EU Says No Minimum Price On Cigs

The European Court of Justice has ruled Ireland cannot set minimum prices for tobacco products.

The ruling, announced today, declared that since a minimum price would distort competition and benefits manufacturers, it was an unconstitutional from of action.

The declaration came in the form of an opinion by the court's Advocate General.

In December 2006 the European Commission wrote to the Irish Government saying that the policy of setting minimum retail prices for cigarettes was contrary to EU law since it limited the freedom of producers and manufacturers to determine their selling prices.

However, after Ireland failed to legislate for the relevant EU directive the EC took Ireland to the European Court of Justice, before finally making its ruling today.

The news will come as a double embarrassment for the Government after stirring a vocal reaction amongst opposition parties and backbenchers over new proposals to further reduce the drink driving limit.

The bill was said to have been "kicked into touch" following assertions that the bill would not be supported.

On Tuesday night, Mr Cowen and Mr Dempsey called on backbenchers to reflect on their positions at the end of a heated parliamentary party meeting.

(DW/BMcC)