Tobacco display ban passes through the Lords

Peers voted by 204 to 110, majority 94, against the Tory ammendment to the Health Bill on Tuesday that would have removed the clause banning tobacco displays.. 

Under proposals contained in the Bill, from 2013 shops in England, Wales and Northern Ireland will be prevented from displaying tobacco product.

Baroness Thornton, for the Government, described the measure as "another important step to a tobacco-free world and one where children are protected and people who want to give it up are supported".

Earl Howe, for the conservatives, said that research from the Government showing the ban would deter young people from taking up smoking was "shot through with weaknesses and leaps of logic".

He told peers: "There are about 50,000 corner shops in the UK. The organisations representing these corner shops have told me of their acute worry that a point-of-sale ban on the display of tobacco will do serious harm to their trade. The level of concern is very, very high."

Baroness Thornton said Britain had the lowest smoking rate on record, citing the bans on advertising and smoking in enclosed public places as contributing factors.

"These great reforms were brought in the face of hostility, scepticism and misinformation and this is what we are asking you to do again," she said.

Two thirds of smokers started before they were 18, she said, and "we don't want cigarettes in our corner shops alongside the sweets, magazines, soft drinks and newspapers".

"We have a responsibility also to do everything possible to support people who want to stop smoking and we are satisfied there are benefits for them from removing displays."

Lady Thornton attacked the tobacco industry for "attempting to panic shops" over the Bill's provisions adding: "I say shame on the tobacco industry for unnecessarily panicking decent honest shop keepers who serve their communities well."

She added: "We are not in the business of frightening shopkeepers and we are going to give them a great deal of time to allow these measures to be enforced.

"We will not force tobacco under the counter - there is nothing here that does that."

Editorial Note: After third reading, which is a formality the Bill will move to the Commons. On vending machines the amendment to require immediate prohibition of all sale of tobacco from vending machines was lost by 48 votes (86 in favour 134 against). However it is possible that an amendment may be tabled again in the commons. 

Source: The Telegraph, 06 May 2009
Link: http://tinyurl.com/coltds

BAT reports fall in premium brand growth

Global demand for premium cigarettes appeared to be showing its first sign of weakness after British American Tobacco reported a slowdown in sales growth for some of its top brands in the first quarter of the year.

For the three months to the end of March BAT said sales of its higher-priced brands, which include Kent, Dunhill and Lucky Strike, were “slightly ahead” of the same period last year.

However, within this, volume growth of Kent, BAT’s largest brand, slowed to 3 per cent, compared with the 30 per cent rise seen in 2008.

In a sign that smokers in some markets are trading down to cheaper brands or turning to illicitly traded cigarettes as the recession bites, volume growth of Lucky Strike also fell, from 16 per cent last year to 4 per cent, while sales growth of Pall Mall slowed from 30 per cent to 11 per cent.

Only Dunhill managed to maintain the same rate of sales growth at 8 per cent.

Paul Adams, Chief Executive said, “Up until last year, the premium segment for the industry globally was increasing.  What we are beginning to see now is a significant deceleration in the growth of the premium segment, particularly in central and eastern Europe.”

Mr Adams said the company could see some continuation of the deceleration, or even a reduction in the growth of the premium cigarette sales, especially in markets where unemployment will rise significantly.

However, he was careful to stress that any weaknesses in premium brand volumes were being offset by price increases – a view shared by many analysts.

“BAT’s brief interim management statement confirms overall strong industry pricing, a much more important driver of net revenue than volumes, in our view,” said Eileen Khoo, an analyst at Morgan Stanley.

Others said big tobacco companies, following the unprecedented consolidation in recent years, are even better positioned to weather a downturn now because they are more geographically diversified and they sell at a wider range of price points.

Shares in BAT, down 15 per cent over the past year, rose 57p to £16.40.

Source: The Financial Times, 07 May 2009
Link: http://tinyurl.com/d5ef79

New Zealand: ASH NZ calls for cigarettes to be excluded from FTAs

An anti-smoking group is calling for tobacco to be excluded from free trade agreements (FTAs).

Former Labour MP Mark Peck, now spokesman for Action on Smoking and Health (ASH), told the Parliament defence and trade committee, considering the Asean-Australia-New Zealand Free Trade Area Bill, that tobacco was a dangerous product and should be excluded.

"Tobacco no longer can be considered as a normal product, it is not a normal product and should be considered along the same lines as any of the other deadly and dangerous products that trade rules can and do prohibit," he said.

He accepted the bill could not change the agreement but said its commentary could be used to raise the issue.

ASH was concerned that, by including tobacco in FTAs, exporting countries could later use trade rules to complain, for instance, against high taxes on tobacco.

"We wouldn't want to be in a position where at some point in the future the tobacco industry could say we actually think New Zealand has got some instruments which are an impediment to trade and hold us to account in other forum."

It is a danger that we see not just for New Zealand but other jurisdictions as well."

Labour MP Pete Hodgson said the committee had sought officials' advice on the idea.

"This agreement when examined is not actually going to do the health of New Zealanders any great harm," he said.

Mr Hodgson said the committee accepted tobacco caused harm. Harmful products, for example munitions, were normally governed by international framework agreements.

The question was about whether progress should be promoted through the World Health Organisation convention on tobacco control or ordinary FTAs.

The danger with changing FTAs is that New Zealand could end up banning the import of tobacco.
 

Source: The New Zealand Herald, 07 May 2009
Link: http://tinyurl.com/dbnhfg

Children buying cigarettes from vending machines

Child smokers are able to buy cigarettes from vending machines across Northumberland without being challenged, it has been revealed.

Test purchases across the region have shown children as young as 11 can easily buy cigarettes from the machines.

The tests were carried out by Trading Standards officers using a range of volunteer purchasers aged from 11 to 16 who went into bars and pubs, amusement arcades, bowling alleys and other outlets.

In 58 out of 99 cases across the north east the children were able to buy cigarettes from machines unchallenged.

In Northumberland all ten text purchases were successful – the highest number in the region.

On some occastions staff even helped when they were having difficulty getting the money to stay in the slot, and one 15-year-old was given change by staff to make sure he could buy from the machine.

The majority of failures were as a result of faulty coins or machines rather than being stopped by staff.

Even the 11-year-old test purchaser was only turned away twice in 14 attempts.

Out of 99 attempts, 58 were successful, 13 failed due to the machine being faulty or switched off, 21 for other reasons, and just seven clear refusals due to staff supervision.

The North East Trading Standards Association has recently called for cigarette vending machines to be banned and undertook this work to show just how easy it is for children to buy this dangerous product, even though the legal age of sale for tobacco in the UK is now 18.

Richard Ferry of the association said: "We have always thought that these machines are a menace and this massive regional study shows that it really is time to ban these machines.

"Vending machines are expensive but remain a significant source of cigarettes for young people, which is why we carry out regular checks like these.

"We must reduce the availability of a dangerous product to youngsters and banning vending machines would have a big impact.

"It seems that too often, the staff aren't taking any notice of the advice and training we give them or the industry code of practise that says they should be able to supervise the machines.

"We will always aim to work with premises to inform and educate as first steps, but will prosecute in persistent cases where warnings are ignored.

"In many cases the machines were out of sight of the staff who were supposed to be supervising their use and the children could walk up unchallenged."

Source: News Post leader, 07 May 2009
Link: http://tinyurl.com/cbyveq