Tobacco Plain Packaging in Australia

Dr Anthony MillgateActing Assistant SecretaryTobacco Control Taskforce

Department of Health

Slide 1

Outline Implementation of tobacco plain packaging

measure Challenges Evidence in support continues to grow Recent media and claims being made by industry What the official figures indicate

Slide 2

Introduction of Tobacco Plain Packaging In April 2008, the Council of Australian Governments (COAG)

committed to: Reducing the national daily smoking rate to 10% by 2018; Halving the smoking rate among Aboriginal and Torres

Strait Islander people from 47%. In 2009, the National Preventative Health Taskforce was

established to examine evidence on tobacco, alcohol and obesity.

Slide 3

Introduction of Tobacco Plain Packaging (cont’d)

• Extensive evidence to June 2009 in support of tobacco plain packaging. • Set out in reports of the National Preventative Health Taskforce.

• 29 April 2010, in response to the recommendations of the National Preventative Health Taskforce, the Australian Government announced the Anti-smoking Action Package.

• Since 2009 the evidence base has continued to grow.• Additional studies referenced in the April 2011 consultation paper

on the draft tobacco plain packaging legislation.• Review of the evidence by Cancer Council Victoria in May 2011

cited 24 studies in the peer-reviewed literature.

Anti-Smoking Action Package Announced by Australian Government in April 2010, and included:

world first tobacco plain packaging legislation; updated and expanded graphic health warnings; 25% increase in tobacco excise; substantial investment in anti-smoking social marketing campaigns; legislation to restrict internet advertising of tobacco products in

Australia; extended listing of nicotine replacement therapies and other smoking

cessation supports on Pharmaceutical Benefits Scheme; and record investments (about $100 million) in support for Aboriginal and

Torres Strait Islander communities to reduce smoking rates.

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Established tobacco regime in AustraliaThese measures come on top of an established tobacco control regime. Minimum age restrictions on the purchase and supply of tobacco

products; comprehensive bans on tobacco advertising and promotion; retail display bans; bans on smoking in a range of indoor and outdoor public spaces, and

increasingly outdoor places where children may be exposed to environmental tobacco smoke;

extensive and continuing public education campaigns; PBS subsidies for smoking cessation supports; and Quitlines and other smoking cessation support services in each State

and Territory.

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More Recent Measures More recently, other significant measures have been introduced:

reduction in the duty free allowance for tobacco products from 250 cigarettes or 250g of cigars or tobacco products, to 50 cigarettes or 50g of cigars or tobacco products per person, from 1 September 2012;

stronger penalties for tobacco smuggling offences; 1 December 2013 – 12.5% excise increase with further three

12.5% increases on 1 September 2014, 2015, 2016; and National Tobacco Strategy 2012-2018 endorsed by the

federal, state and territory health ministers: available at www.nationaldrugstrategy.gov.au

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Tobacco Plain Packaging Commencement

All products manufactured or packaged in Australia for domestic consumption were required to be in plain packaging.

All tobacco products were required to be sold in plain packaging with new and expanded graphic health warnings.

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Tobacco Plain Packaging ObjectivesReduce the attractiveness and appeal of tobacco

products;increase the noticeability and effectiveness of

health warnings;reduce the ability of packaging to mislead consumers

about harmful effects; andthrough the achievement of these aims in the long

term, as part of a comprehensive suite of tobacco controlmeasures, contribute to efforts to reduce smoking

rates.

Slide 8

Development of Tobacco Plain Packaging Legislation

Close collaboration between Government agencies Formal public consultation processes and targeted

consultation with retailers and tobacco industry Consultation with the industry was done in accordance

with the requirements of FCTC Article 5.3 Two Parliamentary Inquiries (House of Representatives

and Senate) into the draft legislation in 2011 Some changes made to draft legislation following

consultation processes

Slide 9

Tobacco plain packaging

Slide 10

Tobacco plain packaging design

Slide 11

Slide 12

Cigarillo tin

Cigar tube

Loose leaf tobacco pouch

Plain Packaging of Non-Cigarette Tobacco Products

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Updated and Expanded Graphic Health Warnings Graphic health warnings on tobacco products updated and

expanded in Competition and Consumer (Tobacco) Information Standard 2011.

