“The TMA note that the government plans to consult on plain packaging legislation next Spring. The TMA is strongly opposed to the principle
of plain packaging and expects that a balanced and transparent consultation and regulatory impact assessment will be carried out. We do
not believe any plans for plain packaging are based on any compelling evidence or sound public policy. Plain packs would likely lead to yet
further increases in the illicit trade in tobacco products by making them much easier for a counterfeiter to copy than existing branded
packs. It would become even more difficult for a consumer to differentiate between genuine and counterfeit products. If illicit trade
is to be effectively combated, the intellectual property rights of legitimate brands must be properly protected and enforced.”

- ENDS -

For further information, please contact:

Ben McArdle, Campaigns Manager
t: 020 7544 0116 m: 07712 530 436
e: bmcardle@the-tma.org.uk

“We welcome any new initiatives to crack down on the illicit trade in tobacco products, which undermines both public health policy and the legitimate industry. We have always said that these measures are an effective way to support youth access prevention and we have a proven track record of working closely with HMRC, UKBA and law enforcement agencies to combat the trade in illicit product.

“Other tobacco control measures, such as the tobacco display ban do nothing to meet public health policy objectives but will instead impose further unwarranted restrictions on legitimate businesses and private citizens alike.

“Rigorous application of proof of age requirements is a proven way of reducing youth smoking. The focus on measures that are not backed up by any credible evidence is a distraction from the need to enforce existing laws.

“It is contradictory to declare an intention to reduce illicit trade and then to favour ineffective measures, such as the display ban, that actually facilitate illicit trade.

“The Government’s dictatorial approach to tobacco control is hardly conducive to changing consumer lifestyle choices.”

- ENDS -

For further information and/or interviews please contact:

Dirk Vennix, Director of Communications t: 020 7544 0111 m: 07872 376748 e: dvennix@the-tma.org.uk
or
Zoe Walker, Corporate Affairs Manager t: 020 7544 0115 m: 07790 060041 e: zwalker@the-tma.org.uk

Notes to Editors:
The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (UK). (www.imperial-tobacco.com)
HMRC figures released at last year’s Pre Budget Report showed that in 2007/08 up to £3.7 billion in revenue was lost through smuggling and crossborder shopping in tobacco products and over the last ten years these losses exceed £45 billion.

The Memoranda of Understanding (MoU) between the TMA’s member companies and HMRC creates a comprehensive framework for co-operation aimed at combating the smuggling of both genuine and counterfeit tobacco products into the UK as well as seeking to deter all aspects of the illicit trade in tobacco products. Under the MoU there is an undertaking that both industry and HMRC will work together to identify and assess technologies that could be of benefit in tackling the trade in illicit tobacco products – the introduction of covert anti-counterfeit technology is a prime example of the benefit of the MoU approach in identifying particular concerns and quickly arriving at effective solutions.

Further information can be found on the TMA’s website – www.the-tma.org.uk.

• Prevention of those under the legal age of 18 years from accessing tobacco products;
• Retention of tobacco product displays at the point of sale in shops;
• The continuation of the sale of 10-packs of cigarettes;
• Continued use of tobacco vending machines with age-controlled access.

(The TMA’s key positions on the government’s proposals are given below in the Notes to Editors)

Chris Ogden, Director of the Tobacco Manufacturers’ Association (TMA), said:

“The TMA completely agrees with the Government that children should not smoke and should be actively discouraged from doing so. The vast majority of retailers in England are committed to upholding the law on age-related sales and we remain committed to retailer proof-of-age programmes such as ‘CitizenCard’ and ‘No ID, No Sale’ as the most effective way to stop children accessing cigarettes. We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.

“While we welcome any sensible proposals that will assist in preventing the sale of tobacco to children under the age of 18, any proposals should be supported by credible evidence that they would address the government’s stated objectives.

“We believe that any regulatory proposals on tobacco sales must strike a balance between pursuing public health policy objectives and allowing adults the freedom of choice to smoke and the right of retailers to display and sell a legal product. There is real concern from many stakeholders that some of the proposed regulations, such as display restrictions and a ban on 10s packs of cigarettes, could have serious unintended consequences, such as increasing an already large illicit market in tobacco.”

- ENDS -

Chris Ogden, TMA Director will be available for interviews on 30/31 May.

For further information please contact:

Dirk Vennix, Director of Communications
t: 020 7544 0109
m: 07872 376748
e: dvennix@the-tma.org.uk

Notes to Editors:

The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (bat.com), Gallaher Ltd (gallaher-group.com), and Imperial Tobacco Ltd. (imperial-tobacco.com).

