Special tax issue 143  |  5 May 2010

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From the Director

Firstly, congratulations to everyone for so many individual parts played over years and years to achieve the schedule of tax increases passed last week. This is a special edition of the Tobacco Control Update, to celebrate our victory, a victory we can share with our government. Now that's special!

I second Ben Youdan's suggestion in his guest editorial that as many of us as possible send strong messages of support to our local MPs for their show of unanimity (well, we'll forget about those ACT members for the time being), and especially to Tariana Turia for her courageous victory.

These gestures of support go a long way on behalf of the advocates among us, who strive to develop and maintain relationships with Members of Parliament. Showing our support to government is a critical part of good advocacy.

We still have two plates spinning in the air right now: a Māori Affairs Select Committee Inquiry and a proposal to ban tobacco retail displays. Australia's just confirmed the introduction of plain packaging which throws light on that possibility here too. And don't forget the simmering debate on smokefree cars!

Take care,

Prudence Stone, Director,
Smokefree Coalition

IN THIS ISSUE:

GUEST EDITORIAL: A celebration for us all!

by Ben Youdan, Director, ASH

Last week the government passed a schedule of tobacco tax increases under extraordinary urgency in Parliament.

The increases will see the tax on roll-your-own tobacco (RYO) rise by 24 percent, and the tax on factory-made cigarettes by 10 percent immediately. These will be followed by 10 percent increases in January 2011 and 2012. The higher increase for roll-your-owns is something we have been pushing hard for as historical increases have seen smokers swap from factory-made cigarettes to save money.

As well as the obvious benefits of the increase, perhaps the most amazing achievement is that of 122 MPs, only four (from ACT) voted against the increases. Watching the debate made it really clear that the ongoing advocacy from everyone in smokefree has really paid off in generating huge Parliamentary support – in particular, the hard work people put into calling for this via the Māori Affairs Select Committee. So thanks, and well done to the whole sector!

But there's no time to sit back and relax. Let's ride this momentum and hopefully 2010 can also be the year we get rid of tobacco displays! This also sets up the Māori Affairs Select Committee to make some strong recommendations to phase out tobacco by 2020.

If you get chance, it would be great to send a note congratulating Hon Tariana Turia on getting this increase through Parliament (t.turia@ministers.govt.nz).

Today is also a good day to drop a note thanking your local MP for supporting this important health measure (all constituency MPs voted 'yes'). Contact details can be found here.

Well done everyone!

Ben Youdan, Director
ASH

From Stephanie Erick

It is Tala Pasifika's mission to support Pacific people to live healthy and free from the burden created by tobacco smoking. Our activities over the past months have seen us put a lot of effort into this and so we are very excited about this result.

We acknowledge the work and support from our colleagues in the tobacco sector in particular ASH, the Smokefree Coalition, the Heart Foundation, Te Reo Marama and Te Hotu Manawa Māori.

We congratulate Hon Tariana Turia for her leadership. We need to continue to collectively support the elimination of tobacco from our lives.

This legislation is a great step forward. It is truly an investment for the future of our Pacific health.

Stephanie Erick
Tala Pasifika Coordinator
National Pacific Tobacco Control Service

College welcomes tobacco tax increase bill

The Royal New Zealand College of General Practitioners is welcoming the introduction to the House of a Bill to increase tobacco excise tax by 10 percent with immediate effect and congratulates Minister Turia on this important work. This follows recent advice from the College and other organisations.

College President Dr Harry Pert said, "The evidence shows this will have an impact on smoking rates amongst those who spend the highest proportion of their income on tobacco. As the College's recent letter to the Prime Minister, and Ministers Turia, Ryall and English indicated, it will be vital to dedicate extra tax income from the increase to smoking cessation programmes, especially targeting low income earners, Māori and Pacific smokers, at-risk youth and patients with chronic illnesses whose health is further compromised by smoking."

GPs play a key role in supporting smoking cessation amongst their patients. A recent study shows that linking two smoking cessation approaches – a personalised advice letter from a patient's GP and a voucher for a month's nicotine gum, appeared to prompt an increase in quit attempts. Further investment in these kinds of initiatives alongside the tax increase will be the most effective way to reduce smoking rates.