Took full effect from 1 December 2012. Size of graphic health warnings increased to 75% of front of pack

for cigarettes and cartons, up from 30%, with 90% warnings for the back of packs retained

Size of graphic health warnings for most other smoked tobacco products increased to 75% of both front and back of the pack

Rotated in 2 sets of 7 warnings every 12 months.

Slide 14

Tobacco industry tactics/disputes

Tobacco industry undertook a number of actions to oppose tobacco plain packaging.• Large scale campaigns against the measure• TV, radio and print advertising, social media, cards inserted into

cigarette packs, and thousands of postcards sent to MPs• Large numbers of FOI requests for documents relating to

tobacco control, plain packaging and graphic health warnings• Alliance of Australian Retailers - funded by tobacco companies

specifically to lobby against tobacco plain packaging during 2010 Federal election.

Slide 15

Tobacco Plain Packaging Compliance and Enforcement

The Department of Health has responsibility for enforcing the tobacco plain packaging legislation.

Maximum penalty is AUD$340,000 for an individual and AUD$1.7 million for a company.

Inspections require a reasonable suspicion that there has been a breach of the Tobacco Plain Packaging Act 2011.

Reliant on complaints and information provided to the Department. Enforcement Committee provides direction and considers

outcomes in relation to complaints. National Measurement Institute (NMI) undertakes educational,

compliance and enforcement activities on Department’s behalf.

Slide 16

Communications activities

Extensive communications activities occurred in late 2012. Information Kit sent to retailers and other suppliers. Newspaper and online advertising. Reminder letter sent to retailers in November 2012. Letters to importers and distributors of

non-standard tobacco products in early 2013. Letter and FAQ document on shisha/molasses tobacco sent

to suppliers in March 2014.

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Compliance and Enforcement Statistics Relatively small number of complaints received to date. A combined total of over 3,400 educational visits to tobacco

suppliers were undertaken in 2012-13 and 2013-14.• A proactive way to educate suppliers on their obligations

under the legislation.

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Claims made by the tobacco industry in opposing implementation of tobacco plain packaging

The tobacco industry claimed that the implementation of tobacco plain packaging would:

• increase retail transaction times for tobacco product purchases

• severely impact retailers and small business• increase illicit tobacco • have no impact on smoking prevalence

Slide 19

Industry Commissioned Reports and Research on Tobacco Plain Packaging

Tobacco industry continues to commission flawed reports and research. Key examples include: London Economics report, commissioned by

Philip Morris International University of Zurich reports, also funded by Philip Morris

International KPMG report on illicit trade in Australia

Slide 20

Recent Research on Tobacco Plain Packaging

Recent studies published in 2013 and 2014 indicate that the measure is having an effect: Plain packs with larger health warnings increased

smokers’ urgency to quit and lowered appeal of smoking Decline in active smoking rates and personal pack

display (packs clearly visible on tables) among patrons in outdoor venues, post-implementation

a 78% increase in the number of calls to the Quitline in two jurisdictions, associated with the introduction of tobacco plain packaging

Slide 21

Recent Media Reports on Industry Claims

Recent media has claimed: • that tobacco industry sales data shows that since plain

packaging was introduced, tobacco sales volumes increased by 0.3%

• that tobacco industry sales data show that from 2008 to 2012, smoking incidence was declining at an average rate of 3.3% per year and that since plain packaging was introduced, that decline rate slowed to 1.4%.

Slide 22

Reports Contradicted by Official Figures

ABS data shows total consumption of tobacco and cigarettes in the March quarter 2014 is the lowest ever recorded.

Tobacco clearances (including excise and customs duty) fell by 3.4% in 2013 relative to 2012 when tobacco plain packaging was introduced.

Latest data from 2013 NDSHS: smoking prevalence among those aged 14+ has fallen from 15.1% in 2010 to 12.8% in 2013.

These results highlight importance of our comprehensive tobacco control measures.

Slide 23

Legal Challenges to Tobacco Plain Packaging

Constitutional challenges in the High Court of Australia – legislation found not to breach Constitution Decision handed down in August 2012

Current international legal challenges: Investor-State arbitration brought by Philip Morris Asia under

the Bilateral Investment Treaty between Australia and Hong Kong; and

World Trade Organization disputes.

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Questions

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