Key TMA Positions:

1. Fully committed to youth access prevention

• The TMA is a principal stakeholder in CitizenCard (citizencard.com), the UK’s leading proof-of-age scheme [1.7m cards issued] and the No ID, No Sale (NINS: noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes. The key issue is that retailers must be able to establish the age of any potential customer before a sale is made.
• The NINS campaign has engaged more than 100,000 retailers nationwide and created a culture in which young people expect to be asked to prove their age, and in which retailers accept only the correct ID.

2. Support the retention of tobacco product displays at point of sale in shops

• Displays enable adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products.
• Point of sale display is necessary for fair and undistorted competition between manufacturers and between retailers.
• Above the counter displays are necessary as they keep products secure, speed up transaction times and reduce the need for extended verbal communication.
• Tobacco is the most requested FMCG product in retail outlets, with approximately 11million smokers in the UK regularly buying tobacco products. ^[i]
• Concealing tobacco products from view will make it easier for traders of smuggled product to blend it into the legal supply chain. The efforts of tobacco companies and HMR&C have led to a reduction of smuggling of genuine tobacco products but this proposal will is likely to increase counterfeiting and illicit trade.

3. The continuation of the sale of 10-packs of cigarettes

• 10-packs provide adult consumers with choice and are primarily purchased by adult smokers who wish to control their daily consumption.
• Within the UK, 2.5million people (20% of consumers) buy 10-packs. ^[ii]
• A ban is likely to encourage more low-income smokers to seek cheaper, smuggled 20 packs (both genuine and counterfeit) from illegal sellers who do not demand proof of age. Estimates show 27% of cigarettes and 68% of hand rolling tobacco consumed in the UK during 2007 were non-UK duty paid. Around 10% of this was counterfeit. Given the prevalence and availability of smuggled and counterfeit product in the UK ^[iii] the TMA believes that it would be particularly unwise to prohibit 10-packs.

4. Support the continued use of tobacco vending machines with age-verification access

• The TMA does not support the prohibition of vending machines, which would not only prevent legitimate access by adult smokers, but also force the closure of many small businesses with consequent job losses.
• Access to cigarette vending machines should be controlled in order to prevent sales to children and the National Association of Cigarette Machine Operators (NACMO) Code of Practice on the positioning of machines should be strictly adhered to.
• The TMA believes that vending operators and manufacturers need to identify and utilize systems that enable the purchase of tobacco products by adults only.

“We welcome the recommendations on more effective enforcement of tobacco sales and the increased emphasis on youth smoking prevention. However, we believe that there is insufficient evidence to suggest that banning displays of tobacco products at the point of sale will deter young people from taking up smoking.

“We believe that our industry should be appropriately regulated. However, any regulation must be fair, proportionate and must strike a balance between pursuing public health policy objectives and at the same time allowing adults the freedom of choice to smoke and the right of retailers to display what is a legal product.

“We agree that children should not smoke and should be discouraged from doing so. We remain committed to proof-of-age programmes as the most effective way to stop children accessing cigarettes. We actively support retailers in enforcing the new minimum legal age of 18 for the sale of tobacco by means of age verification materials like CitizenCard and No ID No Sale. Penalties for retailers who sell to young people and stronger enforcement by Trading Standards officers are more effective ways to prevent underage sales than banning display at point of sale.

“If the Scottish Parliament wishes to explore these proposals we ask that they consult and engage with the tobacco industry and the retailers – who are aware, more than anyone, of the unintended consequences many of these actions may cause.”

The TMA positions on the other SPAP proposals are given below in the Notes to Editors.

- ENDS -

For further information please contact:

Zöe Walker, Manager Corporate Affairs
t: 020 7544 0115
m: 07790 060041
e: zwalker@the-tma.org.uk

Notes to Editors:

The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (bat.com), Gallaher Ltd (gallaher-group.com), and Imperial Tobacco Ltd. (imperial-tobacco.com).

TMA Positions on each of the SPAP proposals:

• Governments that are proposing to regulate the display of tobacco products in the retail environment should ensure that they introduce measures which do not disproportionately impact on retailers, smokers and tobacco companies or have adverse unintended consequences such as increasing illicit trade.
• We do not support bans on the display of tobacco products, and will be engaging with the Scottish Parliament on their proposed regulation to restrict the display of tobacco products.
• Display of product is essential to enable adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products.
• Display is necessary for fair and undistorted competition between manufacturers and between retailers.
• Display is also essential to the efficiency of the retailing process which is increasingly dependent on speeding up transaction times and reducing the need for extended verbal communication.
• Product display at point of sale rather than elsewhere on the premises is also necessary for security and retail efficiency reasons as tobacco is high value and the most requested FMCG product with approximately 11million smokers in the UK regularly buying tobacco products.^[i]
• Concealing tobacco products from view makes it easier for traders of smuggled product to blend it into the legal supply chain and could pose further challenges to the enforcement effort against such traders.

