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  • Sale of Illicit Goods Bill 2017 To Be Debated in The Dáil Today

    Retailers Against Smuggling (RAS) has welcomed a debate due to take place in the Dáil this evening (17.20) on Fianna Fáil’s Private Members Bill the Sale of Illicit Goods Bill 2017. The Bill, which was introduced by Fianna Fáil TD for Louth/Meath East Declan Breathnach aims to create a deterrent to purchasing smuggled goods like cigarettes, alcohol and solid fuel which undercut Irish retailers. The Bill makes it an offence to purchase such goods from an unregistered or unlicenced retailer, provides for the imposition of a penalty in respect of such offences and provides for an on-the-spot fine in respect of such offences.

     

    The Bill is a significant step in combatting smuggling into Ireland which is a growing problem. Revenue’s Tobacco Survey 2017[1] revealed that 13% of all packs of cigarettes held in Ireland are illegal – this amounts to approximately 520 million cigarettes consumed. This represents a loss to the Exchequer of €229 million in 2017 alone. Revenue’s 2017 annual report showed that it also seized 95,021 litres of illicit alcohol with an estimated value of €0.91 million.

     

    RAS spokesman, Benny Gilsenan said “The issue of smuggling has grown more apparent than ever in 2018 so the timing of this Bill is significant. We saw the discovery of a massive cigarette factory in Louth this year, as well as two fuel laundering plants. With the recent tobacco excise increase in Budget 2019 and the smoky coal ban due to be implemented next year as well as a potential hike in carbon tax, the likelihood of an increase in tobacco and fuel smuggling over the border is extremely high.”

     

    Mr Gilsenan continued “This Bill will help protect small retailers by deterring the purchase of illicit goods. This goes some way to closing the gaping holes in Irish legislation that have existed until now and we hope that all members of Dáil Eireann will support it to protect our small and medium retail sector.”

     

    While RAS welcome the legislation, we also recognise that Revenue officials and An Garda Síochána need more resources to combat smuggling in the coming years.

     

    “Brexit has created a political atmosphere that will likely make cross-border smuggling more lucrative, with a fluctuating sterling and potential tariffs. The Bill ensures that a major gap in the legislation surrounding the illicit trade is closed – the next steps are to ensure that retailers and Revenue do not lose out on yet more money to criminals,” Gilsenan continued.

  • Budget 2019 – Disappointment again as Government fail to protect Irish Retailers

    Retailers are angry at the Government’s decision to impose yet another excise increase of 50c on tobacco, bringing the total cost of an average packet of cigarettes to €12.70. The move comes despite the Tax Strategy Group clearly stating in July that an increase in excise on tobacco would not generate any additional revenue, given the resultant levels of smuggling and money lost to the Exchequer. Revenue’s 2017 Tobacco Survey showed that the total amount of illegal cigarettes smoked in Ireland rose to 13%.

    Retailers Against Smuggling (RAS) is in no doubt that these excise increases, which make Ireland the most expensive place in the EU to buy cigarettes, only serve to further incentivise smuggling and undermine Irish retailers.

    RAS’s pre-budget submission had called for a freeze on further excise increases until the Government can gain control over the growth of the black market in Ireland, particularly with the looming uncertainty of Brexit.

    RAS spokesperson Benny Gilsenan: “Today’s decision is another slap in the face to retailers that have been compliant with every decision made by this Government. We want more resources to be given to Revenue to protect businesses from illicit trade in tobacco, alcohol and solid fuel.”

    Mr Gilsenan continued “This year we have seen the discovery an illegal cigarette factory on Irish soil for the first time, and only this weekend we saw the discovery of two separate oil laundering operations and it’s significant that these plants were found near the border. The increase further widens the gap between legitimate shop-owners that are earning an honest living, and gangs peddling €5 cigarette packets in our communities. What’s more, this is little more than a stealth tax on our law-abiding customers, who choose to buy legitimate product rather than smuggled product from the street.”

    RAS’ budget submission called for not only a halt on excise increases, but also for more resources for Revenue; the registration of all solid fuel retailers and parliamentary support for the Sale of Illicit Goods Bill which is designed to address smuggling. If the Government is truly committed to helping retailers, these suggestions from our industry must be taken seriously.

