The Sub-committee received a number of letters from individual retailers which we have decided not to print in full, but which we have reported to the House. This appendix includes extracts from those letters germane to the Sub-committee's inquiry.

  From L A and C A Rourke, Hollingworth, Cheshire.

  It is approximately five to six years ago that we first noticed sales of tobacco and cigarettes beginning to slip and after some time we were offered the opportunity to purchase some smuggled goods from one of the local residents, an offer which my wife declined . . . There are many [people] involved in this illegal activity, working in public houses, door to door and even in school playgrounds. As my business declines I have . . . telephoned Crimestoppers etc giving details of individuals whom I know are involved and whilst I have had a visit from the Customs they tell me they have not witnessed any activity and, due to manpower shortages, basically they want the "ball in the net" and they have bigger fish to fry thus ensuring their jobs and salaries and safe.

  From being a solvent business that operated on a cash basis we have remortgaged twice, have numerous loans and purchase stock on credit often going past our credit limit. Our actual sales on cigarettes are down by £1,500-1,800 per week, at least, and tobacco sales have been non-existent for years and we are just one small village newsagent. Multiply that by all the other small shopkeepers who are suffering the same and it becomes apparent that there is a "monumental" and unjust state of affairs in this country.

  What suggestions do we make?

—  Bring taxation into line with Europe. Not a policy we would have condoned at one time, but we now believe yourselves and previous Governments have lost the thread;

—  Stop deluding yourselves that higher priced cigarettes etc are for the good of our health. There are as many, if not more, smokers in this country and the Government is not collecting the revenue;

—  Insist that all cigarettes etc are sold at the recommended retail price, be it by small store or supermarkets;

—  Penalise people buying as well as those selling contraband goods;

—  Give us a TV campaign and poster campaign that show bootleggers to be robbing society;

—  Make the police less apathetic and tell them it is not something to keep referring to Customs;

—  Create a new style Customs officer at ports and airports made up of retired police officers and bankrupt newsagents who would probably work for a smaller salary;

—  Look seriously at licensed premises because landlords and landladies are either frightened or are in cahoots with smugglers and turn a blind eye because customers will buy a drink in their struggling establishments whilst waiting for the smuggler's boat to come in;

—  As well as stopping selected vehicles on return pre-select vehicles leaving the UK and request on return they submit to a search. Fine the person to whom the vehicle is registered to if they fail to comply;

—  Be more aware that it is not only "white van man" bringing in illegal goods; it is also "any colour saloon man", some of retirement age. "Tenerife man" and "Dublin man" are also people to target;

—  Think about withdrawal of passports.

31 July 1999

  I am extremely alarmed at the Chancellor's recent comments that he intends to increase tobacco and cigarette prices yet again, this being done under the guise of the tax increases going towards the NHS. The gentleman has totally missed the point! So little of these products are now bought legally across the counter that all this action will achieve is to push people towards bootleggers, thus making them even richer and the likes of myself and the NHS even poorer. In my opinion, the statement was aimed at the uniformed members of society (non smokers, non drinkers) and is seen as a vote winner at the next election. The facts are that millions/billions of pounds are being lost to this country's coffers and no amount of price increases are going to make up the shortfall in these unpaid taxes. We are a member state of the EEC and therefore these prices should be and must be brought down to their price level. That, in my opinion, is the only way to stamp out the bootlegging.

15 November 1999

  The Wright Wine Company, Skipton, North Yorkshire

  Constantly we receive comments from "the general public" who, in their naivety, say how we are fortunate to be in the north and not suffering from bootlegging, and indeed legal imports, as they do in the south. How wrong they are. We may not be experiencing the enormity as in the south, but I can assure you there is a great loss of trade to the legitimate trader. The "fortnightly van" bringing in pre-ordered liquor is easily accessed with just a few telephone calls. The legitimate import of "allowance free" booze has put many jobs in peril, and not just the wine trade. Consider those affected when a wedding is held in a marquee or village hall after a van ride across the Channel. The hotel trade, and their suppliers, are suffering very high losses.

23 August 1999

  Bracken Bank Stores, Keighley, West Yorkshire

  Our business is suffering directly as a result of the Government's failure to stamp out smuggling . . . One of my customers has recently been jailed, and his wife given 150 hours community service, for evading £23,000 duty on alcohol which he sold on his sandwich delivery round. His defence was to state that his business was suffering as a result of ill health. But in the previous week's edition of the paper his wife is featured with a complaint about new bedroom and kitchen fittings for their new bungalow. The two stories speak volumes.

  I have travelled through Leeds-Bradford and Manchester Airports on many occasions and never seen a customs official, let alone been searched by one. So please urge the Government to create some jobs and stamp out this problem.

28 August 1999

  Tanners Wines Ltd, Shrewsbury

  We desparately need greater parity with European duty levels. We have lost countless weddings this summer to Calais, added to which there are now regular "booze cruise" bus trips from many Shropshire villages. Evidently the Exchequer loses not only the duty but also the tax that we and our employees would pay if we could grow unchecked by this competition.

6 September 1999

  Bob's News, Leeds

  Smuggling is caused by the difference in tobacco tax between the United Kingdom and other members of the European Union. Smuggling will continue to grow until the Government in Westminster realises that the economic incentive to illegally import tobacco goods is so great that no matter how many bootleggers are put out of business others will always be ready to take their place. The Robin Hood factor also needs to be addressed. Robbing the rich (the Government and shopkeepers) to give to the poor (themselves). Why pay £7.95 for 50g Golden Virginia when you can get it for £3? Why pay £3.83 for 20 Regal King Size when from a neighbour I can buy the same for £2.20? My customers who used to buy tobacco goods tell me that they now buy from people in pubs, clubs and neighbours.

  The sales in tobacco goods in our shop have halved in value over the last five years . . . I believe that the only way to stop the majority of sales of tobacco goods becoming illegal is to reduce tobacco taxes to the levels applied within Europe. After all we are supposed to be one economic union. Didn't Mrs Thatcher say that you can't buck the market? In the sale of tobacco goods this would appear to be true and no matter how you tinker with Customs & Excise and confidential telephone numbers you will not stop the flood of illegal imports of tobacco goods unless the rates of duty throughout Europe are more equal.

27 July 1999

  We closed our shop for the last time on the 30 October 1999 and now have to survive on Income Support. Before the bootlegging of cigarettes became the fashion every other customer who frequented our shop used to buy cigarettes. Cigarettes brought customers into the shop. In the last few months before we ceased trading we had just three regular customers for tobacco products.

22 November 1999