THE Government is losing tens of millions of pounds each year through illegal street sales of tobacco, the outgoing president of the National Federation of Retail Newsagents, Mr Martin O'Connor, has claimed.
Failure to change the laws and to impose stricter controls on the distribution of tobacco had led to the creation of a virtual mini industry in illegal goods, he said.
Addressing the NFRN annual dinner in Limerick last night, Mr O'Connor said: "This, coupled with the ongoing uncertainty over publisher margins, the unfair competitive advantage currently enjoyed by the multiples in terms of newspaper and magazine sales and the ongoing problem of physical attacks on retail newsagents, leaves the retail sector in serious danger of becoming marginalised in Irish society."
Crime had led to a 50 per cent increase in insurance premiums for small retailers, he said. Lockup shops had been forced to provide all sorts of shutterings and alarm systems.
"Similarly, on the issue of multiple outlets, we believe there is a legislative duty on the Government to ensure that unfair competition between retailers and the multiples who can `cherry pick' the titles they want to sell and offer alternative costings because of the scale of their operations."
The NFRN, which represents more than 800 retail newsagents, recently made representation to the Government on illegal tobacco sales. It had to be addressed as a matter of urgency, Mr O'Connor said.
Mr Joe Holmes, chief executive of the NFRN, said they were very concerned that a newspaper price war following the introduction of a top newspaper by an English tabloid could lead to the long term erosion of the newsagent's profit margin.
"Our experience of price wars in the UK in the past has shown that in order to recoup some of the losses created by the price war, the newspapers reduced the newsagent's profit margin to compensate," he said.
The Minister for Communications, Mr Lowry, said it was vital for the health of the economy that printed media should flourish.
"We need a balance in the media that are available to us and I believe that print will always have a central role to play alongside the newer media like radio and television.
"Print media, however, need an efficient and speedy distribution channel if they are to compete effectively, hence the critical role of the newsagent."