Tobacco display ban - Briefing for the second reading of the Health Bill, June 8 2009

TOBACCO DISPLAY BAN- SECOND READING 8th JUNE

Introduction

The Second Reading of the Health Bill, which contains provisions to ban the display of tobacco products, will have its Second Reading in the House of Commons on Monday 8 June 2009.

The Association of Convenience Stores (ACS) and the British Retail Consortium (BRC), who jointly represent much of the affected retail industry, oppose the ban and ask you to consider the points made in this paper helpful as you prepare for the debate.

Background information

The ACS and BRC support the Government’s objective to reduce the prevalence of smoking in the UK and reduce the accessibility of tobacco products to young people. However we are concerned that the Government’s proposed ban on the display of tobacco products will not impact on youth smoking rates. We believe it is a costly measure that will place considerable burden on retailers at a time when they can least afford it. Small shops in particular will be heavily affected.

Both the Conservative Party and the Liberal Democrats health teams have signalled that they are unconvinced by the evidence that this will reduce smoking. Liberal Democrat Health Spokesman Norman Lamb MP has expressed concern that “you could end up with these proposals being completely counterproductive."

COST FOR RETAILERS

The Department of Health Regulatory Impact Assessment (RIA) concluded that the average cost would be £1000 per store.

The ACS and BRC are concerned that the actual cost will be considerably higher than this estimate. Whilst it is difficult to be accurate on costs given details on the type of ban are yet to be published, consultation with members has suggested the true cost could be anything from £1000 to over £10,000.

It is crucial that any estimate of costs takes into account not only the cost of equipment but also any installation and on-going costs retailers will have to pay while complying with this legislation. For example, any costing must take into account:

• The shipping and fitting costs for any display equipment.
• The sustainable disposal of current equipment
• The need for permanent and robust units
• The need for professional units in keeping with the type of retail outlet
• The significant cost for independent retailers or those with small chains, who will be unable to benefit from bulk purchase discounts.
We believe that even the Government’s estimate of £1000 per store is too much for retailers to pay at this difficult financial time and that such cost will prove harmful to our sector.

EVIDENCE

We fully oppose the proposed tobacco display ban; we do not believe there is a sufficiently strong evidence base to suggest it will impact youth smoking rates.

• In the original consultation the Government quoted a range of academic studies to support their position. However these studies were based in overseas markets with a totally different amount of tobacco advertising restriction than in the UK and can not be used as a comparison.

• The Cancer Research UK report by Gerald Hasting does look at the UK market. However on display this research looks at the role Point of Sales advertising in brand awareness among young people but does not strongly link this awareness to youth smoking rates.

• Indeed, the most recent evidence that the Department of Health commissioned on this subjects (Smee Effect of tobacco advertising on tobacco consumption) show that brand awareness was not a factor in influencing young people to smoke compared to social-economic situation and family background.

Even in other countries which have already implemented a display ban, there is no conclusive evidence that a display ban will impact on youth smoking rates.

Iceland

In Iceland though smoking rates has declined, this has been after a programme of tobacco control which extends far beyond prohibiting displays. Indeed academics have identified the in-depth work done at community level as the most crucial aspect in declining smoking rates rather than a display ban. Iceland has also seen the price of tobacco increased dramatically compared to the UK.

Canada

In Canada there is no link between the implementation of a ban and reduction in youth smoking. The States with the longest running bans, Saskatchewan and Manitoba, have both seen increases in youth smoking and Ontario, which has the best reductions, achieved these before bringing in a display ban.

New Zealand

The New Zealand Prime Minister John Key has recently rejected the introduction of a display ban because his Government did not find conclusive evidence that this is the most effective strategy for combating youth smoking. Instead the Government recognised that there are more effective ways to tackle youth smoking.

There is not the evidence base to justify burdening retailers with a significant cost at this difficult time. Please intervene and raise these concerns during Second Reading on the 8th June.

WIDER TOBACCO STRATEGY

The ACS and BRC are disappointed that the Government is pressing ahead with this display ban without considering the wider issues that arguably contribute more to the prevalence of smoking than seeing products in a shop. Currently, for example, it is not illegal for a young person to attempt to buy tobacco, nor is it illegal for a person over the age of 18 to buy tobacco for someone else that is underage. We believe that the Government should consider introducing these offences, which exist in relation to alcohol. These measures would help bring about the culture change that is required to prevent young people from smoking.

We also believe it is necessary for the Government to focus more on tackling the illicit trade of tobacco smuggling. Not only does this trade cost HMRC £3 million in lost revenue a year but clearly rogue traders have no regard for the law relating to underage sales.

We understand the Government will be publishing a wider strategy later this year. We believe that it would be more sensible for the Government to focus its attention on a comprehensive strategy, rather than imposing this display ban on the retail sector.

Should you have any questions on this Bill or issues contained within this briefing paper, please do not hesitate to contact either the ACS or the BRC.

Jenny Brown Alison Gardiner
Public Affairs Public Affairs
Association of Convenience Stores British Retail Consortium
01252 515001 020 7854 8936
jenny.brown@acs.org.ukAlison.gardiner@brc.org.uk

Association of Convenience Stores
ACS is the voice of over 33,000 local shops in the UK. Members trade in town centres, neighbourhoods and rural areas across the country, providing a local and convenient service and a focal point for the community.

British Retail Consortium
The British Retail Consortium is the lead trade association representing the whole range of retailers, from the large multiples and department stores through to independents, selling a wide selection of products through centre of town, out of town, rural and virtual stores.

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