28 January 2000

 

MINISTER IN TOBACCO INDUSTRY DISCUSSIONS

Earlier this week, Enterprise, Trade and Investment Minister, Sir Reg Empey MLA, met representatives of management of Gallaher Ltd to discuss how the Government's proposed Fiscal Marking Scheme for the cigarette industry would impact on the future of the companies.

Today he met a trade union delegation led by North Belfast Assembly Member, Billy Hutchinson, to discuss the implications for Smurfit TP’s Ballygomartin plant which supplies packaging for the cigarette industry.

Speaking after today’s meeting, Sir Reg said: "I am very concerned about the likely impact of this scheme on the Gallaher plant at Ballymena and its suppliers such as Smurfit TP. It could mean redundancies in the short term and impact adversely on the long term viability of these and other local companies and the communities in which there are located.

"I understand the Tobacco Manufacturers Association has put forward alternative proposals to the Government and that these are currently under consideration.

"I have been fully briefed by Gallaher about the prospects facing Lisnafillan if the scheme is introduced as proposed by the Chancellor of the Exchequer. While I support the Chancellor's commitment to reduce cigarette smuggling through the proposed scheme, I would hope that an alternative can be found that will not lead to redundancies.

"Tobacco duties are a reserved matter and as such are outside the remit of the Assembly. Nevertheless, I have written to the Chancellor urging him to consider other ways of resolving this issue," added Sir Reg.

NOTE TO EDITORS

Fiscal Marking Scheme. The Government intends this scheme to combat the growing problem of cigarette smuggling. Cigarette packaging would be redesigned to incorporate a date-limited "duty-paid" marking.

Product would not be permitted to be sold after the date shown on the pack.