From: Business & Leadership (Ireland)
The Irish branch of the National Federation of Retail Newsagents (NFRN) will launch a proposal for a smartphone app to combat the illegal cigarette trade at a meeting this evening that will be attended by the Minister of State for Small Business, John Perry TD.
“NFRN Irelan is proposing that the Irish Government consider adopting the model being introduced in Switzerland, and work with the tobacco industry to develop a similar smartphone app for use in Ireland,” said NFRN president, Joe Sweeney.
“Such an app would provide law enforcement officials, where there is a suspicion that tobacco products are counterfeit or smuggled, with a simple and effective tool for determining immediately whether or not this is the case. It would also provide consumers with a means to ensure they have not unknowingly been sold counterfeit/smuggled goods.”
Sweeney said tobacco companies have developed a new ‘Codentify’ technology that can allow anyone to track and trace tobacco products. “Essentially, Codentify involves printing a unique and secure, eye-readable, 12-digit code directly onto packs and cartons during manufacturing. The solution works on standard equipment and is easily integrated into the production process. According to the tobacco companies the Codentify solution is secure, including various measures to make it impossible for counterfeiters to replicate or steal a valid code.”
According to Sweeney, the illicit tobacco trade, including ancillary purchases made when customers buy cigarettes, is estimated to cost retailers €500m in lost sales a year, which directly resulted in the loss of 700 jobs in 2011 alone.
“It is clear that the black market in tobacco has become such a huge problem over the last 10 years due to the Government’s policy of constant tax hikes. Cigarettes in my shops now cost about €9 while they can be bought on the street for as little as €3.20. While I don’t expect that taxes will be reduced anytime soon the Government must realise that any further tax increases will simply drive smokers into the arms of the criminals and away from legitimate, job creating retailers.
“Similarly, it appears that the Minister for Health supports the introduction of plain packaging laws in Ireland like those that at are being put in place in Australia next month. It must be clear to anybody with even a dash of common sense that introducing this in Ireland will make it easier for criminals to counterfeit and smuggle cigarettes. At the same time it would remove the one thing that allows the average consumer to distinguish the legal products I sell from the black market variety.”