• We do not support proposals prohibiting the sale of packs less than 20 cigarettes as it removes an important element of adult consumer choice.
• These packs are primarily purchased by adult smokers who wish to control their daily consumption.
• Within the UK, 20.1% (which equates to 2.5million people) of the cigarette market comprises 10-pack sales. ^[ii]
• A ban on small packs is likely to encourage low-income smokers to seek cheaper, smuggled 20 packs (both genuine and counterfeit) from illegal sellers who do not demand proof of age. Our estimates show 27% of cigarettes and around 70% of handrolling tobacco consumed throughout the UK in 2007 were non-UK duty paid. Around 10% of this was counterfeit. Given the prevalence and availability of smuggled and counterfeit product in the UK ^[iii] we feel that it would be particularly unwise to prohibit 10-packs.
• In Ireland, a ban on 10-packs in 2007 was aimed at reducing tobacco consumption but research has shown that the average number of cigarettes smoked per day has risen from 16 before the ban to 17 since the ban. ^[iv]

• A negative licensing system, as favoured by Westminster, entails no extra cost or administrative burden for retailers and provides a swift and effective means of tackling both first time and persistently offending retailers without creating higher costs for all parties concerned.
• The TMA is a principal stakeholder in CitizenCard (citizencard.com), the UK’s leading proof-of-age scheme and the No ID No Sale (NINS: noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes. The key issue, whatever age people can buy cigarettes, is that retailers must be able to establish the age of any potential customer before a sale is made. The NINS campaign is active in more than 100,000 retailers nationwide and has created a culture in which young people expect to be asked to prove their age, and in which retailers accept only the correct forms of ID. This is essential as there is no statutory proof of age scheme in Scotland. The vast majority of retailers in Scotland are committed to upholding the law on age-related sales. The TMA is fully committed to youth access prevention.
• A retail licensing system does little to combat the counterfeiting or smuggling of tobacco products, as such products are primarily sold through illegal channels. We are concerned that this recommendation will not prevent under-age sales by illegal vendors as those who trade in smuggled and counterfeit cigarettes have no compunction about selling to minors.

• We do not support the prohibition of vending machines, which would not only prevent legitimate access by adult smokers, but also force the closure of many small businesses with consequent job losses.
• Access to cigarette vending machines should be controlled in order to prevent sales to children and the National Association of Cigarette Machine Operators (NACMO) Code of Practice on the positioning of machines should be strictly adhered to.
• The TMA believes that vending operators and manufacturers need to identify and utilize systems that enable the purchase of tobacco products by adults only.

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

^[ii] RAL data in “Category Review 2007″

^[iii] HMRC estimate in 2005/06 NUKDP consumption lost them revenue of between £2.8 billion and £4.3 billion.

^[iv] Lansdowne Market Research: an annual sample of 14, 000 which was demographically representative of the Republic of Ireland population aged 18+.

“Opinion polls have consistently shown that the majority of people want to see more restrictions on smoking in certain types of public places but they do not want a total ban, especially in pubs. The current policy of voluntary self-regulation has allowed the hospitality industry to make real progress in providing more non-smoking facilities and better-ventilated premises in line with customers’ choice. Hospitality operators are committed to continuing these efforts and we understand they had discussed and were close to agreeing new targets with the Government.

“We believe that the Government can accommodate both smokers and non-smokers in pubs and workplaces and that ventilation and segregation or designated smoking rooms are what the majority of people want.

“We welcome John Reid’s promise of consultation over the details of his proposal in the hope that more practical and workable solutions can be achieved than those set out by the Health Secretary today.”

Notes to Editors

1. This press release is issued on behalf of the TMA’s principal member companies: Imperial Tobacco Ltd, Gallaher Ltd and British American Tobacco.

2. Environmental tobacco smoke: Health organisations and anti-smoking groups claim that people are dying every year from environmental tobacco smoke (ETS or so-called “passive smoking”) and that this is why legislation is necessary. These claims are made with a certainty that implies they are backed by conclusive evidence. They are not. The studies on which these claims are based when taken as a whole do not demonstrate a causal link between ETS and chronic diseases. The scientific evidence does not justify calls for a total ban on smoking in the workplace or other places. It is quite possible to look after the interests of staff and accommodate the preferences of smokers and non-smokers with sensible policies and a choice of designated smoking and non-smoking areas.

Mrs G. Silverman
gsilverman@the-tma.org.uk
020 7544 0108