    Mr Gilsenan continued “Our budget submission laid out measures that would protect Irish retailers, but the Government has completely ignored us yet again. If 2017 is anything to go by, we will continue to see the consequences of this into next year. The illegal tobacco trade cost Ireland €1.76 billion between 2010 and 2017. That’s enough to build 8,400 social housing units in Dublin but instead the money went into the hands of criminal gangs.”

    -ENDS-

    For Further Information
    Email: info@retailersagainstsmuggling.ie

    ***RAS SPOKESPERSON BENNY GILSENAN WILL BE AVAILABLE FOR COMMENT IN BUSWELLS TODAY FROM 12.30***

  • Retailers Against Smuggling attend Leinster House briefing to raise awareness of the growing concern surrounding smuggling in Ireland

    Wednesday 4 July, Dublin

    On Wednesday, 4 July, Retailers Against Smuggling (RAS) attended a Leinster House briefing hosted by Fianna Fáil Deputy Declan Breathnach to raise awareness of the growing concern surrounding smuggling in Ireland.

    Following the success of our ‘Brexit, the Border and the Black Market’ roundtable in Belfast on 15 June, Deputy Breathnach invited RAS into Leinster House to speak about how illicit trade is negatively impacting Irish Retailers and our local communities.

    RAS believe that until measures are taken to effectively tackle smuggling to protect small businesses, there should be no further increase in excise. We have witnessed a growth in Non-Irish duty paid which is a major concern to retailers, from 17% in 2013 to 20% in 2017 and due to the year-on-year increases in excise, this is likely to grow even further. Further hikes will lead to greater price differentials between legitimate, legal, duty-paid products and illicit, non-duty-paid products. We are calling for a moratorium on further excise increases until they can be proven not to lead to a surge in smuggling.

    RAS spokesperson, Benny Gilsenan, said: “We want to give a voice to the shopkeepers around the country that are having their business undermined by smuggled tobacco, alcohol and solid fuel. Retailers face an uncertain future with Brexit looming, so the Government needs to totally reconsider its policy of year-on-year excise increases, which clearly helping fuel the illicit trade and to provide more resources to Revenue to stop the flow of illicit goods into Ireland and our local communities. We’re grateful for the opportunity today to speak at Deputy Breathnach’s briefing today and help raise awareness of this growing issue for small retailers.”

  • Border retailers 70% more concerned about impact Brexit will have on smuggling and the border, compared to last year’s annual survey

    14 June 2018, Dublin

    Retailers Against Smuggling (RAS) are launching their second annual survey at the second high-level roundtable discussion in Belfast to tackle Brexit, the Border and the Black Market. Members of the Irish Government, An Garda Síochána, the PSNI and HMRC will meet to discuss the issues that retailers on both sides of the border will face in the coming months and years.

    The cross-border survey conducted by RAS has revealed that since last year border retailers in both Ireland and Northern Ireland are almost 70% more concerned about the impact Brexit will have on smuggling and the sale of illicit goods in their communities. Responses from retailers in the counties of Donegal, Cavan, Monaghan, Sligo and Louth were recorded, along with retailers across Northern Ireland. The survey results demonstrate the fact that the growing issue of smuggling over the border must remain a priority during all Brexit negotiations.

    The survey found that 3/5 retailers in Northern Ireland have noticed an increase in the trade of smuggled products in the past year, while 90% of border retailers in Ireland believe the trade of smuggled products impacts their profits by 5-10%. 43% of retailers on the North side of the border estimate this same impact to be 10-20% of their turnover.

    RAS spokesperson and Dublin based retailer Benny Gilsenan said “It’s not just the loss of revenue from missing out on the sale of a packet of cigarettes or bottle of wine. Retailers find that when a customer doesn’t buy these in their shop, they’re not buying their pint of milk, they’re not buying their sliced pan with us either. It has a huge knock on effect on small businesses, and this is seen on both sides of the border.”

    CEO of Retail Excellence Ireland Lorraine Higgins said “Greater consideration needs to be given to the challenges retailers are facing, and how Brexit will only exacerbate those difficulties. Rising excise tax has proven to be an ineffective way of dealing with the problem, we need to see the Sale of Illicit Goods Bill introduced so that progress can finally be made.”

