Pot, kettle, black. APPG accuses tobacco industry of "propaganda" on illicit trade

Who could have predicted that?

A few months ago the All Party Parliamentary Group on Smoking and Health conducted an 'inquiry' into tackling the illicit trade in tobacco products.

The issue is important because – in the view of the tobacco industry and many other experts – plain packaging could increase illicit trade.

The APPG invited a number of people to give evidence, including leading tobacco control campaigners Luk Joossens and Professor Anna Gilmore.

The Tobacco Manufacturers Association was invited to give oral evidence but declined because the companies were concerned about the APPG's close links to ASH, which effectively runs this taxpayer-funded group.

Instead the TMA submitted written evidence.

Today the APPG is publishing a report of the self-styled 'inquiry' and I have no doubt that it will be entirely impartial. [Wink!]

Or perhaps not. According to the press release:

Despite repeated claims from the tobacco industry, the level of tobacco smuggling and illicit trade in the UK is falling, according to a new report from the All Party Parliamentary Group on Smoking and Health.

Public spending on action against the illicit tobacco trade is highly cost effective, saving as much as £10 in tax for every £1 spent. And the introduction of standardised (”plain”) packaging for cigarettes and other tobacco products would make little or no difference to this trend.

Stephen Williams MP (Liberal Democrat, Bristol West), Chair of the APPG said:

“The UK has a good record in recent years in tackling the illicit tobacco trade, although it remains a serious challenge. Enforcement agencies are increasingly effective in co-ordinating their actions, regional partnerships around the UK have done excellent work, and the UK Government quite rightly made specific provision for HMRC to fight illicit trade in the last public spending round.

“Contrary to tobacco industry propaganda there is no good reason to think that standardised packs will increase illicit trade. The tobacco industry knows that standard packs will cut the number of children pulled into this lethal addiction – that’s why they are running an expensive and mendacious campaign to try to scare the Government off.”

Yadda yadda, as Michael Gove might say.

In response the tobacco companies have issued this statement:

“The TMA was offered the opportunity to provide oral evidence to the APPG Inquiry but declined and elected to provide a written submission because we knew that we would not be given a fair hearing on the extremely important issue of the illicit tobacco market. Regrettably, the press release that supports the ASH led inquiry proves this very point.”

“We would agree with MP Stephen Williams that a broad alliance of HMRC and Border agency to deal with the illicit trade in tobacco is important but he of course omits to mention the international efforts of the tobacco industry itself in providing the intelligence and support to assist the authorities in dealing with this issue.

“The reality is that those who consider this issue objectively will recognise that a high tax policy drives smuggling and cross-border shopping. HMRC data is only available to 2010/11, whereas more up-to-date information shows that the level of cigarettes consumed that are not UK tax paid has risen from 17% in 2011 to 21% in 2012. Additionally the impact on Government revenues is clear for all to see. Figures released by the Office for Budget Responsibility this week show a revised forecast for tobacco duty revenue in 2012/13, down by £200 million. This is evidence, not propaganda.

“Over 500,000 people have come out against the proposals to introduce plain packaging. The relationship between standardised packaging and the ease by which they could be counterfeited is an issue which has been raised by MPs, packaging suppliers, retailers, wholesalers, the police and enforcement agencies - not just the industry. Perhaps Mr Williams should speak to the 75 MPs who have signed a letter to express their concern instead of simply listening to those who want to close down any debate about this important issue which will have a serious and detrimental impact on many businesses large and small.”

I'll leave you to draw your own conclusions about the merits of the APPG's 'Inquiry into the illicit trade of tobacco products'.

Meanwhile, pop over to the Hands Off Our Packs blog where Angela Harbutt has this to say: A sad and sorry pantomime – APPG charade is a pitiful attempt to influence ministers on plain packs.