Call for tax rise to deter smokers
24 February 2006
By KAMALA HAYMAN

Anti-smoking groups are calling for a big hike in tobacco tax as statistics indicate the Government's ban on lighting up in bars and restaurants may be failing to deter smokers. Yesterday, Statistics New Zealand released figures showing the availability of tobacco in the country rose 5.6 per cent last year – the first year following the ban on smoking in workplaces.

Statistics also show an increasing preference for loose tobacco among smokers. The statistics also show the volume of total alcohol rose last year by a modest 3%, but spirits and spirit-based drinks leapt nearly 17%. Spirits made up nearly 12% of the total alcohol market, four times the proportion seen in 1996. Beer continued to fall as a proportion of total alcohol available from 97% in 1946, 82% in 1995, to just 69% last year. The statistics were based on the volume of alcohol and tobacco available on the market, not sales or consumption. Action on Smoking and Health director Becky Freeman was surprised by the figures and called for an increase in tobacco tax to add $1.50 to every packet of cigarettes. "When Ireland enacted similar (smokefree) legislation a few months before us, in 2004, at the same time they had a tax increase and they saw huge reductions almost immediately in the amount of tobacco consumed," she said.

Freeman said for every 10% increase in price, adult smoking fell 4% and youth smoking by 15%. Smokefree Coalition director Mark Peck said the figures were perplexing. "It's worrying – at a time when we want to see prevalence dropping, it's doing the opposite," he said. Peck also backed calls for an increase in the tobacco tax. He said cigarettes had effectively become cheaper in recent years because inflation-related increases in tobacco tax had failed to keep pace with wage rises. "Price is absolutely key to getting prevalence down. Often people give up because of an event and price is a great catalyst."

Quitline manager Andrea Gilmer said the helpline was "snowed under" fielding about 1000 calls a week. "From the beginning of the year we've been hugely busy." She attributed the demand to new year's resolutions, graphic television advertising by Quitline, and to the high-profile court case of heavy smoker Janice Pou whose children were suing tobacco companies following her death from lung cancer. Gilmer, who was new to Quitline, did not know how many calls the service took last year. National health spokesman Tony Ryall said the Health Ministry would be shocked by the statistics. "It does indicate that we need to rethink New Zealand's anti-smoking campaign."

Alcohol Advisory Council chief executive Mike MacAvoy said ready-to-drink spirits had captured a large chunk of the beer market and created a particular niche market amongst young females. The overall rise in alcohol availability was not significant. "If everybody drank two drinks a day you wouldn't give a hoot but if they drank that volume all on Friday night we would." Binge drinking caused accidents, fights, domestic violence and health problems.

Associate Health Minister Damien O'Connor said an increase in tobacco consumption was disappointing. "I don't believe it is logical to link last year's rise and the smokefree legislation. Tobacco consumption also went up year-on-year in 1995, 1999 and 2001, for a variety of reasons. It is also worth noting that 2004 had the lowest tobacco consumption ever so an increase is not altogether unexpected," he said.