Future Direction for Tobacco in the ACT 2013 2016 potential negative implications for the Convenience Industry

Jeff Rogut

The ACT Government has just released an outline for the future of tobacco in the ACT, and this has potential negative for the convenience industry.

An extract from the document is as follows:

The document proposes to:
· Reduce the number of tobacco licensees in the ACT through increases to tobacco licensing fees
· Restrict access to tobacco products through amended licence conditions

Other licensing initiatives may include:
· putting a cap on the number of tobacco licences available in the ACT;
· restricting the sale of tobacco to liquor-licensed or restricted premises where children and young people cannot enter. A ‘free kick’ to major supermarket operators of liquor stores which disadvantages small businesses.

The document does not contain any evidence or fact as to whether these proposals will have any impact on smoking consumption. Rather, the document says “Increased fees may see a reduction in the number of licensees selling tobacco products. A reduction in licences should then decrease the public’s access to tobacco” and “Conditional licensing or restricting access to licences may discourage retailers and wholesalers from selling tobacco products in the ACT.”

The proposed times for formulating policy and recommendations in relation to reducing the number of tobacco licensees in the ACT through increases to tobacco licensing fees and restricting access to tobacco products through amended licence conditions will commence in July 2013.

This document fails to take into account the consequences for the many small businesses such as convenience stores that sell tobacco – a legal product able to be responsibly sold to people aged 18 and over.

As with the federal governments push for plain packaging, (another unproven measure which has caused many operations issues for retailers, without impacting te volume of tobacco being bought by our customers), this is another assault by a government on business without consideration for the impacts, in the name of a health initiative. Tobacco purchasing in not made on impulse and adult smokers choose to buy tobacco at a time and from a place that suits them.

AACS will be making representations on behalf of our industry and I encourage retailers and others associated with our industry to make their views known to the ACT Government.