Sale of black market cigarettes rife in Athlone

The sale of black market cigarettes in Athlone is rife and is resulting in job losses at legitimate retailers around the town, a local businessman. Martin Mulligan, who owns and runs the Topaz Londis Filling Station on the Roscommon Road, says he is down three staff since the Government ban on the display of tobacco was introduced, but at the same time, door-to-door sales of illegal cigarettes and tobacco products are flourishing. He is a member of the newly-formed Retailers Against Smuggling group, which is calling for a crackdown on illegal tobacco sales, a trade the group believes is costing the State millions of euro in lost revenue and leading to job losses at shops and forecourts across the country. "It (the black market trade) is absolutely huge here," Mr Mulligan contends. We have to hideaway our products, we are not allowed to display them under the new laws but they are openly on sale on the streets of Athlone and Moate. It's also being sold door to door." He estimates that tobacco sales make up 30% of his trade on a daily basis, and if it is lost, additional associated sales like newspapers, lotto and confectionary will also fall by the wayside. "There are being brought in a 35c a packet from places like China and then they are selling them on at €4 a packet or three for €10. Our price is €8.45," the Athlone retailer explains, which is the highest price for cigarettes in the EU. "Many of them actually sell them by the carton and the contents of many of them is fake, which could create health issues," Martin Mulligan adds. The Retailers Against Smuggling Group claim over one billion cigarettes were sold by smugglers in the past year, which means that one in five cigarettes in Ireland were smuggled. In 2008, Ireland's retailers lost €487 million in turnover to the illicit market and a further €358 million in cross purchases. They group also contend while retailers are being unjustly affected by the increased movement of cigarettes on the black market, the Irish economy is also suffering as a result of contraband cigarettes with non Irish duty-paid cigarettes depriving Ireland of €387 million each year in lost government revenue. Martin Mulligan believes that unless the issue of tobacco smuggling, which he claims is controlled by a large criminal element is addressed by the Government and the relevant authorities, then Athlone is likely to see more and more retailers being forced to close their shutters permanently: "There is a very real problem with tobacco smuggling in this county and the Midlands as a whole. Everyday genuine retailers that provide a legal product, like cigarettes, are being bypassed with the lure of cheap, counterfeit unregulated alternatives that are readily available". "Smuggling causes lost sales of everything and our trade stands to have 5,000 job losses as a result. This trade is growing at the expense of legitimate retailers. Our livelihoods are under a considerable threat posed by the smuggling tobacco," he points out. The average retailer has a very important role to play in society. They do much more than sell confectionary, they act as a focal point for a community; this could be taken away sooner rather than later." He is calling on local shops to get involved in their campaign by emailing:info@retailersagainstsmuggling.ie or by calling 1800 727 727 and to pass any information about cigarette smuggling to the gardai and the relevant authorities.