More taxes and drab packages for cigarettes to deter the young from smoking

By Dr. Ananya Mandal, MDApr 28 2010

From 1^st July 2012 companies making cigarettes will be allowed only to have a brand name and a graphic health warning on their cigarette packs. There has been a huge debate over this issue. Trade experts believe that this move could mean that the Federal Government may have to cough up more than $3 billion a year to cigarette companies. Tim Wilson from the Institute of Public Affairs also believes that this would cost taxpayers $3.4 billion a year in compensation to tobacco companies. However Australia will be the first country to introduce such a measure.

Criticism

Opposition health spokesman Peter Dutton has criticized the government in bringing this move now in order to win favors from the community. He feels, “If they were convinced, I presume that they would have introduced the measure before now…It doesn't surprise me that these sort of distractions are released in the run up to a News poll weekend, at a time when the Government needs to distract people's attentions away from their failing.”

Ayes

Health Minister Nicola Roxon retaliated by saying that the move was being considered. “I think that our merits when it comes to health reform and the assessments that people will make about the comprehensive approach we've been taking in hospitals prevention and in primary care will withstand any of that scrutiny,” she said. The Australian Greens, Family First Senator Steve Fielding and independent Senator Nick Xenophon has joined in their support of the move so that the legislation can be made a reality. Senator Xenophon urged the Coalition to join the move and has said in a statement that this increase in cigarette tax may aid more anti-smoking measures.

Companies unhappy

There has been an understandable dissatisfaction in the cigarette manufacturers over this issue too. They are planning legal action against this. Imperial Tobacco Australia spokeswoman Cathie Keogh said, “If the tobacco products are available in the same easy-to-copy plain packaging, it makes it much easier for counterfeiters to increase the volume of illicit trade in Australia, which is currently reported at about 12 per cent of the market.” Ms Roxon however feels confident that the new law will be able to withstand legal action. She said in a statement, “The World Health Organization makes it quite clear that this should be considered by countries, this type of action…We won't be put off by the fact that tobacco companies won't like this action….Tobacco companies didn't like it when advertising was banned. But this is the last remaining step that needed to be taken.”

Health experts speak

Health experts have found this move to be a necessary one at this juncture. The president of the Public Health Association of Australia, Mike Daube said it will help de-glamorize cigarettes. “This is frankly pretty much as good as it gets now in terms for tobacco policy…I think within a few years, the decline will be so fast that cigarettes truly will be a habit for consenting adults in private only.” He feels it is great that Australia has taken this initiative. “What this means now is that cigarettes are essentially being treated as they should be, like a poison….Cigarettes kill one in two of their regular users and what smokers will get now is just a brand name and warning information,” he said.

The Australian Medical Association president Andrew Pesce felt that the taxes and the packaging was aimed at stopping young people from taking up smoking rather than making smokers quit. Cancer Council Australia chief executive Ian Olver also said that the move would stop some people smoking and cut cancer rates. It would make Australia a world leader in reducing tobacco deaths, he said.

Increased taxes

From tonight at midnight pack-a-day smokers will have to pay an extra $15 per week in taxes. Prime Minister Kevin Rudd has proposed to increase the price of a pack of 30 cigarettes by $2.16. According to him this would raise $5 billion over four years and more importantly he feels it would encourage 87,000 people to kick the habit. This tax would pay for better health and hospitals he said. “Cigarette price increases have been shown to be effective in cutting smoking, especially among young people who are particularly sensitive to price,” he said. He announced that the anti-smoking advertising campaigns will spend $85 million over four years from now, an increase by $27.8 million. He feels, “It is one of the best investments in prevention and keeping people healthy and out of hospital that we can make.” “Cigarettes are not cool,” he added.

Retailers are unhappy with this news. Chairman of the national IGA board Mick Daly said, “It's a lazy policy response being pushed by some health advocates… That amounts to a direct attack on approximately 16 per cent of Australians who have made legal and legitimate lifestyle choices.” He also felt that this would propel the black market.