THE GOVERNMENT was urged by Fine Gael TD Phil Hogan to tackle coal smuggling.

“There is evidence of a significant increase in the amount of coal being smuggled into this jurisdiction from Scotland and elsewhere,’’ said Mr Hogan.

“Perhaps this matter might be addressed by the tax and excise provisions, particularly as they related to carbon tax, that will be contained in the budget.’’

Mr Hogan said that the southwest coast was extremely vulnerable to drug smuggling. Ships were able to drop large quantities of illegal material some miles off the coast, he said. He added that it was not easy to police it.

“Some fishermen who used to provide intelligence to the authorities are not as co-operative as previously because they were adversely affected by legislation introduced in recent times,” Mr Hogan said. He suggested an agreement between the EU and the United States to share information to tackle smuggling.

“Such an agreement would allow the EU to co-operate more fully with other continents to ensure that the exchequer and businesses do not operate at a disadvantage as contraband cigarettes and other products are placed on the market at very low prices, leading to huge losses to the exchequer and businesses,’’ he added. Mr Hogan was speaking during a debate on the EU council framework decision on the use of information technology for customs purposes. Minister of State for Finance Dr Martin Mansergh said that the customs information system (CIS) was a computerised network database.

It was used by customs services in EU member states to co-operate with each other in combating smuggling and fraud. Dr Mansergh said the success of the co-operation and shared intelligence could be demonstrated by the fact that seizure of cigarettes and “roll your own’’ tobacco more than doubled in value since 2007.

Some 74.5 million cigarettes were seized in 2007 and 135 million last year, said Dr Mansergh.

In addition, he added, the Customs seized more than 1,5000kg of “roll your own’’ tobacco in the same period. Between January and October of this year, more than 200 million cigarettes had been seized with a retail value of about €80.5 million, including the seizure of some 120 million cigarettes at Greenore port last month with a value of €50 million.

Dr Mansergh said alcohol seizures increased from 139 in 2007 to 282 last year, involving more than 22,800 litres of beer, wine and spirits in the first year and more than 83,000 in the second.

Cash seizures, representing the proceeds of crime, amounted to €3.5 million in 2008, seven times more than the previous year.

“Most of the large seizures were made as a result of intelligence,’’ said Dr Mansergh.

Labour’s Joan Burton said cigarette smuggling cost the State an estimated €500 million annually.

“The capacity of smuggled cigarettes to damage an individual’s health even more than ordinary cigarettes, properly manufactured and vouched . . . was very considerable,’’ she added.

Ms Burton said being brought before the courts and fined or imprisoned was part of the risk involved, but an average fine of €500 was “seriously laughable’’.