Big tobacco is targeting teenagers, says Tanya Plibersek
- AAP
- May 17, 2012
British American Tobacco Australia (BATA) has released a budget brand called Just Smokes which retails around $11.50 for a pack of 25.
That's much lower than the average price of $16 and only slightly higher than illegal counterfeit products.
BATA argues it has been forced to go down market because the Government's decision to increase the tobacco excise by 25 per cent in 2010 has resulted in a massive growth in cheap cigarettes and contraband.
But Health Minister Tanya Plibersek isn't buying that argument.
"By dropping their prices British American Tobacco appears to be directly targeting vulnerable teenagers," she said in a statement today.
"We know that young people are the most price sensitive smokers of all."
The health minister said BATA's move was "very disappointing" and while counterfeit cigarettes did exist tobacco companies overstated their availability as an excuse to push their own products harder.
Banning cigarette advertising, making it illegal to sell smokes to minors, introducing graphic health warnings and hiking the tobacco excise had led to a substantial drop in smoking rates, Ms Plibersek said.
BATA spokesman Scott McIntyre says the Government is to blame for the price war by increasing the excise.
The cheap price segment of the market has grown 63 per cent since 2010, he said in a statement.
"Our customers have been down-trading to cheaper products or illegal cigarettes so we've been forced to compete.
"If the Government keeps giving us ad-hoc excise increases like they have in the past then all they'll do is make the problem worse."
Mr McIntyre later admitted on ABC Radio that cheaper cigarettes would probably result in more people lighting up.
"One could assume (so) if prices keep getting cheaper and cheaper and there's a huge growth in that area."
Asked whether the government would simply increase the excise again to combat BATA's move Ms Plibersek said: "We'll keep looking at what we need to do to continue to reduce the rates of people smoking in Australia."
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