Australian tobacco companies rally against plain packaging

Liv Casben

Last Updated: Thu, 29 Apr 2010 07:53:00 +1000

Australia's biggest tobacco companies say the government's decision to introduce plain packaging for cigarettes will only provide a boost for the black market trade.

But anti-smoking groups and health advocates have backed the move, calling it a groundbreaking policy.

In a statement, British American Tobacco Australia says it opposes the plan and is surprised the announcement has been made while a Senate inquiry into the issue is underway.

It says the move could bolster the black market tobacco industry, leading to lost tax revenue and more underage smoking.

Imperial Tobacco Australia spokeswoman Cathie Keogh says her company is now looking at its legal options.

"Introducing plain packaging just takes away the ability of a consumer to identify our brand from another brand and that's of value to us," she said.

"It really affects the value of our business as a commercial enterprise and we will fight to support protecting our international property rights."

She warns the move may actually be to the detriment of public health.

"If the tobacco products are available in the same easy-to-copy plain packaging, it makes it much easier for counterfeiters to increase the volume of illicit trade in Australia, which is currently reported at about 12 per cent of the market," she said.

"That illicit product won't have or may not have the health warnings on it. It won't be subject to ingredients reporting."

Australia would be the first country in the world to force cigarette companies to use plain packaging.

From 2012, the companies will only be allowed to print their brand name in a standard style and there will still be graphic health warnings on the packaging.

The government is also expected to announce a hike in the cigarette tax.

Health Minister Nicola Roxon says the legislation will be carefully drafted to hold up against any legal challenge.

"We have firm advice that this action can be taken," she said.

"Tobacco companies will hate the decision, but it will help people stop smoking."

"We believe this decision should have been taken a decade ago. The last government squibbed that decision but this government won't."

The Opposition's Health spokesman, Peter Dutton, will not yet say if the Coalition will support the government's plan.

Mr Dutton has attacked the timing of the announcement, calling Mr Rudd a "tricky politician".

"The government's been sitting on this recommendation for 10 months and they release it today at a time when they need a mass distraction away from the policy disasters of the ETS [emissions trading scheme] and the insulation debacle and the school halls program," he said.

"And also, strangely enough, on a Newspoll weekend as well. This is Rudd Government spin at its best."

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