Madam, – Noel Whelan (March 14th) is totally dismissive of a report on tobacco taxation which I prepared at the behest of The Irish Cancer Society, The Irish Heart Foundation and ASH Ireland. He describes its findings as “badly thought through” and “off the wall”. He goes on to say that economists have the luxury of criticising the actions of politicians who have to operate in the real world.
As an economist, I criticise politicians when I believe they are pursuing incorrect policies and I laud them when I believe they are pursuing sensible policies. That is the nature of public debate, surely.
On the smoking issue, may I point out to Noel Whelan what is happening in the real world? In Ireland, 7,000 people a year die from smoking-related illnesses. These illnesses cost the Irish health budget €1.5 billion a year and there is an immense additional cost to the Irish economy from lost productivity due to them. Twenty-nine per cent of the population and 35 per cent of young people are smokers.
Faced with these real-world facts, I believe that public policy should strive to reduce what Mr Whelan describes as “a dangerous and disgusting habit” “which imposes an unfair burden on all our health services”.
International and domestic research shows that, for young people in particular, price is a very effective way of reducing demand. A 10 per cent increase in the price of cigarettes would be expected to reduce consumption by 4 per cent. I have built this into my calculations of the revenue that could be raised from the proposed €2 increase. Within the whole smoking agenda, discouraging young people from starting to smoke has to be the key priority. I believe that my suggestion would help.
I also believe the social and health benefits of increasing the policing of smuggling would far outweigh the cost of doing so. I never suggested it would be possible to achieve tax harmonisation north and South over the next four weeks. What I am suggesting is that the authorities in the UK and Ireland should work together to eventually achieve tax harmonisation of tobacco, because the financial and health benefits to the UK would be even greater than for Ireland. Indeed, a wider, EU-based approach is also essential.
Mr Whelan is correct in saying that the burden would fall disproportionately on the lower paid and those on welfare. In recognition of this, I suggested that Government should at least treble the amount of money spent on tobacco control measures, and should also subsidise tobacco replacement therapies to help wean people off an addiction that is killing them.
Finally, I would point out to Mr Whelan that what works in economic theory sometimes does work in practice, and this also should be remembered over the next four weeks. There has rarely been a better opportunity to make a serious attempt to reduce the evil of smoking. It should be exploited. – Yours, etc,
JIM POWER,
Fortfield Park,
Dublin 6W.
Madam, – It was refreshing to see a columnist questioning with such straightforward sense the barrage of proposals to fix the economy thrown out by Jim Power. As Noel Whelan expertly shows in his article, it does not always make sense to believe everything we are fed by this high-profile economist. – Yours, etc,
DAVID GORDON,
Newlands Cross,
Clondalkin,
Dublin 22.
Madam, – In response to the caveats raised by Noel Whelan, it is important to stress that price remains the single most important factor in determining whether or not young people start smoking, and in encouraging existing smokers to quit.
A €2 increase would lead to a reduction of about 10 per cent in the number of people smoking. This would have significant health and quality-of-life benefits, as well as significant cost savings both for smokers who quit and for the healthcare system. It would also raise up to €420 million.
As for Mr Whelan’s concerns for the additional hardship imposed on low-paid workers and welfare recipients, any measures that reduce the scourge of tobacco addiction, which afflicts these groups disproportionately, are more than justified. – Yours, etc,
Dr ANGIE BROWN,
Chair, ASH Ireland,
Consultant Cardiologist,
Northumberland Road
Dublin 4.