Jump to full article: Irish Times (ie), 2009-10-22
Author: PAMELA NEWENHAM
Intro: Ireland's policy of setting a minimum price on tobacco products distorts competition, a legal advisor to Europe's highest court has said.
In the case of Commission of the European Communities versus Ireland, the Advocate General said binding prices restricted manufacturers' freedom to set prices, thereby posing a risk to free competition.
The opinion of the Advocate General is not a final judgement, although the court generally follows it 80 per cent of the time.
. . .
In his legal assessment of the arguments the Advocate General said “increases in excise duties are therefore a less intrusive measure than minimum prices, which are thus not necessary”.
A statement issued by cigarette company John Player & Sons today said “while we don’t oppose the Commission’s view that tobacco manufacturers should have the freedom to determine retail prices for their products, the fact remains that the real minimum price for 20 cigarettes in Ireland is the street price of €4 - €5 euro due to widespread illegal cigarette selling.
This greatly incentivises criminals by giving them huge margins while denying Government badly needed revenues. 1 in 4 cigarettes smoked in Ireland today is not even bought in an Irish shop”.
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