CALLS FOR GREATER TOBACCO RESTICTIONS DANGEROUSLY MISS THE POINT

September 30 2014
With Cancer Council Victoria today citing its own survey as evidence of the need for further tobacco reform, the Australasian Association of Convenience Stores (AACS) has reinforced that tobacco is already a significantly regulated, heavily taxed and yet still legal product.
AACS CEO Jeff Rogut said calls for greater restrictions such as tobacco licenses and limits on the number of outlets permitted to sell tobacco not only unfairly shifts the cost burden of tobacco policy to retailers, these types of measures also represent a missed opportunity.
“On the one hand these draconian measures and concepts like prohibition clearly show that plain packaging has not had the desired effect, and has simply driven consumers to cheaper product alternatives,” Mr Rogut said.
“Sales of tobacco since the government tax hikes and plain packaging were introduced remain stable, although the cheaper product alternatives have enjoyed massive growth as brand identity has been eroded.
“On the other hand, these types of measure are proven to be historically ineffective and, in the case of prohibition, disastrous in the past. The illicit trade of illegal tobacco has already reached unprecedented heights in Australia, which is now viewed internationally as a thriving market for black market tobacco.
“Measures like capping the number of outlets able to sell tobacco and charging retailers a license fee plays directly into criminals’ hands.
“It should be entirely obvious by now that a reduction in smoking and improvement health outcomes is not going to be achieved by forcing retailers to jump through extra hoops to sell what remains a legal product.
“Education is the single greatest and most important opportunity the health lobby has to make a positive impact on smoking and taxpayers deserve a more genuine, concerted and strategic effort from the various health bodies on this score.
“Relentlessly shifting the burden to retailers has not had an effect on smoking rates. All it has done is force retailers to absorb additional costs in running their businesses,” Mr Rogut said. Tobacco accounts for around 36% of sales of a typical convenience store – many of these are small businesses who operate as franchisees or licensees. Ill conceived ideas from organisations not well versed in broader economic issues could put the viability of thousands of businesses at risk.
The AACS is not an arm of, nor does it lobby on behalf of, the tobacco industry. It is the peak body for the convenience industry in Australia, representing the interests of some 6,000 stores.