Daniel Torras: Ban on displaying cigarettes will boost trade in counterfeits

Published on Monday 9 November 2009 21:51

THE Scottish Government's proposed ban on the display of tobacco in shops will not reduce smoking among young people. Instead, it is more likely to exacerbate the problem by increasing the illicit trade in fake tobacco products.

Unscrupulous retailers will find it easier to sell cheaper, counterfeit cigarettes when there is no public display of genuine products.

The ban is being proposed despite the Scottish Parliament's health and sport committee admitting that "the international evidence to date is inconclusive". What is the evidence?

Our concern is that evidence that a display ban will not achieve the goal of reducing youth smoking appears to have been disregarded by all parties proposing this legislation.

A new report by Dr Andrew Lilico of the Europe Economics consultancy considers the latest data from Canada and Iceland, where display bans are in force. Having conducted more detailed and powerful statistical tests than were previously possible, Dr Lilico concludes there is no credible evidence that the introduction of display bans there has been associated with reduced smoking prevalence.

In Ireland, which introduced a display ban in July, illegal fake cigarettes are reportedly on the increase and a large number have been seized by customs over the last few months.

A new wave of sophisticated fake products flooding Ireland's black market were first uncovered by customs in June, two weeks before the display ban came into effect. The timing is surely no coincidence.

Over the past few months, counterfeiters have focused on reproducing Ireland's top brands, many complete with bilingual health warnings and tax stamps, making it difficult for customers, young and old, to tell them from the real thing.

I fear a display ban in Scotland will result in an "open door" for people involved in organised crime to distribute contraband and counterfeit tobacco products throughout the country.

Many think buying illegal cigarettes is a "victimless crime", but doing so generates revenues for the worst of criminals, as highlighted by David Maddox in this newspaper in September. These gangs do not care what age their customers are.

Her Majesty's Revenue and Customs estimates that in 2006-7 it lost 2.8 to 4.1 billion in revenue to criminals – more than is currently spent on policing Scotland or on the Scottish regiments – and early evidence shows that this loss could increase with a display ban.

There are better ways of tackling youth smoking and avoiding an increase in the sale of smuggled and fake cigarettes.

We recognise our responsibility and are working hard to reduce smoking among the young, particularly those under the legal age.

However, we are concerned that banning retail displays will not achieve the objective, but instead exacerbate the problem.

The best ways are to ban proxy purchasing, a move we welcome from the Scottish Government, introduce heavier fines for retailers who knowingly sell cigarettes to under-age smokers, give greater resources to the enforcement agencies and reinforce measures such as "No ID No Sale" and other public information campaigns.

This legislation will have damaging consequences and will not work, so we urge the Scottish Government to abandon the bill and work with all stakeholders to find an effective solution which will reduce youth smoking.

&#149 Daniel Torras is managing director of Japan Tobacco International, maker of cigarette brands including Silk Cut