Please Ignore Smokers, Pleads Finance Minister
(12/12/06)

Irish Finance Minister, Brian Cowen imposed a massive 50c price hike on 20 packs of cigarettes in his recent budget for 2006. He then pleaded with Trade Unions and to those involved in negotiating pay increases to ignore the extra cost of living involved for smokers.

Last week, Finance Minister Brian Cowen presented his budget for 2006 and smokers in the Republic of Ireland were hammered with a 50c hike in the price of 20 cigarettes. The increase which is way above the annual inflation rate now puts cigarettes purchased in Ireland above €7 for a pack of twenty. The price increase will add to the annual inflation rate which is used when calculating wage increases under the national wage agreement. However, the minister pleaded with Trade Unions to ignore the increase in the cost of living for smokers when negotiating with employers in future.

Tobacco and alcohol are included in the Consumer Price Index (CPI) which is used when calculating inflation. The 50c increase on cigarettes which is considerably above the current inflation rate will add to the annual level of increase. The Minister who brought about this extra cost of living to smokers is anxious it gets overlooked in inflation figures and that during wage negotiations smokers are effectively ignored and sidelined.

Prof. Clancy of ASH goes one step further and demands that the government now removes tobacco completely from the Consumer Price Index and states "The CPI issue, which is a concern for the government can be dealt with by taking tobacco out of the basket of products used to measure the CPI." ASH frustrated smokers continue to ignore multi million pound add campaigns, warnings on cigarette packs and draconian smoke bans has now embarked on a campaign to punish smokers with price increases. They now claim "price is the best way of achieving a smoke free society"

The budget increase of 50c fell far below the €2 increase ASH had demanded. It also has to be borne in mind that the Finance Minister imposed no increases on tobacco in his previous two budgets. However, as always it will be the elderly, low paid, unemployed and less well off in our society who will feel the 50c price increase the most. Just where do the marginalised in society fit in if the Minister for Finance is calling for increases in living costs for the relatively high earning smokers of the Celtic Tiger to be ignored ?