Download document.

Download document.

Christopher Ogden, Chief Executive of the TMA commented:

“We are not opposed to restrictions on smoking in public places but a new survey[1] shows 64% of smokers no longer go to the pub or go less than before. Three in five smokers[2] in the UK would welcome a relaxation of the ban to offer designated smoking rooms. The results also suggest very little support for extending the smoking ban to other areas, 62% would go less often to the pub if smoking was banned in all of the pubs’ outdoor areas”.

The TMA believes there is an economic case for potential exemptions in order to achieve a more equitable approach to the issue of public place smoking.

Christopher Ogden added:

“We are recovering from recession and it is time to lift the legislative weight off struggling local businesses and their communities. The smoking ban has, contrary to claims from health organisations, severely threatened the £6 billion pub and bingo industry by negatively affecting thousands of people working in the hospitality sector who have lost sales, jobs and their livelihoods. Here is the evidence of how the smoking ban has impacted on Britain’s pubs and clubs:

- In the last year, almost 2,000 more English pubs have closed making a total loss of 4,148 since the ban in 2007 and over 10,000 jobs have been lost per year.
- The rate of closures has almost trebled since the ban (1.1% 2004-7 versus 2.8% 2007-10).
- 7.6% of pubs in England[3] and 20% of bingo halls[4] have closed in total since the ban.
- Almost 40 pubs are closing every week. [5]

“The TMA supports an amendment to the legislation that would give landlords the choice to allow separate smoking rooms in pubs and clubs and we would encourage the Government to improve the legislation by introducing this proportionate amendment. Adult smokers should have available to them places where they may smoke without inconveniencing others and any review should be balanced, proportionate and take into account the likelihood of continued negative impact on business.”

                                                                                                             Ends

For further information and/or interviews please contact the TMA media line on 020 7544 0111, or:

Zoe Walker, Manager Corporate Affairs Mob: 07790 060041 email: zwalker@the-tma.org.uk

Dirk Vennix, Director of Communications Mob: 07872 376748 email: dvennix@the-tma.org.uk

Notes to Editors:

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. The public places smoking ban was imposed in Scotland on 26th March 2006, in Wales on 2nd April 2007 and in Northern Ireland on 30th April 2007.

3. Results from the Smokers’ Panel survey showed there is very little support amongst smokers for a ban on smoking in cars where children are present. 85% of smokers do not smoke at all in cars because there are children present. The TMA believes that adults should be free to smoke in private vehicles, provided they do not light up or smoke in a way that would distract from safe driving. They should also show due consideration for other occupants and dispose of cigarette ends responsibly in ashtrays. The proposal to ban smoking in what is a private space is a step too far and an unwarranted intrusion on individual freedom.

4. Exemptions have been applied and smoking provisions have been provided in the majority of EU Member States as can be seen in a survey prepared by the Confederation of European Community Cigarette Manufacturers (CECCM), of which TMA is a member. Details are available on request.

5. Further information regarding the smoking ban is available on our new website, launched today: www.the-tma.org.uk. If you would like to get an email alert and stay in touch with the latest breaking news and media statements from the TMA, you can now register online. We have also introduced new features such as a media centre (including images and videos), the latest TMA polls, up to date industry news as well as our views on a range of policy issues, varying from the display ban to smoking in public places.

——————————————————————————–

[1] Smokers’ Panel survey conducted by Holden Pearmain in May 2010 with 1,000+ smokers.

[2] Latest figures (2008) from the Government’s General Lifestyle Survey show that 21% of the adult population (16+) in Great Britain were cigarette/hand-rolling tobacco smokers – although the report does note that this is likely to be an understatement. This equates to around 10.2 million smokers – 8.7 million in England.

[3] 11.1% in Scotland and 8.9% in Wales. The rate of decline (7%) is identical for the three countries in the ten quarters following the ban despite the different starting dates. CGA Strategy figures 2007-2010.

[4] 130 bingo halls have closed in the three years since the ban – Bingo Association figures 2010

[5] British Beer & Pub Association figures released in April 2010

Chris Ogden, Chief Executive, said:
“The TMA was conscious that in this new media age we needed to engage with a wide range of audiences through a variety of communication channels. Starting with our website, we have made it more modern and user-friendly, providing easy access to varied and detailed information. We are looking to enhance our digital offering further and welcome feedback.”

Christopher Ogden Chief Executive of the TMA commented: “It is the right of all parties, the tobacco industry included, to present their case when seeking to inform the legislative process in order to ensure that regulation is fair, effective and evidence based. However, all parties should give Ministers space to make their own policy assessments unhindered by cat calls from the sidelines”.

Mr Ogden continued: “The ASH report is riddled with inaccuracies, is highly emotive and attempts to spin the legitimate lobbying activities of tobacco manufacturers as illegitimate. This is somewhat hard to accept when set against ASH’s boast that its own lobbying activities amount to a “confidence trick [3]”.

Mr Ogden said further: “ Like any other trade association, we are always open to engage and/ or work with other organisations that share our views and concerns. It is perfectly proper for tobacco companies, retailers and wholesalers to co-operate with each other where we share similar points of view. ASH works together with groups that share its views. We have never thought to suggest that this is improper. Nor have we ever suggested that the many tobacco control lobby groups that receive funding from the pharmaceutical industry cannot be credible. This is because it is to be expected that parties that share similar views, on whatever side of a debate, will naturally co-operate in various ways”.