    CEO of Retail NI Glyn Roberts said “It has become strikingly clear that more resources need to be made available to tackling the issue of smuggling in Ireland. Government needs to listen to retailers and provide the necessary supports.”

    A key driving force for the illicit trading of tobacco and alcohol is the continuously increasing level of excise duty on products.

    The survey also revealed a shocking lack of trust in the resources made available to the authorities by Government with only 1/5 retailers of the belief that the PSNI and An Garda Síochána have the resources they need to deal with smuggling and illicit trade in their area both north and south of the border. Only 1/5 border retailers believe that the authorities have adequate resources. Of the Northern Irish border retailers who have never reported trade in illicit goods in the past, 63% said they would not report illicit trading because they believed it would make little difference.

  • Retailers and the Exchequer suffer as over 520 million cigarettes bought illegally or brought from overseas

    25 April 2018

    Following the release of Revenue’s Annual Report 2017 and Ipsos MRBI Illegal Tobacco Products Research Survey 2017, Retailers Against Smuggling (RAS) is again calling on the Government to provide more resources to combat smuggling, particularly due to the uncertainty caused by Brexit.

    The published reports show a marked increase in the trade of illicit goods in Ireland. Ipsos MRBI Illegal Tobacco Products Research Survey 2017 found that approximately 520 million illegal cigarettes (26 million packs) were consumed in Ireland in 2017, representing a loss to the Exchequer of approximately €229 million. Revenue’s report also highlight the disparity between cigarette seizures and summary convictions: of the 4,493 illegal cigarette seizures in 2017, there were only 26 convictions.

    Small and medium-sized retailers’ trade is being undercut by smugglers, and the Revenue report reiterates the depth of the involvement of criminal gangs in smuggling of illicit tobacco in particular. RAS have repeatedly voiced their concerns about the impact of the introduction of a 30g minimum RYO pouch size in May 2017. Following the introduction of this minimum, Ipsos MRBI Illegal Tobacco Products Research Surveys 2017 found that the number of illicit RYO pouches held by smokers surveyed has almost doubled in the last year – jumping to 15% in 2017 from 9% in 2016.

    RAS spokesperson, Benny Gilsenan, commented: “Revenue’s statistics show once again that Ireland still has a huge problem with the illicit trade, which harms small retailers and strengthens criminal gangs. These activities put retailers out of pocket and are happening because of a lack of awareness of the impact smuggling has on retailers, as well as a paucity of investment in combatting it,” Mr Gilsenan remarked.

    Mr Gilsenan concluded: “RAS is calling for proper enforcement of the current legislation to ensure those who sell illicit products are met with the full force of the law. Retailers nationwide have paid all the relevant duties and taxes, and are missing out on revenue and footfall as a result.”

  • Illegal cigarette factory found in Louth highlights growing market for criminal gangs, say concerned retailers.

    15 March 2018

    11 people have been arrested after an illegal cigarette production factory was discovered by Gardaí and Revenue in Louth today. 25 million illegal cigarettes were discovered, along with over 40 tonnes of tobacco, as well as production and packaging equipment estimated to have cost the Exchequer €12 million.

    Retailers Against Smuggling’s (RAS) Leinster spokesperson Benny Gilsenan commented on the breaking reports today “The uncovering of the illegal cigarette factory run by criminals highlights the growing market in Ireland for cheap illicit tobacco products all the while successive Governments increase the price of legal cigarettes that legitimate and tax paying retailers like myself sell. It is also striking that this illegal factory producing branded packs at a time when retailers are receiving plain packs legitimate retailers

    It is time for the Government stop increasing excise and focus on the issue and give consideration to the impact the illicit trade is having on small retailers who are already struggling to maintain business and keep on current employees. RAS would like to thank an Garda Síochána and Revenue for all their hard work but unfortunately while our Government continues to ignore the grave concerns of the declining small retailer, there will only be more illegal cigarette and alcohol factories found across the State”.

  • Fagan’s Law: Retailers Against Smuggling Welcome Move To Protect Children From Criminals

    8 March 2018

    Retailers Against Smuggling (RAS) has welcomed a new bill introduced by Fianna Fail’s Deputy Anne Rabbitte today, Wednesday. The Criminal Law Anne Rabbitte (Recruitment of Children to Engage in Criminal Activity) Bill 2018, more commonly referred to as Fagan’s Law, will make it an offence for an adult to recruit a child to carry out a criminal offence on his or her behalf.

