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Category: Health / Health Policy / Smoking / Small Business / Business, Economics and Finance

Tobacco licensing fee increase has small business fuming

Tuesday, 2 Aug 2016 04:32:10 | Stephen Smiley

There's concern the licence hike will not help health, and will hurt business. (ABC TV)

There are fears tough measures to combat smoking will allow the black market sale of cigarettes to flourish, and to hurt small business.

Key points:

  • Tobacco licence fees set to increase from $731 next year to $1,097 in 2018
  • Fines for selling to minors up from $7,850 to $18,120
  • Opposition accuses Government of failing to consult

The Government has unveiled a raft of changes to laws and regulations as part of its 'Healthy Tasmania' plan, the release of which was a key election promise.

The small business lobby has taken particular exception to a proposal to treble the annual fee paid by tobacco retailers for a trading licence.

The Small Business Council's Robert Mallett said it would not drive down the state's high smoking rate.

"The biggest effect I think it's going to have is put small business out of the marketplace, and move the market to Coles or Woolies," he said.

Mr Mallett - who stood as a Liberal candidate in Denison in the 2014 state election - said he did not think the policy proposal was consistent with the Liberals' commitment to boost small business.

"We had been very pleased with [the Government's] performance to date, but it doesn't seem to fit with their mantra to try and price tobacco retailers out of the business," he said.

Saad Mohamad, who runs a tobacco store on Argyle Street in Hobart, agreed.

"There's no doubt it will put extra pressure on us to make that money up," he said.

"Our licensing only allows us to sell tobacco-related products, so therefore [Coles and Woolworths] have an advantage and unfortunately we don't."

Licence fee plan has our support: Heart Foundation

Under the plan, the Government is proposing to increase tobacco licence fees to $731.34 by next year, and to $1,097 by 2018.

It is also proposing to raise the maximum fine for anyone selling tobacco products to minors from $7,850 to $18,120, which would be the equal-highest fine rate in Australia.

Government minister Matthew Groom said the policy was sound, and struck the right balance.

"We're very committed to ensuring we get good outcomes for Tasmanians when it comes to health," he said.

Opposition Leader Bryan Green agreed crafting an effective anti-smoking policy was difficult, but still criticised the proposal to increase fees.

"The Government is all over the place, and they obviously have not consulted with small business before making this decision," he said.

Graham Lynch from the Heart Foundation had little sympathy for tobacconists' complaints.

"Everybody who produces tobacco knows that if used as intended it will shorten lives," he said.

Canteens policy is ours, Labor says

Another feature of the 'Healthy Tasmania' plan is a proposal to improve food and drink choices at school canteens.

In its 'Healthy Tasmania' document, the Government foreshadows a plan to deliver "healthy school canteens and breakfast clubs", and to introduce a healthy "canteen accreditation" process.

The State Opposition has welcomed those elements, although it said Health Minister Michael Ferguson had pinched some of its ideas.

In a statement, Labor's Rebecca White called Mr Ferguson a "copycat".

Elements of the Government's plan will need parliamentary backing, and it is not yet clear when the changes will be brought on for debate.

AustraliaPlus


 

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