Ireland: Half of Retail Outlets May Stop Selling Cigarettes

Source from:  Irish Examiner (ie)  10/31/2013

The claim has been made by the Convenience Stores and Newsagents Association, which said the tenfold budget-imposed increase — up from €50 a year — is impossible for businesses to meet.

Under plans detailed by the Department of Health a fortnight ago, the price shops pay for the right to sell all types of tobacco products is set to increase from €50 to up to €500 a year.

The move, which was first revealed by the Irish Examiner earlier this month, is part of the minister's ambitious attempt to stub out smoking in Ireland over the next 12 years.

It is understood the department believes the new policy — which equates to just under €10 a week for companies — is worth as much as €5m to the Government, with all of this fund being ring-fenced for cancer services.

However, CSNA chief executive Vincent Jennings said the figures mean nothing as a significant number of retailers will simply stop selling the "non-core" product rather than agree to pay the fee.

Speaking after an awareness meeting for shops, pubs and stores in Cork City yesterday, the senior sector official predicted that if the policy is implemented 5,500 of Ireland's 11,000 retailers will refuse to comply.

And while this may be seen by some health experts as a 'win-win' situation as it will mean less people can start smoking in the first place, Mr Jennings said the new rule is unfairly targeting already struggling firms.

"It has been two weeks to the day since the budget and the department has still not had the good manners to get in touch with us [retailers] about the practicalities of this change. We have been left totally in the dark. The simple fact is there will not be 11,000 stores who will pony up €500 a year for a non-core product, which is what tobacco is. There's not even going to be 6,000 because there is not a hope in hell businesses will stump up a three-digit number for this licence. They will decide not to sell tobacco products instead," he said.

Mr Jennings said shop, pub and store owners are particularly concerned about the new policy as, while the fee is currently capped at €500, there is no guarantee it will not increase further in the future.

He said businesses cannot pass on the extra cost to customers as this is outlawed. Enditem