    RAS spokesman Benny Gilsenan said: “Children are being recruited by criminals to sell smuggled cigarettes and other illegal products on streets and in markets all over the country. This is exploitation of children to commit serious crime and has to stop. RAS are welcoming this Bill which will protect these children, and once again highlight just how damaging smuggling is to communities and businesses in Ireland.”

  • Increase in excise on cigarettes nothing more than stealth tax on customers and a gift to criminals – Retailers Against Smuggling

    10th October 2018, Dublin

    Retailers are angry at the Government’s decision to impose yet another excise increase of 50c on tobacco, bringing the total cost of a packet of cigarettes to 12 euro. The move comes despite the Tax Strategy Group clearly stating in July that an increase in excise on tobacco would not generate any additional revenue, given the resultant levels of smuggling and money lost to the Exchequer.

    Retailers Against Smuggling (RAS) is in no doubt that these excise increases, which make Ireland the most expensive place in the EU to buy cigarettes, only serve to further incentivise smuggling and undermine Irish retailers.

    RAS’s pre-budget submission had called for a moratorium on further excise increases until they could be proven not to lead to a surge in smuggling as a result of price differentials.

    RAS spokesperson Benny Gilsenan: “Today’s decision is another slap in the face to retailers that have been compliant with every decision made by this Government, and who want more resources to be given to Revenue to protect businesses from illicit trade in tobacco, alcohol and solid fuel. Excise increases only widen the gap between legitimate shop-owners that are earning an honest living, and gangs peddling €5 cigarette packets in our communities. What’s more, this is little more than a stealth tax on our law-abiding customers, who choose to buy legitimate product rather than smuggled product from the street.”

    RAS’ budget submission called for not only a halt on excise increases, but also for more resources for Revenue; the registration of all solid fuel retailers and parliamentary support for the Sale of Illicit Goods Bill which is designed to address smuggling. If the Government is truly committed to helping retailers, these suggestions from our industry must be taken seriously. Mr Gilsenan continued “Our budget submission was reasonable and designed to protect small retailers nationwide. The government has completely ignored us yet again and the ramifications will be obvious in the coming months.”

  • One in Three Retailers Along the Border Concerned that Brexit will Create a Bigger Market for Smuggling Along the Border.

    28th September 2017, Dublin

    A cross-border survey conducted by Retailers Against Smuggling (RAS) has revealed that one in three retailers in Ireland are concerned about the rise in criminality and illicit trade following the decision of the UK to leave the European Union last year. Responses from 114 retailers in the counties of Donegal, Cavan, Monaghan, Sligo and Louth were recorded, along with 101 additional retailers across Northern Ireland. The survey results come weeks after Minister for Foreign Affairs Simon Coveney declared that Ireland’s interests would be at the forefront during Brexit talks. Smuggling and illicit trading increases must remain an important factor for the Irish government during border negotiations.

    The results showed that of those surveyed in the border counties, one third of retailers feel Brexit will create a bigger market for smuggling in the county, while 44% have noticed a significant increase in smuggled products and illicit trade in recent years, particularly since Brexit. This figure rises to 56% of their counterpart retailers north of the border.

    One-third of all retailers surveyed believe that Brexit will lead to a further presence of the black-market along the border and significant losses to the Exchequer, as well as their own businesses.

    RAS spokesperson and small business owner, Benny Gilsenan said “when a customer doesn’t buy their cigarettes in my shop, that means they’re not buying their pint of milk, they’re not buying their sliced pan. It has a huge knock on effect on small businesses”.

    Retailers on both sides of the border can no longer compete with the illicit trade of smuggled products. In terms of illicit trade, cigarettes and loose tobacco are by far the most urgent concern for retailers. Mr Gilsenan continued “smuggling is a constant concern for us as retailers. A packet of cigarettes bought on the street costs the consumer less than half price of what they would pay in a shop. A legitimate retailer selling a packet of cigarettes for €11.50 simply cannot compete with a smuggled pack that costs just €5. The Government needs to protect legitimate Irish retailers from the consequences of illicit trade”

    According to Revenue’s Illegal Tobacco Products Research Survey 2016, 10% of cigarette packs in Ireland are classified as illegal and a further 8% are Non-Irish Duty Paid. In a report released by Grant Thornton in 2015 found that a key driving force for the illicit trading of tobacco and alcohol is the continuously increasing level of excise duty on products. Half of all Irish retailers surveyed believe that the key to undermining cross-border smuggling of tobacco and alcohol is to harmonize tax and price differentials between Northern Ireland and the Republic of Ireland.

