Health Bill Report Stage vote, House of Lords, 6th May 2009

This evening the House of Lords voted in favour of implementing a ban on the display of tobacco products at the point of sale.

Christopher Ogden, Chief Executive of the Tobacco Manufacturers’ Association (TMA), said:

“This ban is unnecessary and unjustified.  It is also unwanted by a significant number of politicians from all parties [1] and by the retailers whose businesses will be adversely affected to no purpose.  There is no evidence to support the government stated objective that a ban would reduce youth smoking.

“We hope that common sense will prevail and the Bill will be amended when it reaches the House of Commons.  The last thing retailers need in the midst of recession is further regulation that will facilitate illicit trade and impact adversely on thousands of small businesses and the communities they serve.”

t: 020 7544 0115  m: 07790 060041 e: zwalker@the-tma.org.uk

1. The TMA is the trade association for the following tobacco companies that operate in the UK: British American Tobacco UK Ltd (bat.com), Gallaher Ltd, a member of JTI Group (JTI.com) and Imperial Tobacco Ltd. (imperial-tobacco.com).

2. TMA supports the retention of tobacco product displays and youth access prevention

•          The TMA completely agrees with the Government that children should not smoke and should be actively discouraged from doing so.  The TMA is a principal stakeholder in CitizenCard (www.citizencard.com), the UK’s leading proof-of-age scheme [1.9m cards issued] and the No ID, No Sale (www.noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes.

•          We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.

•          Displays allow adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products on the market.

•          Tobacco is the most requested FMCG product in retail outlets, with approximately 11million smokers in the UK regularly buying tobacco products [2].

•          Concealing tobacco products from view will: make it easier for traders of smuggled product to blend it into the legal supply chain; will blur the distinction between the legal and illegal market by virtue of it being out of sight; is likely to increase counterfeiting; and, could increase the large illicit tobacco market. Up to 17% of all cigarettes and 59% of handrolling tobacco smoked in the UK already avoid duty resulting in a loss of up to £3.1 billion in tax revenue to HM Treasury [3]. The ban will hinder the pro-active work undertaken by TMA members, through their Memorandum of Understanding [4] with HM Revenue and Customs (HMRC), to assist HMRC and Trading Standards in detecting counterfeit tobacco products, as highlighted in the revised Tackling Tobacco Smuggling document [5] and which has led to a reduction of smuggling of genuine tobacco products.

3. EDM 885, ‘Display of Tobacco Products’, February 2009

That this House acknowledges the hard work of small and independent retailers; congratulates them on the vital role they play in many diverse communities across the country; recognises the ongoing economic and commercial pressures threatening their viability and survival; is concerned that the regulatory burden placed upon them should be maintained at an appropriate level; expresses its concern that proposed measures to ban the display of tobacco products in small shops are not balanced, proportionate or firmly evidence-based; calls upon the Government to further consider the effects of the measures on the viability of small shops and the market in illicit tobacco; welcomes Government action to address illegal sales of tobacco; and urges the Government to pursue the most effective and proven measures by which under-18 year olds can be deterred from smoking. http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=37964&SESSION=899

[1] EDM 885, February 2009

[2] General Household Survey plus Continuous Household Survey (Northern Ireland) 2006

[3] Measuring Indirect Tax Gaps – 2008. HMRC, November 2008

[4] Memorandum of Understanding was signed between HMRC and TMA’s member companies in 2006.

[5] Tackling Tobacco Smuggling Together Nov 2008 HMRC UKBA Chapter 1, 1.12 p2. announced in the Pre-Budget Report 24/11/08