GPs involved in the study – involving 831 patients from general practices in Auckland – were also very positive about the strategy. Research Team Member Marewa Glover of the School of Population Health at the University of Auckland described the research published in the Journal of Primary Health Care as "a strategy that shows promise as a simple way to increase the number of smokers making supported quit attempts through primary care."

Despite progress in tobacco control, more than one in five New Zealanders still smoke tobacco regularly, and smoking prevalence is much higher for Pacific peoples (28 percent) and Māori (44 percent).

Royal New Zealand College of General Practitioners media release, 28 April 2010

 

We see what smoking does to people

The Asthma Foundation has praised the government and congratulated Associate Minister of Health Hon Tariana Turia for facing the facts and raising taxes on cigarettes – poisonous products that play a massive role in New Zealand's appalling respiratory health statistics.

Legislation that went through Parliament last week pushed up the average cost of a pack of 25 cigarettes by $1.10 effective immediately. The government set in place a number of tax rises so that by 2012, a pack of 25s will go up by nearly $5 a pack – or 30 per cent. By then a pack of 20 cigarettes will cost more than $14 and a pack of 25s more than $17.

"This is fabulous news, despite the desperate and somewhat pathetic scaremongering by Imperial Tobacco about black markets and cigarettes becoming more attractive to thieves," says Asthma Foundation Chief Executive Jane Patterson.

"Cigarette smoke is a pernicious trigger of asthma attacks and this is enormously important when you consider that about one in four New Zealand children has asthma and one in six adults.

"Also, a large majority of the New Zealanders who live with the debilitating effects of emphysema and chronic bronchitis smoke or used to smoke.

"Something decisive needed to be done. This is a good step in the right direction.

"Hon Tariana Turia has acted as a champion for everyone concerned about the respiratory effects of smoking. We applaud her for that and recognise the government's positive approach.

"We see what smoking does to people and more needs to be done in Aotearoa to reduce the ugly effects of smoking, a dangerous habit that sucks the life out of us. A ban on retail tobacco displays as a next step would show this government is committed to a smokefree New Zealand."

Asthma Foundation media release, 30 April 2010

Pacific voice on tobacco tax increases

Tala Pasifika – the National Pacific Tobacco Control Service – congratulates Māori leadership on increasing tax on cigarettes. Pacific collectives had supported last week's tax increase to reduce early deaths from smoking. Tala Pasifika is pleased that Pacific community voices are speaking out against tobacco.

The increase in cigarette costs was passed through Parliament by Māori Party co-leader Hon Tariana Turia in a move designed to reduce the 5000 smoking related deaths each year. It was announced just before 5pm and passed all its stages 118 votes to four.

National Coordinator of Tala Pasifika Ms Stephanie Erick says, "We are very excited about this result and congratulate Hon Tariana Turia for her leadership. It is Tala Pasifika's mission to support Pacific people to live healthy and free from the burden created by tobacco smoking. Activities over the past months have seen our service, and Pacific communities themselves, put a lot of effort into raising awareness of the harmful effects of smoking and supporting the recommendation of tax increases.

"We have worked together with our Pacific communities across New Zealand including key organisations such as P.A.C.I.F.I.C.A. Women, Pacific Health and Welfare, and the Smokefree Pacific Action Network. Tala Pasifika is grateful for the many letters of support we have received from Pacific leaders of Pacific Early Childhood Centres in South Auckland and youth in East Auckland."

Research published by the Ministry of Health last year showed that around half of Pacific current smokers (52 percent) identified the cost of smoking as a factor in their decision to attempt quitting. Pacific people who had recently tried to quit were more likely to mention the cost of cigarettes as a reason for their most recent quit attempt compared to Māori, European/Other and Asian.

Heart Foundation Pacific Health Manager Louisa Ryan says, "This legislation is a great step forward and truly an investment for the future of Pacific peoples."

For help to quit smoking you can call the Quitline on 0800 778 778 or visit the Tala Pasifika website at www.talapasifika.co.nz for a list of Pacific services in your area designed to assist smokers to quit.

Tala Pasifika media release, 29 April 2010

Tobacco tax increase to spur quit attempts

The Government has announced an increase in the excise tax on tobacco for the first time in a decade. The price of a packet of cigarettes is set to rise significantly over the next 18 months.

