PRA DEEPLY CONCERNED BY NEW EVIDENCE ON THE NEGATIVE IMPACT OF PLAIN PACKAGING IN AUSTRALIA

01/10/2013
RMI

The Petrol Retailers’ Association (PRA) today expressed their concern at further evidence from Australia of the negative impact of plain packaging on retailers:

Brian Madderson, Chairman of the PRA said “Our members have had long held concerns about the unintended consequences of this proposal. This latest report – which supports earlier research from Australia – simply confirms the fears of our members; that their businesses would suffer as a result of illicit trade, lost revenue and increased service times were plain packaging to be introduced anywhere in the UK.”

“This further evidence only serves to underline our message to Government, both in Westminster and Holyrood; that the policy of plain packaging should be based on evidence and nothing else. Whilst we wholeheartedly agree with the Government’s aim of reducing youth smoking rates, there is no credible evidence to show that plain packaging would achieve this result.

“However, as today’s report confirms, there is strong, and growing, evidence from Australia that such a policy would negatively impact the businesses of our members, our economy and boost the illicit tobacco trade. We urge the Scottish Government to follow the same approach as the Government and wait for the evidence. To seek to plough ahead with this policy will seriously threaten economic growth, jobs and businesses in our sector.”

New independent research – The Impact of Plain Packaging on Australia Small Retailers – released by the Australasian Association of Convenience Stores nine months after the introduction of plain packaging in Australia, has shown that there is no evidence to suggest smoking rates have gone down as a result of Australia’s plain packaging law.

Instead, the nationwide survey of small retailers in the country reveals retailers continue to be burdened by additional staffing costs and service issues, as well as an increase in the illicit tobacco trade.

The report carried out by Roy Morgan and commissioned by Philip Morris shows:

· Two-thirds of small retailers claim plain packaging has negatively impacted their business.

· 78% experienced an increase in the time taken to serve adult smoker customers and 62% report additional time is spent communicating with these customers about tobacco products.

· 62% of small retailers have faced increased frustration from adult smoker customers and 65% have seen an increase in the frequency of staff giving the wrong products to customers (primarily due to difficulty in recognising/distinguishing between brands).

· 34% of retailers have experienced increased frequency of attempted product returns predominantly due to customers being given a product they did not ask for.

Notes for editors:

Rupal Rawal, Communications Assistant
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk Email: rupal.rawal@rmif.co.uk

Brian Madderson, Chairman, Petrol Retailers Association, Retail Motor Industry Federation

The Petrol Retailers Association represents some 5,500 independent forecourts which is 60% of the total UK marker. A trade association committed to helping members run their businesses legally and profitably adapting to new challenges in the market place. A survey of Members to assess their reaction to the plain packaging proposals was undertaken by Populus in autumn 2012 to better inform the Government consultation.

· Two-thirds (65%) of PRA Retailers believe that if the Government decided to proceed forward with plain packaging that it would have a negative impact on their business.

· This increases to 71% among those that say direct tobacco sales are important to their bottom line and to 73% among those that say indirect tobacco sales are important to their bottom line.

The retail sector makes a key contribution to the British economy. PRA represent 5,500 small, independent retailers, supporting jobs in communities across the United Kingdom. Tough economic times and wave after wave of new regulation is making life tough. Another 175 forecourts closed across the UK last year alone and 6,000 have closed since 1998

A recent report from the Centre for Economic and Business Research estimates that implementing a policy of standardised packaging within Scotland would:

· Cost small, independent retailers 3,200 jobs

· Lead to the closure of 700 stores

· Result in the loss of £30 million in earnings to small retailers