36 Winchester St
Lyttelton, Christchurch
New Zealand 8082
Ph: +64 3 3288 688
Cell: 027 488 4375
Skype: murraylaugesen
www.healthnz.co.nz / / Health NEW ZEALAND Ltd
Nicotine and tobacco researchers
Dr Murray Laugesen
QSO, MBChB, FNZCPHM, FRCS, Dip Obst
Managing Director

2 October 2012

To: Plain Packaging Consultation

Tobacco control programme, Ministry of Health

PO Box 5013 Wellington 6145

Submission on proposal to introduce plain packaging

of tobacco products in Aotearoa New Zealand

NO I do not have any direct or indirect links to the tobacco industry.

Research on tobacco products and nicotine products have been the focus of my consultancy company Health New Zealand Ltd these past 10 years.

YES I give permission for my personal details to be released under the Official Information Act 1982.

This submission completed by / Dr Murray Laugesen
Address: (street/box number) / 36 Winchester St
(town/city) / Lyttelton 8082
Email: /
Organisation (if applicable): / Health New Zealand Ltd
Position (if applicable): / Owner, public health medical specialist, tobacco and nicotine products researcher

Are you submitting this as:

(Tick one box only in this section)

1.  Overall do you support or oppose the proposal to introduce plain packaging of tobacco products in New Zealand, as outlined in this consultation document?

YES

2.  Do you agree that plain packaging of tobacco products has the potential to:

·  Reduce the appeal of tobacco products?

·  Increase the effectiveness of health warnings on tobacco packaging?

·  Reduce the ability of tobacco packaging to mislead consumers about the harmful effects of smoking?

·  Influence the attitudes and behaviours of children and young people?

YES

In 1990 while working as Principal Medical Officer on the tobacco desk in the Department of Health in Wellington I arranged for what may have been the first plain packs research, which was conducted by the Marketing Department of the University of Otago. The research by Beede et al and later published strongly endorsed the statements in this question 2. The plain packs concept was not proceeded with at that time simply because there was insufficient time to sort out the legal complexities of such a new policy.

3.  Do you agree that plain packaging of tobacco products would help to:

·  Discourage young people from taking up smoking?

·  Encourage people to give up smoking?

·  Help stop people who have quit smoking from relapse?

·  Contribute to a reduction in smoking prevalence in New Zealand and reduce people’s exposure to second-hand smoke?

YES

4.  If New Zealand does go ahead with plain packaging, is there any reason why a significantly different scheme might be necessary or desirable for New Zealand, compared to the scheme that has been introduced in Australia?

NO

Health New Zealand Ltd welcomes the expansion of coverage of health warnings on the front of packs from 30% to 75%, in keeping with the Australian legislation.

5.  If adopted, do you think plain packaging of tobacco products might have any unintended or undesirable consequences, such as:

·  Unacceptable implications for consumers (eg limitations on consumer choice)?

NO

6.  Are you concerned that a plain packaging regime might lead to an increase in illicit tobacco trade and related ‘black market’ criminal activity?

NO

7.  Do you have any comments to make on any aspect of the Regulatory Impact Statement that forms part of this consultation?

YES

The estimated costs of defending legal action could total up to $8 million according to the RIS, but government has sovereign powers and scope for price capping and price regulation of the tobacco manufacturers, and recovering the difference through increased excise, totaling $83 million annually. Even a hint of such action could be helpful in avoiding time-wasting delays in implementing this legislation.

Currently the three leading manufacturers between them continue a tradition of selling cigarettes which kill thousands of New Zealanders annually on the way to earning an industry-wide EBIT (earnings before interest and tax) for 2011 of 46% per cigarette (Financial statements of the companies, Companies Office website August 2012). There is scope for price regulation and price capping. (End Smoking submission 20 July on the 2012 Excise Bill). (Excise is passed on to smokers to pay).

8.  Do you have any other comments on plain packaging of tobacco products that you would like to be taken into account?

I have followed this issue with interest for the past 22 years, since commissioning from the Department of Health, one of the first research studies of the impact of plain packaging in 1989-90.

I have read the Cabinet minutes and the recent research, which make a coherent case for action in the public interest, even though it has not been done before. I have read the Regulatory Impact Statement. the arguments are strong, and the action is justified, on the grounds of stopping glamourisation of the pack, whether or not sales can be shown to reduce after standardisation of the packs. Deglamorisation of the pack is likely to reduce adolescent uptake of smoking. I fully approve of New Zealand introducing plain (standardized) tobacco packaging.

Unprecedented industry argument against standardized packs may be due to anticipated loss of profit consequent on perceived lack of difference between premium and low priced brands, rather than to fear of loss of total industry sales to adults.

The arguments of Philip Morris in their letter about the purported risks of an illicit market serve to divert attention from the effects of the current legal market selling 3 billion cigarettes a year using glamorous packs of tobacco cigarettes. The current legal market continues to account for one in six funerals in this country. It is 50 years this year since the Royal College of Physicians London’s first report against smoking as a cause of lung cancer. It is high time to deglamourise the cigarette packaging with a law on standard plain packs.

Associate Health Minister Tariana Turia and her officials are to be congratulated, and her Government for fully supporting this move.

Murray Laugesen QSO, WHO tobacco or health medal, FRCS FNZCPHM