Action on Smoking and Health (ASH) says the initial increase will see a seven percent hike in the retail price and expect that some smokers will quit in response to the tax increase.

"We will see a number of quit attempts now as well as after the tax increase," said ASH Director Ben Youdan.

"However a bigger increase would have resulted in great numbers of smokers quitting. Last year the tobacco industry discounted prices heavily by around $1 per packet, so even with this increase we are treading water in terms of tobacco affordability.

We've seen that the tobacco industry has an ability to take smaller margins and absorb tax increases, and we hope they do not exploit this opportunity to encourage quitting."

Tax on loose-leaf tobacco will increase by 14 percent in an attempt to dissuade smokers who have been switching from factory-made tobacco to roll-your-own in recent years.

The tobacco tax will increase in three stages starting on 29 April, then January 2011 and January 2012.

The upside of a staggered approach is that it will give smokers and the support systems around them the time to prepare for quit attempts on a large scale," said Mr Youdan.

ASH media release, 28 April 2010

Tobacco price increase a welcome support for Māori smoking reduction

The Public Health Association (PHA) welcomes new legislation passed last night stepping rises in tobacco excise tax over the next two years.

The PHA called for significant tax increases in its recent submission to the Māori Affairs Select Committee's inquiry into the impact of smoking on Māori, and PHA Senior Policy Analyst for Māori Public Health Keriata Stuart says the legislation is a positive step for Māori smokefree initiatives.

"We know most Māori smokers say they want to give up smoking," Ms Stuart said.

"Even though the increase will have some impact on low-income smokers, many Māori smokers support tax increases as a motivator."

The PHA says Hon Tariana Turia deserves congratulations for championing this move.

"We agree with Minister Turia's view that while the increases announced are lower than ideal, it is a good start. Continued tax increases will send a strong signal," Ms Stuart said.

The PHA also welcomes the long overdue move to harmonise taxes on loose tobacco. However, Ms Stuart says the excise tax should not just go into government coffers.

"The extra tax should be dedicated to increasing cessation services for Māori, and social marketing to further encourage quit attempts.

"It allows government to fund new initiatives without taking money from existing smokefree services.

"This is an excellent start on the journey to reduce the toll that smoking has on Māori and on New Zealand as whole."

Public Health Association media release, 29 April 2010

Quitline prepared for influx after tobacco tax increase

With the three-tiered increases on tobacco tax signalled, The Quit Group was prepared to see the number of people contacting Quitline for help to quit smoking to double or even triple.

"The last time we saw a significant taxation increase for tobacco was back in May 2000. Over night we saw our call volumes almost triple from 6000 to 16,000 calls per month," Paula Snowden, Chief Executive of The Quit Group, said.

"The tax equity between factory-made cigarettes and roll-your-own loose tobacco is the right thing to do. Smoking kills however it is inhaled and all the current price difference does is make smoking more accessible, especially for younger people and those on lower incomes," she said.

Ms Snowden said the Quit Group commends anything that encourages people to think about quitting, but recognises that any significant change always presents both challenges and opportunities.

"Around seven out of 10 smokers want to quit and many will tell you quitting is easy – staying quit is hard."

She said it takes on average six serious attempts to break the habit for good.

"For those who have tried before there is always a good day and a good reason to try again and the price rise may be just that reason.

"It is important to remember that smoking is an addiction. The Quit Group will help people with the challenge of staying quit by providing patches, gum or lozenges to help with the cravings. We'll also support people to manage the other elements of their addiction – those habitual and emotional triggers.

"We fully expect to see an increase in quit attempts, which is great, and our advisors are there to help people using the tax increases as a prompt for thinking about those other, more sustainable reasons for overcoming their addiction.

"The tax changes will certainly provide a strong incentive to discourage new smokers, particularly our youth, from taking up the habit. And, while the increases are likely to place a short-term stress on those currently addicted to nicotine, that's what The Quit Group is here for – help when it's needed.

"The good news is that those who contact Quitline are five times more likely to succeed – and that makes all the difference."

Smokefree Nurses applaud tobacco tax rise

Smokefree Nurses Aotearoa/New Zealand (SNANZ) is applauding the government's move in announcing three consecutive hikes in tobacco taxes and says it has nurses ready to help smokers quit.

