellbeing and the National Drugs Strategy, Colm Burke said that the measure would “protect our young people from starting their adult lives with an addiction to a product that causes 76% of lung cancers here and kills half of those who use it.”

The Bill

The Bill will now proceed to the President for consideration and signature.

Upon being signed, the Act will take effect on 1 February 2028.

ADVERTISEMENT

This allows a transition period to ensure that individuals currently eligible to purchase tobacco products, specifically those aged between 18 and 21, are not impacted.

The Bill provides that current penalties for anyone convicted of selling tobacco products to people under the age of 18 will be extended to cover convictions relating to sales to people under the age of 21, including fines of up to €4,000 or six months’ imprisonment, or both, for a first offence.

Speaking in the Seanad during the passage of the Bill, Minister Donnelly acknowledged that once the Bill becomes law, retailers will be dealing with two separate age restrictions for alcohol and cigarettes.

“With regard to retailers, I accept that we will have two separate ages, namely, 18 and 21, just like we did when, as was previously the case, cigarettes could be sold to 16-year-olds at the same time the legal age to purchase alcohol was 18,” he said.

“For many years, retailers successfully dealt with those two age limits of 16 and 18.

ADVERTISEMENT

“I have full confidence that our retailers will be able to deal with separate age restrictions of 18 and 21.

“Colleagues will recall that the legal age for smoking was increased from 16 to 18 a few years ago, with the age for sale of alcohol remaining at 18.

“Our retailers have dealt with a similar situation previously. As Senator McDowell said, there is a three-year lead-in period.

“Do we need to engage on this? Of course we do. We need to listen very carefully to the retailers and do everything we can to make it work for them.

“As colleagues pointed out, it is the retailers who will be implementing the law every day in their shops.”

ADVERTISEMENT

Unintended Consequences

Flat lay composition with roller and tobacco on wooden table. Making hand rolled cigarettes

However, the CSNA’s Vincent Jennings believes that the Bill is flawed and will have to be amended.

“In February 2028, it will be illegal for someone under 21 to buy cigarettes but they haven’t addressed vaping or put additional restrictions on that and many people would argue that this is where many youngsters are entering into the nicotine inhaling world,” he says.

“I would be fearful that this 18 to 21 age increase will create more difficulties for retailers who are facing youngsters buying three or four items together – they will be told you can have all of these items but not the cigarettes.

“We are already seeing increased hostility and argumentative behaviour towards staff and this will make it worse.

“In addition, both Minister Donnelly and Minister Burke have refused to engage with the CSNA on this matter and we believe that our views should be heard.

“We aren’t trying to limit tobacco control measures, but the government needs to be cognisant of the unintended consequences of some of the measures it introduces.

“This measure will create a further barrier between the retailer and the customer.

“I understand that if you restrict tobacco sales to people 21 and over you are much less likely to have a 16 year old getting to them across the shop counter, but could that not also be done for other age restricted products such as alcohol?

“At what stage does the nanny state stop interfering with the genuine relationship between customers and retailers.

“The recent gaming bill that went through was explained as a public health initiative and it seems that you can’t question anything if someone says it is being done for public health reasons.

“We know that there are suggestions relating to obesity control and behavioural matters, something that the government is working on along with NGOs, but we have to ponder where all this will end up.”

Tobacco Allowance

On the subject of duty free tobacco, Jennings continues to voice his concerns about the revenue from tobacco sales that is lost to the State and to retailers as a result of the duty free tobacco allowance.

“The State allowing people to have a tobacco allowance or entitlement to bring in cheap tobacco runs contrary to what they themselves are looking for in our shops – that we sell tobacco at a high price to deter and dissuade smokers – so the government needs to be consistent,” he says.

“If the State is saying tobacco is bad for you but we will allow you to bring in cheaper tobacco than you have at home, that is hypocritical.

“This has been accepted as the norm for a long time but it isn’t normal for a product regarded as a carcinogen to be granted very substantial fiscal benefits.”

Jennings points out that there is a massive difference in the price of a pack of 200 cigarettes between the duty free and a shop.

“In the duty free, it is €58 to €60, but if you buy 200 cigarettes in a shop it is €180,” he says.

“According to the annual survey of illicit tobacco consumption, which is carried out by Ipsos MRBI on behalf of the Revenue Commissioners and the Office of Tobacco Control in the HSE, we (the State and Irish retailers) are losing 34% of tobacco sales.

“That is between smuggled cigarettes and those brought in from elsewhere.”

Jennings says that there hasn’t been any consideration given as to whether it is even appropriate for a Government to ‘reward’ or allow a citizen obtain tobacco as a ‘value proposition,’ available at a substantial discount.

“If the State removed the current allowance for duty free tobacco from entering the State and sought the agreement from all other EU Members to remove the right of freedom of movement of goods for tobacco products it would be sending a very clear and powerful signal as to the further de-normalisation of tobacco as a product that does not deserve any financial benefits accorded to it,” he says.

Public Health 

Jennings sees several advantages in the adoption of this approach to the regulation of tobacco sales throughout the EU.

“From the perspectives of public health, economic advantages, ethical considerations, consistency of policies relative to citizens wellbeing, and initiating behavioural change, such a move would be consistent with the stated aims of this government, the European Commission and the World Health Organisation to achieve a tobacco-free society,” he says.

“Eliminating duty free and duty paid allowances would likely lead to Irish smokers having to pay the higher domestic prices, which would, in turn, lead them to seek assistance in quitting far quicker than if they continued to have access to cheap ciggies.”

While there would be a spike in domestic sales, Jennings points out that this would lead to additional revenue for both the Irish Exchequer and licensed Irish tobacco retailers.

“Of course, I want to increase sales in Irish outlets, but what is wrong with that?” he says.

“If Irish citizens are going to buy cigarettes, it is better that the revenue from those cigarettes sales goes to Irish retailers and into this State’s coffers.

“Such additional revenues could (and should) be directed towards cessation services and other public health initiatives.”

Tobacco Tourism 

Many cigarette on table, closeup

Vincent Jennings maintains that duty free and duty paid allowances facilitates the tobacco industry “to sell harmful products at prices that ensure the continued addiction and enslavement of countless citizens.”

He believes that removing these allowances aligns with ethical business practices that prioritise public health.

“There is little doubt that there is substantial abuse of the allowance system, that people engage in ‘tobacco tourism’ and provide tobacco that was purchased abroad to friends, work colleagues and acquaintances at a much lower cost than the price of the products in Irish stores, yet still making enough of a margin to fund their own trip,” he says.

“Removing duty free and duty paid allowances contributes to the de-normalisation of tobacco use.

“It would send a powerful message that tobacco consumption is not endorsed by the State and that the State will not convey any style of advantage or financial benefit to those who wish to continue to smoke.

“Most smokers encounter health issues due to their habit.

“Isn’t it reasonable to suggest that the product they use should contribute to the Irish health system for their treatment, rather than contributing to EU and UK exchequers?”

Read More: Fyffes Sustainable Vision Bears Fruit

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.