Letter to Hon Kris Faafoi

25 June 2018 Hon Kris Faafoi MP Minister of Commerce and Consumer Affairs Parliament Buildings Wellington 6140 By email: k.faafoi@ministers.govt.nz Dear Minister,

Consumer Misinformation on Smokeless alternatives to smoking 1.

We request a meeting to discuss ensuring that New Zealander consumers have the knowledge and tools to make informed financial and health choices in relation to tobacco and nicotine products.

2.

As you may know, a recent court decision means that smoke-free nicotine products, such as heated tobacco and e-liquids containing nicotine, are now legal to sell and use in New Zealand. These products produce vapour instead of smoke and have been acknowledged as significantly less harmful than continued smoking by a number of public health bodies, including Public Health England and the United Kingdom Committee on Toxicity, the German Federal Risk Institute as well as our own Ministry of Health.

3.

These products, where available, have helped millions of smokers reduce their risk of disease.

4.

Our interest in this issue relates to tax. Among our 35,000 members and subscribed supporters are smokers who know very well that smoking is harmful, but continue to smoke, and resent having to pay escalating excise tax many times the associated health costs to the Government.

5.

As explained in our report, Up in Smoke: The Social Cost of Tobacco Excise 1, tobacco excise tax is particularly regressive: it now accounts for two percent of total Government revenue and is primarily paid by low socioeconomic communities who can least afford it.

6.

We therefore see the potential move to smoke-free products as a trifactor win: an enormous tax cut for low-income New Zealanders, a public health win, and a win for consumer choice.

7.

We fear the Government’s delay in progressing these matters is driven by fiscal considerations (wishing to hold on to the revenue generated by smokers) and/or vested commercial interests (wanting to keep the status quo in the market).

1 Available at www.taxpayers.org.nz/up_in_smoke

8.

Indeed, it is quite possible our communicating to you the relative benefits of lesser known nonburn tobacco products, or us informing our membership of the same benefits, fits within the definition of ‘tobacco product advertisement’ prohibited by the Smokefree Environments Act 1990. That is obviously ridiculous.

9.

Current regulations require Smokefree products to be labelled with misleading graphic and text health warnings associated with cigarette smoking. This is wrong and inconsistent with the practices of other countries. It impedes smokers’ awareness of less harmful alternatives to smoking, perpetuates false perceptions that smoke-free products are the same as, and equally harmful as, cigarettes, and it undermines this Government’s commitment to providing New Zealanders with accurate information and the tools to make better consumer choices.

10.

That is why the Taxpayers’ Union has launched a campaign called ‘Clear the Air’ 2 — to raise awareness and call for more sensible regulation and excise regime which take account of the relative harm of the alternatives to traditional smoking.

11.

Smokefree products have the potential to serve as this Government’s single greatest contribution towards Smokefree 2025 and you, as Minister of Commerce and Consumer Affairs, play a key enabling role. If New Zealand’s smokers had accurate on smoke-free alternatives, around 5,000 lives per year could be saved from smoking related deaths. The Government has signalled a risk-proportionate regulatory approach, but we are sure you will agree that misleading consumers in the meantime is simply not acceptable. Common sense regulation should be expedited.

12.

Further, switching smokers to less harmful alternatives today would save smokers, who are disproportionately from poor communities, up to $2 billion annually in excise tax. This is consistent with the Government’s interest in alleviating the impact of tobacco excise on smokers and their families.

13.

For New Zealand’s 600,000 taxpaying smokers, of which 35% are Maori and 24% are Pacifika, your intervention is quite literally a matter of life and death. We urge you to work with the Associate Minister of Health, Minister Salesa, and identify an immediate solution to ensure that consumers are not being misled by the Government.

14.

We look forward to your response.

Yours sincerely, New Zealand Taxpayers' Union Inc.

Jordan Williams Executive Director Jordan@taxpayers.org.nz

2 Refer to www.cleartheair.nz

Direct Dial: 04 282 0301 Mobile: 021 762 542 cc Opposition Spokespeople for Health, and Commerce and Consumer Affairs.