"We are delighted Parliament has passed legislation to increase tobacco tax," says SNANZ director Grace Wong.

"SNANZ strongly supports this move but also recognises that smokers will now be under some financial pressure to quit and nurses around New Zealand will be on hand to help."

A Senior Lecturer in Nursing at AUT University, Wong says work from SNANZ, the Ministry of Health and the National Heart Foundation has resulted in a trained workforce of 8000 nurses that can assist smokers to quit in the wake of the hike in tobacco taxes.

More than 4500 nurses have undergone face-to-face smoking cessation training over the past five years and in the last nine months a further 3500 have undertaken the training online.

"The scope of nursing practice combined with their reach in the community means nurses are uniquely positioned to help educate and empower smokers to give up the habit," says Wong.

"If each of these trained nurses gives the 30-second, evidence-based brief advice to just one smoker a day, she can help six smokers to quit a year. This would have a dramatic impact on smoking rates in New Zealand."

"The steps involved really are as simple as nurses asking their patients whether they smoke, giving brief advice to smokers and then providing cessation support."

Currently Ministry of Health figures put the number of smoking-related deaths in New Zealand at around 5000 each year.

The Ministry of Health target is aiming for 80 percent of hospitalised smokers to be provided with advice and help to quit by July 2010; 90 percent by July 2011; and 95 percent by July 2012. A similar target for primary care will be introduced from July 2010 or earlier, through the PHO Performance Programme.

Ultimately SNANZ hopes to see the smoking cessation interventions become a standard part of nursing practice.

"The long-term goal of SNANZ is to decrease death and disease caused by smoking in New Zealand. Nurses can tip the balance to make tobacco smoking history."

Smokefree Nurses Aotearoa/New Zealand media release, 29 April 2010

Aroha for people prompts tobacco increase

The Māori Party says it is love for its people that has motivated it to push for a major increase in tobacco prices, announced in the House last week.

"It is the aroha that we have for our people that has inspired us to push for any and all moves that will reduce smoking," Māori Party MP Hone Harawira said.

"About 600 graves a year are dug too early for Māori people because of smoking, so this is about saving lives."

Mr Harawira said the increase did not lessen his attack on tobacco companies, and that he still wants to see them "strung up."

"In the long term, this will be an attack on tobacco companies because they will have less consumers, and less of our people to kill.

"Most people who smoke want to quit, so this is will hopefully give them the push they need," he said.

In response to criticism that one in three Māori who smoke might slam the increase, Mr Harawira said: "We didn't do this because we want to be popular. We did it because it is the right thing to do."

Māori Party Co-leader Hon Tariana Turia, who negotiated the increase with government as part of her ministerial health delegations, must be commended for her persistence, Mr Harawira said.

Māori Party media release, 28 April 2010

May 3-9 is Asthma Awareness Week 2010

Asthma Awareness Week 2010 is from 3-9 May inclusive and Balloon Day is Friday 7 May. To help us fight asthma – the leading reason for children being hospitalised in Aotearoa– you can call 0900 4 ASTHMA (0900 4 278 462) to automatically donate $20.

SMOKEFREE SHORTS

Where possible, links to full articles are provided below each story.

New Zealand

Tobacco price hike wins praise and big majority

A packet of 20 cigarettes is going to cost about $11 after overwhelming support in Parliament for a stiff tobacco tax increase which is being greeted with a chorus of praise from anti-smoking lobby groups.

A bill enacted under urgency on a vote of 118-4 has put in place a 10 percent increase in tobacco excise duty, which was effective at midnight. Two more 10 percent rises will follow in January and at the beginning of 2012.

When the two-year price hike cycle is complete, a packet of 20 cigarettes will cost about $14 and a 30 gram pouch of loose tobacco about $30.

TVNZ, 29 April 2010

Tobacco tax hike could spark robberies – industry

A substantial hike in cigarette prices could lead to a black market and a spike in robberies, one tobacco company says.

The claim comes as smokers are whacked with a $200 million-a-year rise in tobacco taxes as the government ratchets up the pressure on them to quit.

