Nick Xenophon urges floor price on cigarettes to ‘outsmart’ tobacco giant

9 June 2014
theguardian.com
Independent senator calls for minimum price of $20 for 25-pack of cigarettes as British American Tobacco launches pack for $13
Australian Associated Press
Independent senator Nick Xenophon is pushing for a minimum floor price on cigarettes to counter a tobacco giant’s “cynical” move to sell discounted packets.
British American Tobacco Australia has launched what it claims is the cheapest legal packet of cigarettes on the market at $13 for a 25-pack.
It is blaming federal government policy for the move, saying it’s simply seeking to remain competitive as sales of cut-price cigarettes soar.
Xenophon has accused the tobacco giant of circumventing laws to discourage people from smoking.
He plans to introduce a resolution in the upper house next week to seek a minimum floor price for all cigarettes sold in Australia.
“We need to outsmart big tobacco in terms of what they’ve done with this price-discounting and loss-leading campaign,” he told ABC TV on Monday.
Xenophon will consult with public health experts on the most effective disincentive price but wants to see a minimum of $20 for a 25-pack.
It was the best option to combat a “deeply cynical” campaign aimed at boosting the ranks of younger smokers, he said.
Xenophon also dismissed “exaggerated” industry claims that plain packaging laws and large excises were driving up black market sales.