RESOLUTIONS providing for the cigarette and petrol price increases in the Budget were passed by 78 votes to 69 last night.
Earlier, the Taoiseach, Mr Bruton, moving the resolution in the Dail to increase duty on cigarettes, said it would yield £14.9 million during the remainder of this year and £17.6 million in a full year. Consumption of cigarettes had increases by 1 per cent over the last year.
The Fianna Fail leader, Mr Bertie Ahern, said that more cigarettes were now being sold illegally on the streets in parts of Dublin than were being sold in the shops. No attempt was being made to stop this trade, which was making it impossible for legitimate retailers in some areas to sell cigarettes.
Mr Michael McDowell, PD spokesman on finance, supported the increase in cigarette duty. He also expressed concern about the level of illegal trading in cigarettes, which he said was backed by criminal elements. "It could be stopped if there was a will to do it," he said. "It is a source of crime and extending the influence of criminals."
Mr Willie O'Dea (FF, Limerick East) said that the money raised was funding other operations such as drug dealing. Last year, illegal cigarettes valued at £530,000 were seized on the streets of Dublin, with a loss of £400,000 to the Exchequer.