Tobacco — House of Commons, 2018-10-30
Topic: Mixed Topics
Philip Andrew Davies (Conservative, Centre-right): To be clear, while I rise to oppose the Bill, I do not intend to divide the House. I do not intend to speak for long either, as I know that many hon. Members want to speak in the Budget debate, but it is important to put the Bill that the right hon. Member for Rother Valley (Sir Kevin Barron) proposes into some context. I commend his dogged determination to reduce the number of people who smoke, but my fear is that, with this Bill, the points that he raises are either unwelcome or largely not necessary Yesterday the Chancellor again increased the tax on tobacco products by a rate above inflation, which means that the tax on some products is now more than 90% of the retail price. Around £12 billion of excise revenue is raised from tobacco products in the UK each year, and that does not include VAT. Each year the Government increase the level further above inflation. It was supposedly Louis XIV’s Finance Minister, Jean-Baptiste Colbert, who famously said that the art of levying taxes is to pluck the goose so as to get the maximum amount of feathers with the minimum amount of hissing. That is the balancing act that the Government have to perform every year with duties, including tobacco duty, except in this case the only hissing that we can hear is the sound of the criminal gangs who smuggle illegal tobacco into this country rubbing their hands with glee. If the Government thought that they could raise any more from the tobacco industry, I think that they would already be doing it The right hon. Gentleman proposes that the House should require the Secretary of State to report on how he is making the tobacco industry pay for smoking cessation services. One is tempted to ask how much more than £12 billion the right hon. Gentleman wants or expects, but of course what he is calling for is some kind of levy on tobacco, which he and a few others have repeatedly asked this and previous Governments about in the House. Indeed, such a question was asked only last month by the hon. Member for York Central (Rachael Maskell), so clearly Members are having no difficulty in holding the Government to account on this issue, and I certainly do not think that we need a new Bill to help us The hon. Lady received the same answer in September that the Government have given many times before: a levy would be passed on to consumers and so would have the same effect as a duty increase, which is happening anyway, except for the fact that a levy would complicate the tax system, increase the administrative burden on Her Majesty’s Revenue and Customs, and create uncertainty for consumers and businesses. It was a bad idea in 2016 when the right hon. Member for Rother Valley presented a petition to the House about it, it was a bad idea last month, and it is still a bad idea today. The right hon. Gentleman keeps banging this drum, but perhaps it is time to change the tune On the advertising and promotion of alternatives to smoking, such as e-cigarettes, the right hon. Gentleman will be aware that the Government have already committed to examining how they can better support smokers with clear information after we leave the EU and once we are no longer held back by the outdated thinking of the EU’s tobacco products directive—yet another benefit of leaving. The best thing that a smoker can do, of course, is to quit smoking altogether, but it is obvious that those who cannot, or do not want to, deserve to be told the truth about e-cigarettes and other products that could offer them a less harmful alternative. At present, the law prevents manufacturers from giving them that information, but I hope that once we leave the EU, we will be able to change that Not all aspects of the tobacco products directive are bad, however; some offer real protections to consumers and deserve to be preserved after we leave the EU. For example, the right hon. Gentleman will be aware that the directive requires the manufacturers and importers of e-cigarettes and novel tobacco products to share with the Government any market research information that they hold on those products when they place them on the public register of legal products. That seems to be a very proper measure to allow the Government to monitor what is happening in this marketplace. As long as that measure remains in place after we leave the EU, it strikes me that we see another part of the right hon. Gentleman’s proposed Bill that is simply not needed Finally, the right hon. Gentleman asks for the introduction of a tobacco licensing scheme, with tough penalties, but again that simply is not needed. The Government are already at work on implementing a Europe-wide system to track and trace tobacco products. That system will require that manufacturers, importers, wholesalers and retailers are all registered on a public database as "economic operators" in order to handle tobacco. That is a de facto licensing scheme anyway, and it does everything that is needed to support trading standards enforcement against unscrupulous criminals who sell smuggled tobacco or sell tobacco to children—with a bit of luck, we will see a few more of them behind bars as a result. I certainly hope that anyone who is caught committing such crimes would be automatically struck off the list and rendered unable to legally handle tobacco As I said, the right hon. Gentleman deserves our respect for his tireless and relentless work to reduce smoking. Although it is not my intention to divide the House, I thought that it was important to put on record the context of his proposed Bill and to point out that its measures are either unwelcome or, more often, not necessary Question put (Standing Order No. 23) and agreed to. Ordered, That Sir Kevin Barron, Norman Lamb, Mark Pawsey, Liz Kendall, Jess Phillips, Crispin Blunt, Mr Charles Walker, Mr Kevan Jones, Adam Afriyie and Tonia Antoniazzi present the Bill Sir Kevin Barron accordingly presented the Bill Bill read the First time; to be read a Second time on Friday 23 November, and to be printed (Bill 280).