The European Commission has issued a further warning to the Government over its policy of setting a minimum price on tobacco products to protect public health.
It threatened yesterday to bring Ireland to the European Court
of Justice within two months if it did not amend legislation
setting minimum retail selling prices for cigarettes. "In the
commission's view, and
as consistently held by the Court of Justice of the European
Communities, minimum prices breach
community legislation and distort competition," it said.
Under an agreement reached with the Irish Tobacco Manufacturers' Advisory Committee, the Department of Health has set a minimum price for the sale of 20 cigarettes of about €1.30. The Government says the agreement was made for the primary purpose of preventing low-cost selling of tobacco products in Ireland.
By setting a minimum retail price for a packet of 20 cigarettes, it undermines the ability of retailers to provide special cutprice offers on certain brands. Price control is also seen as a way to protect children from becoming addicted to cigarettes and to encourage existing smokers to quit.
But the commission, in a statement, said it recommends increasing excise duties on cigarettes instead to reduce tobacco consumption. It issued a previous warning to the Government in December.
A spokeswoman for the commission said the Government had responded to that warning but "the reply was not satisfactory" and this was why the commission had issued a second warning or second "reasoned opinion".
Similar warnings were issued to Austria and Italy yesterday. "If these member states do not respond satisfactorily to the reasoned opinions within two months, the commission may refer the matters to the Court of Justice," the European Commission spokeswoman said.
The Government is understood to disagree fundamentally with the commission's view over the setting of minimum prices on tobacco products and is unlikely to respond positively to the warning.