Health The 25 cent increase in the price of a packet of 20 cigarettes announced in yesterday's Budget was just half the increase recommended by the Minister for Health, Mr Martin.

The price increase came into effect at midnight.

Both ASH Ireland and the Office of Tobacco Control said they wished this year's increase had been higher to encourage smokers to quit, and to discourage non-smokers from taking up the habit.

The chairman of ASH Ireland, Prof Luke Clancy, described the increase as very disappointing.

He said the Finance Minister, Mr McCreevy, had missed an opportunity to encourage more smokers to stop smoking.

"Most smokers want to quit smoking, and price is now established as the most effective means of encouraging smokers to quit and discouraging young people from experimenting with tobacco."

He said that a substantial price increase would have, on top of the Government's plan to ban smoking in all workplaces including pubs and restaurants from February, added to the pressure on people to give up smoking.

Mr McCreevy is understood to have been concerned a more substantial increase in tobacco prices would push up the rate of inflation.

Prof Clancy said it was imperative the Government found ways of dealing with inflation fears.

The Office of Tobacco Control's director of communications and education, Ms Valerie Robinson, said while she welcomed any increase in tobacco prices above the rate of inflation, her office would clearly have preferred the increase to have been higher.

She acknowledged a price increase alone would not solve "the tobacco epidemic".

However. she said it was the single most important instrument available to the Government in its fight against tobacco.

While earlier this year Mr Martin called for a 50 cent increase in taxes on cigarettes on Budget day, he said yesterday he was "happy" with the 25 cent increase on top of a 50 cent increase last year.

He said it would discourage young people from smoking.

"In the context where the Government has a wider objective of getting inflation down to 2.5 per cent, and given the social partners were not agreeable to getting rid of the link between the Consumer Price Index and cigarette increases, then I think it's understandable the Minister could not go further," he said.

The increased taxes on cigarettes, with pro-rata increases on other tobacco products, are estimated to yield €1.2 million for the Exchequer this year, and €59.7 million for the Exchequer in 2004.

There was no increase in alcohol prices in the Budget.

Again, Mr Martin said Mr McCreevy's prime concern was inflation.

"Obviously an increase in alcohol is always welcome from a public health perspective.

"However, there has been a decline in consumption over the last 12 months, and our tax take from drink in this country is one of the highest in Europe."