    The survey also revealed a shocking lack of trust in authorities both north and south of the border, with only 13% of those surveyed having confidence in the ability of authorities to tackle smuggling. There is a massive disparity between alcohol seizures and summary convictions in Ireland. In 2016 there were 1,875 seizures of illicit alcohol in the country, but only four summary convictions. Border retailers indicated in the survey that they would like to see the purchasing of illicit goods to be made an offence. This provision was one of the key measures proposed under the Sale of Illicit Goods Bill, which made it an offense for a person to buy alcohol, tobacco or solid fuel from an unregistered retailer.

    A roundtable discussion was held yesterday in Dublin to tackle Brexit, the Border & the Black Market. The event was co-chaired by Kevin Doyle, Group Political Editor at the Irish Independent, and Allison Morris, Security Correspondent from the Irish News. Members of An Garda Siochana, the PSNI, HMRC and political parties from both the Republic and the North met to discuss the issues that retailers on both sides of the border will face in the coming months and years. “The people that attended this roundtable discussion are the ones who can make a real impact. Events like this need to happen more often, it’s so important to keep the conversation going between officials in the Republic and the North. We need to work together on this.” Said Mr Gilsenan.

  • Retailers and the Exchequer suffer as over 742 million cigarettes bought illegally or brought from overseas

    27 April 2017

    The Revenue 2016 Annual report shows more resources are needed to tackle tobacco and alcohol smuggling:

    • In 2016, 10% of the cigarettes in Ireland were illegal, while 8% were non-Irish duty paid (NIDP)
    • This means that 742 million cigarettes in 2016 were not purchased from registered and legitimate retailers in Ireland.
    • Additionally, 9% of Roll Your Own (RYO) tobacco was illegal, with 3% NIDP.

    Retailers Against Smuggling (RAS) welcome the publication of Revenue’s Annual Report 2016 and Ipsos MRBI Illegal Tobacco Products Retailers Against Smuggling Research Surveys 2016, in particular the inclusion of Roll Your Own (RYO) tobacco figures ahead of the introduction of a 30g minimum pack size on 20 May this year. RAS now call for the Government to provide more resources to combat smuggling, particularly due to the uncertainty caused by Brexit.

    Small and medium-sized retailers’ trade is being undercut by smugglers, and the Revenue report reiterates the depth of the involvement of criminal gangs in smuggling of illicit tobacco in particular. RAS have repeatedly voiced their concerns about the impact of the introduction of a 30g minimum RYO pouch size on 20 May. This will mean the vast majority of RYO consumers face large ‘out of pocket’ spending increases, some as high as 300%.

    RAS spokesperson, Benny Gilsenan, commented: “Revenue’s statistics show once again that Ireland still has a huge problem with the illicit trade, which harms small retailers and strengthens criminal gangs. Only yesterday, RTE ‘Liveline’ broadcast a piece on adolescents advertising cheap, illegal cigarettes in Meath. These activities put retailers out of pocket and are happening because of a lack of awareness of the impact smuggling has on retailers, as well as a paucity of investment in combatting it,” Mr Gilsenan remarked.

    Alcohol

    The figures also highlight the shocking disparity between alcohol seizures and summary convictions: there were 1,875 seizures of illicit alcohol in 2016, but only four summary convictions. RAS call for proper enforcement of the current legislation to ensure those who sell illegal alcohol are met with the full force of the law. Retailers nationwide have paid all the relevant duties and taxes, and are missing out on revenue and footfall as a result.

    “At a time when retailers are facing an increasingly uncertain future with the looming spectre of Brexit, the Government have a responsibility to protect retailers and Ireland’s communities from this prevalent criminal activity.” Gilsenan continued.

    “RAS support Fianna Fáil TD Declan Breathnach’s Sale of Illicit Goods Bill, tabled in March. But it is clear to retailers that the Government needs to step up and protect small retailers before Ireland’s recovery is further threatened.”