Dominion Post, 29 April 2010

Dairy robbery linked to tobacco tax hike

Four masked men have robbed a Palmerston North dairy at gunpoint, threatening the owners and an elderly customer.

"They don't need to rob a bank for a mere $5000 when it's easier to rob a dairy of double that amount of value in tobacco products," said tobacco spokesman Richard Green.

Stuff, 4 May 2010

Last gasp for smokes at the old prices

Smokers are buying tobacco by the carton from dairies as retailers delay raising their prices.

Broderick Dairy in Johnsonville has had people rushing in to buy cigarettes since the government announced a sudden tax rise.

The Press, 30 April 2010

Call for even higher tobacco tax

Otago University Public Health Researcher George Thomson said price increases were the strongest deterrent to smoking but they had to be substantial. Tobacco companies were constantly doing market research and have been known to wear some of the cost to avoid losing customers.

To retain poorer customers, British American Tobacco had even dropped the price last year of budget brand cigarettes Pall Mall by 50c and Freedom Limited Edition by more than $1, Dr Thomson said.

Dominion Post, 30 April 2010

Price rises a big incentive to cut down

Sixty-year-old Paul Kennedy has been smoking for half his life and never once has he considered quitting or cutting down – until this week.

He normally smokes a packet and a half a day, but following news that the cost of cigarettes will increase three times by 2012, Mr Kennedy has decided to change his habits.

"At the moment, it's costing me $16 a day," he says.

New Zealand Herald, 30 April 2010

Editorial: Lions on smoking but lambs on liquor

The Māori Party's success in persuading the government to whack smokers in the wallet is one that should be welcomed by all New Zealanders. It is a life-saver.

There is no good in cigarettes, no safe number that can be smoked. About 5000 New Zealanders die each year as a result of smoking – a bald statistic made real by Associate Health Minister Hon Tariana Turia, whose mother died of lung cancer, and who has seen every one of the cousins she was raised with by her grandmother perish from smoking-related illnesses.

Dominion Post, 30 April 2010

Smoke signals – controlling tobacco

Higher tobacco taxes here and in Australia are a first step to reducing numbers of smokers. Martin Johnston reports on how this is being received and what else could be on the cards.

You could almost believe Māori Party MP Hone Harawira when he joked that the New Zealand and Australian governments had organised a joint attack on the tobacco industry.

No sooner had New Zealand announced a three-stage increase of more than 30 percent in the tobacco excise tax than Australia came out with a one-hit 25 percent rise, plus a bold plan to strip tobacco packaging of its allure and its bright colours.

New Zealand Herald, 1 May 2010

Smokers told to give up or pay the price

A Marlborough health professional is encouraging people to give up smoking as soon as possible, with the cost of a packet of 20 cigarettes expected to cost up to $14 by 2012.

Marlborough Express, 29 April 2010

International

Cigarettes up, and plain packaging compulsory to help stub out smoking

The Rudd government has launched a twin assault on smoking by announcing steep increases in tobacco excise and laws requiring cigarettes and other tobacco products to be sold in plain packaging from 2012.

The excise increase, which will help fund the Australian government's health reforms, will be short of that required to lift the price of a packet of cigarettes to $20, as recommended by the government's Preventative Health Taskforce.

There had been speculation that the excise increase would add at least $2-$3 to a pack of 25 cigarettes.

Sydney Morning Herald, 29 April 2010

Aussie tobacco industry prepares for packaging court battle

The tobacco industry in Australia is preparing to fight the federal government in court over the move to introduce compulsory plain packaging for cigarettes.

A spokeswoman for Imperial Tobacco Australia said the company was preparing to "legally" fight the government over the proposed changes.

Otago Daily Times, 29 April 2010

QUOTABLE QUOTES

"We know that putting up the price is a powerful tool to reduce smoking. It forces people to cut back, but more importantly it provides a strong incentive for smokers to quit and helps dissuade young people from ever starting to smoke."

Hon Tariana Turia, Associate Minister of Health, "Shock tobacco tax increase",
Dominion Post, 28 April 2010

 

"Against [the costs of smoking to the country] the arguments of the tobacco industry are feeble and self-interested – and are seen as such by most New Zealanders, including smokers."

Editorial: "Lions on smoking but lambs on liquor", Dominion Post , 30 April 2010

 

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