Smoking costs economy up to €5 million a day - report

Smoking costs the Irish economy between €1 million and €5 million a day, new research claims.

Smoking costs the Irish economy between €1 million and €5 million a day, new research claims.

The study by UCD economist Dr David Madden calculates the cost of tobacco in the workplace in terms of lost productivity from increased absenteeism and smoking breaks.

Commissioned by the Department of Health's agency, the Office of Tobacco Control, the report estimates smoking cost the Irish economy between €385 million and €2.07 billion in 2002 in lost productivity.

Speaking at a one-day seminar in Dublin to unveil the report, Dr Madden said: "It is clear that smoking has a direct impact on the competitiveness of Irish business."

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He said: "Encouraging and supporting employees who are trying to beat this addiction makes sense for an employer. This data shows that by steadily reducing the number of people who smoke we can reap tangible benefits in both social and economic terms."

The report's findings will no doubt strengthen the Minister of Health's case for introducing a complete ban on smoking in the workplace on January 1st, 2004.

Speaking at the seminar, Mr Martin, said: "The damaging effect of tobacco smoke on human health is indisputable and it is a cause of ill health and mortality in healthynon-smokers."

He said the proposed ban is "primarily about being able to work and socialise in a clean healthy smoke-free environment."

A paper on the economic costs of smoking was also given by German health economist, Dr Robert Welte.

An expert in the area, Dr Welte, estimates the cost of smoking to German society is at least €18.8 billion a year.

He said: "We are all aware of the tremendous health benefits that giving up cigarettes brings. Employers, in particular, should also realise the cost savings and productivity increases that this positive move can bring about.

"Comprehensive information and cessation programmes for employees can bring real financial improvements for a company in the medium to long term. It should become a priority for employers," he added.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times