April 8, 2011

Imperial Tobacco supports reasonable, proportionate and evidence-based regulation of tobacco products.

However, the introduction of tobacco display bans announced by the New Zealand Government shows an unreasonable approach that is not based on evidence.

Sales and Marketing Director Tony Mears said “Non-smokers don’t suddenly decide to buy cigarettes because they see a small display in a dairy.

Evidence from Iceland and Canada shows smoking prevalence has actually increased in some regions as a result of display bans.” Evidence from overseas also highlights the unintended consequences of excessive regulation.

Rather than reduce smoking prevalence, display bans are more likely to increase the unregulated illicit trade in tobacco products that has happened in other countries. Tony Mears said “There is a real risk that the illicit tobacco market in New Zealand will increase if tobacco is over-regulated.

The New Zealand tobacco industry is already one of the most highly regulated in the world.” He referred to Australia where excise taxes were dramatically increased and display bans have been introduced in most states.

These regulations haven’t affected smoking rates, but have increased the trade in illicit tobacco which is controlled by organised crime who don’t pay taxes but are constantly seeking new customers, many of whom may be children.

"A recent report by Deloitte shows the trade in illicit tobacco has jumped by 150% in just 3 years," he said. "Almost 1 in 7 cigarettes consumed in Australia now is supplied illegally." “Regulations like display bans that erode adult freedom of choice and restrict consumer awareness are highly questionable in a modern democracy. Having made the choice to smoke, adult smokers should have the right to see what brands are available for sale.”

ENDS

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