369. Deputy Mattie McGrath asked the Minister for Health regarding the new tobacco licence required of shops selling cigarettes, if she has considered that small shops are already struggling and that many cannot afford this additional €1,800 annual cost; her views on whether people will simply go to large retailers if they cannot purchase cigarettes from their small local shops; the reason small local shops are expected to pay the same cost as a large retailer; if she is aware of the damage this will cause to the rural economy; and if she will make a statement on the matter. [10850/26]

Jennifer Carroll MacNeill, Minister for Health: Tobacco use is the leading cause of preventable disease, disability and death in Ireland and is responsible for 4,500 deaths here each year. Smoking costs the Irish economy €10bn per year, and places a huge burden on our health services. It is the Government’s objective to eliminate tobacco use in order to address the enormous burden of disease that it continues to cause in our population.

The requirement for a licence to sell tobacco and nicotine-inhaling products, as set out in The Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023 came into effect on the 2nd of February 2026. This licensing system fulfils the legislative commitments made in Tobacco Free Ireland and is intended to contribute to improvement of the enforcement of tobacco control and related law as well as reflect the seriousness of the health harms caused by tobacco compared to other products.

Consultation on this 2023 legislation took place in 2014 and 2015 with interested stakeholders, including retailers. Retailer submissions to the consultation proposed that the fee be proportionate by either number of outlets or volume of sales. Following consideration of all suggestions, the General Scheme of the Bill and accompanying Regulatory Impact Analysis were published in 2019 with a proposal to set an annual fee per outlet.

Pre-legislative scrutiny from 2021 to 2022 was conducted by the Oireachtas Health Committee, who held sessions with stakeholders from public health, retail and industry, and received further written submissions from stakeholders such as retail organisations before issuing their recommendations for the legislation.

The final Bill was debated and passed in the Oireachtas in 2023. The Act provides for an annual licence per outlet for those wishing to sell:

1. a) tobacco
2. b) nicotine inhaling products, or
3. c) tobacco and nicotine inhaling products

The Act provides that the Minister for Health may set a fee for each of the three licence categories by Regulation. Those fees were set in the Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023 (Fees) Regulations 2024.