“We do support and work with the Tobacco Retailers Alliance but that organization operates through its executive panel of 10 retailers, who receive no payment for their work, on behalf of its 26,000 members”.

He concluded:

“The TMA continues to represent the views of its member companies [4] conscientiously and transparently. When we commission research to support our case, when we engage with or support third parties that share our views and when we brief parliamentarians or officials, we do so openly. It is quite wrong of ASH to suggest otherwise.”

Ends

For further information and to arrange an interview, please contact:
Zöe Walker, Corporate Affairs Manager Dirk Vennix, Director of Communications
t: 020 7544 0115 m: 07790 060041 t: 020 7544 0111 m: 07872 376748
e: zwalker@the-tma.org.uk e: dvennix@the-tma.org.uk

1 ASH news release: Embargo 00.01 Monday 31st May 2010
2 The smoke-filled room: How Big Tobacco influences health policy in the UK
3 Guardian 19 July 2006 Deborah Arnott and Ian Willmore: ‘Smoke and Mirrors’.
4 British American Tobacco, Gallaher Ltd (a member of the JTI Group of companies) and Imperial Tobacco Ltd

“On the 1 January 2010 the Government imposed the largest tax increase on tobacco products in ten years and now, less than 3 months later, taxes are to rise again. We question why HM Treasury would impose a 7% increase in such a short period, when latest HM Revenue & Customs figures show that up to 24% of the cigarette market, and 63% of the handrolling market still avoids UK duty, costing the Treasury as much as £11 million per day in lost revenue (1). Today’s announcement will only provide further stimulus to those who seek to profit from the illicit trade in tobacco.

”The Irish Government recognised that tax increases were driving the illicit trade in tobacco and therefore chose not to raise duties at their Budget in December 2009. The Chancellor should have followed their example.”

The TMA’s concerns are supported by research from CEBR (2), which clearly shows that the Government decision will lead to an immediate increase in smuggling and associated criminality, threatening the viability of retailers and impacting on the economy as a whole. It will also undermine the positive work that the TMA and its member companies have undertaken with HMRC to combat the smuggling of both genuine and counterfeit tobacco products.

Mr Ogden added:

“In spite of this evidence, the Government are persisting with this ill-conceived tax measure, which will delight the smugglers.”

(1) HM Revenue & Customs Measuring Tax Gaps 2009 (March 2010 – Revised)
(2) Estimating the impact of a tax increase on the legal and illicit tobacco markets, Centre for Economics and Business Research ltd, October 2009

- ENDS -

For further information,interviews and a chart showing the relationship between Budgetary tax increases and non-UK duty paid consumption, please contact:

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

Notes to Editors:

1. 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).

2. Prior to the Budget a typical pack of 20 cigarettes cost £6.13 in the UK against around £2.80 in Spain and less than £1.75 in Poland.

3. The UK has the second highest cigarette taxation in the European Union, behind the Republic of Ireland.

4. HMRC released revised figures in March 2010, which show that up to £4.0 billion in revenue was lost through smuggling and crossborder shopping in tobacco products in 2007/08.

5. Since 2000/1 HMRC estimate that up to £38 billion in revenue has been lost.

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

“The suggestion that tobacco tax be increased by 5% and the tobacco duty escalator be reintroduced is ridiculous.

” HMRC recognize that high tax exacerbates smuggling and it was only when the Government removed the tobacco duty escalator in 2001 that the situation began to stabilize. Since 2001, a policy of fiscal restraint, combined with greater enforcement has seen levels of non-UK duty paid (NUKDP) consumption gradually fall. However, the TMA estimates that up to 24% of the cigarette market and up to 62% of the handrolling market is still NUKDP, and within the NUKDP market there has been a noticeable increase in counterfeit product and the appearance of ‘cheap whites’*.

“The TMA believes that the high level of tobacco tax, the root cause of the high level of tobacco smuggling, needs to be addressed and a fundamental review of fiscal policy must be undertaken. Raising tobacco taxation above the rate of inflation is counter productive and will only increase smuggling. Evidence from the UK‘s recent history proves this point.

“When the essence of a report is based on statistics, it loses its credibility when the numbers fail to add up. The tax on a pack of cigarettes, equates to 23.3 pence per cigarette and according to the report each cigarette smoked costs the country 6.5 pence, it would seem smokers already contribute 350% more than the costs attributed to them in the report.

“This report follows Sir Liam Donaldson’s report, that puts the cost of Alcohol at £22.7bn, Obesity at £20bn, Inactivity at £10.1bn and Smoking at £7.9bn, clearly indicating a breadth of issues that need to be addressed through education. If taxation resolves public health issues, then one can ask the question whether Policy Exchange will recommend the introduction of inflationary taxes across a range of consumable products.”

* HM Revenue & Customs defines “Cheap Whites’ as brands produced by smaller, overseas manufacturers that make no legitimate supplies of any tobacco products to the UK. There is often little or no legitimate market for these brands anywhere in the world. Effectively, these products – commonly known as “Cheap Whites”– are produced for smugglers. In some cases “cheap whites” are produced in countries outside the European Union, such as Russia, and smuggled into the UK where they are illegally sold at a street price of between £2.50 – £3.00 per packet.

Download document.

“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.