Tobacco plain packaging: one month for retailers to comply, zero consultation so far

October 29, 2012

With retailers soon to be forced to comply with the Government’s plain packaging regulations or face fines of up to $220,000, the fact that the legislation fails to address in any way practical business implications means it has become merely a vote grabbing crusade, according to the peak body for the convenience industry.

Executive Director of the Australasian Association of Convenience Stores (AACS), Mr Jeff Rogut, said the ill conceived legislation is unlikely to win any votes from the business community on account of the negative impacts it is already having on small retailers.

“Throughout the entire process, from concept to development and now implementation of the legislation, Government has consistently refused to consult with or listen to the concerns of small business,” Mr Rogut said.

“Retailers have been given just eight weeks to trade through tobacco stock with old packaging – a completely unrealistic expectation. Any level of Government consultation with industry would have highlighted this, but the repeated calls from our members for a more realistic timeline were universally ignored.

“Now, stores risk being left with thousands of dollars worth of obsolete stock on hand. This situation was completely avoidable had the implications on small business figured in Government’s thinking at any time.

“What’s more surprising and disappointing is Government’s repeated admissions that plain packaging will not reduce the number of people who already smoke. By Government’s own acknowledgement, the legislation was not designed for this purpose, and is instead aimed at deterring young people from taking up the habit.

This aim has been repeatedly articulated by Ministers and was echoed again by Quit Victoria executive director Fiona Sharkie as reported by The Age today.

“It begs the question, why force retailers to comply with an unrealistic timeline and attach such inappropriately large fines when the success of the legislation lies in preventing people who don’t even smoke yet from starting? It defies common sense and reveals the legislation for what it truly is – a vote grabbing campaign to appease health lobbyists,” Mr Rogut said.

The AACS has always maintained its steadfast support for Government’s health outcomes but has repeatedly pleaded for the legislation to recognise the business implications.

With December 1 the compliance date for retailers, the AACS is again pleading with Government to recognise the impacts of the legislation on small business without jeopardising the stated objectives of plain packaging.

“We are again calling for a moratorium on the prosecution of retailers for at least four months beyond the December 1 compliance date,” Mr Rogut said.

“If this legislation is not about raising revenue and is genuinely concerned with improved health outcomes, Government has no grounds to reject our proposal.

“Plain packaging legislation necessitates new inventory checking processes, security, product identification and placement, and counterfeit stock monitoring. Convenience store operators are already reporting problems with the new packaging, including difficulty in identifying products and slower service times, leading to customer dissatisfaction and inevitably, lost sales.

“The AACS has made it clear that we support responsible retailing for tobacco products. We merely want to ensure that our members are not unfairly slugged by the reform.

“What we are requesting is of absolutely no consequence to the success of the measures but is absolutely critical to the bottom line of a struggling small business sector. It beggars belief that such a simple show of support for small business not only continues to be overlooked, but fails to even elicit consideration from a Government too intent on generating positive headlines,” Mr Rogut said.