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Alex Wodak's avatar

In this commentary, Alan Gor compares two recent articles in ‘Pearls and Irritations’, an earlier comment by Emeritus Professor Simon Chapman AO, and an article by me published today. Simon and a number of his colleagues have been vigorously campaigning for decades for just the sorts of policies Australia has adopted for smoking and vaping. Simon supported Australia banning Swedish snus in 2006. Twenty years later, Sweden has an adult daily smoking rate of 3.7%, the lowest of any high income country in the world, and the lowest lung cancer rate in the European Union, which banned snus in all EU countries except for Sweden. In his submission to the current Senate Inquiry, Simon claimed high cigarette excise wasn’t the cause of Australia’s booming cigarette black market and reducing excise isn’t the solution. Please read Simon’s Senate submission and his recent article in ‘Pearls and Irritations’. Then read my article in ‘Pearls and Irritations’ and Alan’s comparison.

Dragan Miletic's avatar

I have read both articles.

In my opinion, Simon is holding on to this arbitrary year of 2020 thrown out into the public. Like we must drop the excise to this level. No, we do not. The government can go as low as needed to be at par with the illegal market cigarettes. $15 would be a reasonable starting point.

All the defenders of the status quo and "go hard on the intruders of the government monopoly" always mention SA with their licensing system and QLD with their closure of the shops.

A simple proof of how successful these measures are would be "a rise in the price of black market cigarettes," but from what I know the prices of illegal tobacco and vapes are the same as in the rest of the country. Hm, you do not need a licence to sell illegal drugs. And you can sell illegal stuff under the counter of a shoe shop.

Simon also does not mention vapes at all.

Since Simon is following global trends, he should be aware that a flood of black market cigarettes and vapes have swept the whole western world. To be more precise, all the countries where Bloomberg's Philanthropy and the WHO have major influence. A simple and in-your-face conclusion should be that the tobacco control measures went too far and the market and the consumers do not like it and are rebelling against government measures.

Simon's solutions with filling up prison cells and creating a crime that never existed before is simply unworkable. Yes, the numbers that Simon is throwing around are correct, but who says that the price of government cigarettes should drop to $30. We can go lower than that.

At this stage even plain packaging is in question.

Even if we drop the price to $15, the market would choose the normal packaging. And the black market had 5 years to build brand loyalty and addiction to a certain brand. The same goes for vapes; the market has moved to disposable vapes and even if we legalise vaping right now a shop with the traditional vaping gear and juices would do poorly.

As far as I am concerned the cigarettes and disposables should stand beside each other on a shelf. Bad mouthing opponents of his views is a classic tool, but unfortunately it works.

As regards Alex Wodak's article I agree with everything, with the only difference that if Australia wants to tackle this issue seriously it has to do it fast and drastic. If the government decides to take steps gradually, Simon wins.

But this would mean being ready to get public criticism from the WHO, all the advocacies, screaming media (although the government can control the media), rise in the number of smokers (although I would not expect a sharp rise; first we need to get the real number of smokers and vapers in Australia before the drastic measures).

We need to get the legal nicotine market under control.

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