Price hikes - good for your health 
03/10/2008 
In advance of this weekend’s supplementary cabinet meeting to deal with the budget, the Faculty of Public Health Medicine of the Royal College of Physicians of Ireland (RCPI) has urged the Minister for Finance, Brian Lenehan T.D. 

and his colleagues in Government to apply significant increases to the duty levied on tobacco and alcohol products.

 

Recommendations:

  • €2 increase in the price of a packet of 20 cigarettes.
  • 10% increase in the duty levied on most alcohol products.
  • 20% increase in the duty levied on spirits.
  • A reduction in the duty levied on low alcohol drinks (less than 3% alcohol).
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In a submission dealing with public health budgetary changes the Faculty of Public Health Medicine, RCPI has called for evidence based strategies to reduce the consumption and the harm caused by alcohol and tobacco products.

 

Tobacco  

Calling for the increase Dr. Fenton Howell, Faculty spokesperson on tobacco control said “there is a compelling argument for a €2 increase in the price of a packet of 20 cigarettes in the forthcoming budget, a measure which could see over 150,000 smokers quitting and an increase in tax revenues for the government.”

 

In supporting their claim, the Faculty make reference to the recently published World Health Organization report on the global tobacco epidemic (2008), which states that increasing tobacco taxes by 10% generally decreases tobacco consumption by 4% in high-income countries while tobacco tax revenues to government increase by nearly 7%.

 

“Half of all smokers are killed as a direct result of their smoking, and half of them die prematurely depriving them of 10 healthy quality years of life.” said Dr. Howell “It is difficult to imagine any other policy change which would have such an impact on reducing smoking prevalence so dramatically, whilst at the same time enhancing the exchequer to further fund tobacco control initiatives.” said Dr. Howell.

 

“While there has been a steady rise in the price of tobacco products, the actual linear increase is downward. Other than in 1999, no budget has ever increased the price of tobacco products by more than 10%, hence it is no surprise that smoking rates have not fallen. Indeed following the introduction of the smoke-free initiative in 2004, there were no increases in the price of tobacco products in the following two budgets.


Alcohol

Dr. Declan Bedford Faculty spokesperson on alcohol said “the evidence is clear from the international literature that increasing taxation on alcohol is among the most effective methods for reducing consumption and harm particularly amongst young persons. While taxes are already high in Ireland, alcohol is now much more affordable. The evidence is that a further rise in excise will reduce consumption, as happened with spirits in 2002.”

“The Faculty urge the Minister to increase duty on alcohol products by at least 10% and by at least 20% on spirits. The Faculty also call for a reduction in the duty levied on low alcohol drinks, those with less than 3%.” said Dr. Bedford.

 

Highlighting the need for action Dr. Bedford stated that “Ireland is now at the top of the European league for alcohol consumption and harmful drinking patterns and our high level of consumption and our pattern of binge drinking have taken a severe toll on the health and well being of the nation.”

 

Notes for Editor

 

Key statistics on alcohol

  • Alcohol related hospital admissions increased by 88% (from 9,254 to 17,378) between 1995 and 2004.
  • Hospital admissions for alcohol related liver diseases increased by 147% in the same period.
  • Death from alcohol-related diseases has increased from 3.8 per 100,000 adult population in 1995 to 7.1 in 2004.

Excess consumption of alcohol also has significant consequences economically:

  • €1 billion cost to industry due to poor output as a result of absenteeism and poor performance (2003) making our industry less competitive.
  • €433 cost to health services (2003).

Under age drinking

  • 1 in 3 children aged 15-17 years report that they have been really drunk in the last 30 days.
  • Between 2000 and 2005 there was a 135% increase in juvenile alcohol related offences. The younger a person starts drinking the greater likelihood of problems in adulthood.
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Key statistics on tobacco 

  • There are now over 1 million smokers in Ireland (940,000 adult smokers, 63,000 children smokers), the highest number of smokers in the last 10 years.
     
  • In terms of death and disability, smoking is a major cause of lung cancer, heart disease (acute and chronic), stroke and chronic respiratory problems to name but a few. In Ireland, conservative estimates suggest about 6,000 people die annually as a result of tobacco related diseases.
  • This level of consumption causes an unbearable burden on individuals, their families and friends, and our health and social care services at primary care, secondary care, tertiary care and almost inevitably, on palliative care services.
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  • On raising taxes on tobacco the WHO report states: “increasing the price of tobacco through higher taxes is the single most effective way to decrease consumption and encourage tobacco users to quit. A tax increase also directly benefits governments through increased revenues, which can be used for tobacco control and other important health and social programmes…
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  • Whilst there has been a steady rise in the price of tobacco products, the actual linear increase as is downward. Other than in 1999, no budget has ever increased the price of tobacco products by more than 10%, hence it is no surprise that smoking rates have not fallen. Indeed following the introduction of the smoke-free initiative in 2004, there were no increases in the price of tobacco products in the following two budgets. 
  • Data from the Office of Tobacco Control show that in the immediate aftermath of the smoke-free initiative in 2004 there was a reduction in the prevalence of smoking, however, with no price increase in the following two years the prevalence rose again. Since 2004, the actual average annual price increase is of the order of 3.2%. Given that a 10% increase is needed to affect a 4%, it is clear why our fiscal policy with respect to tobacco has not yielded the desired outcome.

 

For more information contact

Paul McAuliffe, MPRII
Communications Manager
Royal College of Physicians of Ireland
Frederick House
19 South Frederick Street
Dublin 2
Ireland

Direct Ph: 01 8639765
Mobile Ph: 087 682 1046
Main Ph: 01 8639700
Fax: +353 1 6724707
paulmcauliffe@rcpi.ie
www.rcpi.ie