Ireland Today: Wealth more important than health for unions

Each year in the run up to the budget, health professionals and the anti-smoking lobby plead with the Finance Minister to increase the price of cigarettes. They argue that the more expensive they are, the fewer people will smoke and, more importantly, fewer young people will take it up. Successive finance ministers were believed to be sympathetic to this view but have been reluctant to act. This year Brian Cowen added 50c to the price of 20 cigarettes, far short of the amount advocated. The last increase in tobacco excise duty was a modest 25c three years ago. The inhibiting factor for Mr Cowen and his predecessor is the fact that the price of cigarettes is included in the Consumer Price Index, which in turn drives wage demands. In any other country the Government of the day would simply change the basis of calculating the CPI, but not here. In Ireland the trade union movement has a veto on such a change, prompting Mr Cowen to issue a plea to the unions in his Budget speech. He called for the exclusion of this latest increase from the CPI, but trade union leaders were quick to reject his plea out of hand.