ASH Scotland comments on allegations of anti-competitive behaviour by tobacco industry
ASH Scotland noted reports this morning, Friday 25th April 2008, that the Office of Fair Trading is to investigate two of Britain’s biggest tobacco companies and a number of retailers for co-ordinating the future price of tobacco products. Commenting on the allegations, ASH Scotland’s Chief Executive Sheila Duffy said:
“The primary motivation for the tobacco industry is profit, whatever the costs to their customers. These costs are measured both in cash and in lives. Every year tobacco accounts for a quarter of all deaths, killing 13,500 people by illnesses caused by smoking(1).
“The tobacco industry has lobbied vociferously for tobacco taxes to be reduced, arguing that high taxes make cigarettes bought in the UK the most expensive in the EU and that this encourages smuggling(2).
“Research commissioned by ASH in England suggests that between 2000 and 2003, taxes on tobacco increased only at the rate of inflation, or 6.46%. But during that same period, the retail price of cigarettes went up by 12.49%3. It would be ironic and hypocritical if tobacco companies who argue for lower taxes were found to have illegally inflated the price of their own products in order to increase their profits.
“ASH Scotland supports increased taxes to raise the price of tobacco, and we believe there is public support for higher taxes on tobacco(3). Higher cigarette prices are a factor in motivating smokers to quit and higher tax revenues enable the government to spend more on smoking prevention and cessation, and on healthcare to tackle the harm that tobacco does.
"However, higher tobacco prices resulting from industry collusion benefit only the tobacco companies."
ENDS
For further information or comment, please contact: ASH Scotland on 0131 225 4725 or 07776 142299
Notes to editors:
ASH Scotland is the leading voluntary organisation campaigning for effective measures to protect people from the harmful effects of tobacco.
ASH Scotland is a registered Scottish charity (SC 010412) and a company limited by guarantee (Scottish company no 141711).
1. In 2004, an estimated 13,473 deaths in Scotland were attributable to smoking, which equated to 24% of all deaths. Source: NHS Scotland
2. The Tobacco Manufacturers’ Association, which represents the UK tobacco companies, continues to argue for a freeze on tobacco duties. In a letter sent to MPs about this year’s Budget, the TMA said it was asking the Chancellor to freeze the level of tobacco duty.
3. Research conducted by health economist Professor Joy Townsend on behalf of ASH England Unpublished. 2008.
4. ASH Scotland recently commissioned YouGov to carry out public opinion polling on a number of tobacco control issues. One question asked was worded as follows:
How strongly, if at all, would you support or oppose the following measures…?
|
Increasing the price of tobacco products faster than the rate of inflation |
% |
|---|---|
|
Strongly support |
40 |
|
Tend to support |
22 |
|
Neither support nor oppose |
14 |
|
Tend to oppose |
9 |
|
Strongly oppose |
13 |
|
Don’t Know |
2 |
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,100 adults. Fieldwork was undertaken between 20th - 22nd February 2008. The survey was carried out online. The figures have been weighted and are representative of all Scottish adults (aged 18+).