End of tobacco sales considered in Australia

In Australia, the government is being urged by public health researchers to set a date by which the sale of tobacco products will be banned in the country, with the aim of eliminating smoking altogether. The call follows a survey of Australians that found a majority of the country supported phasing out the sale of tobacco products.

In late 2020, researchers sought to assess public support for phasing out the sale of tobacco products, both in retail and in supermarkets. Of 2,774 respondents, 52.8% said they were in favour of such a public health measure. According to the study, these results vary very little by age, with 53.8% of adults under 30 years old saying they were in favour of the measure, compared to 53.4% of those over 50 years old. However, people's smoking status is an important variable in the nature of the responses, with only 31.7% of smokers saying they support ending the legal sale of tobacco products in Australia.[1].

Allowing more visibility and an exit from tobacco for retailers

According to the researchers, if the fight against smoking involves regulating demand, it is also done through a framework for supply. For the authors, the need for the Australian government to eventually ban the sale of tobacco products can be explained for several reasons[2]. First, as such, tobacco products do not meet consumer safety standards. If tobacco products were invented today, they would be banned from sale because of their harmfulness. Second, setting a date would put an end to the conflict between public health objectives and the commercial imperatives of companies. Setting a date will also provide additional transparency for retailers, who will be able to plan and complete their definitive exit from tobacco, with the support of the public authorities. Furthermore, given that the majority of smokers would like to stop their consumption, such a measure would provide a more favourable incentive for smokers to quit, provided that individual support is put in place at the same time.

Ensuring a clear and favourable fiscal trajectory for Australia

Finally, deciding on a date would allow public authorities to plan the exit from tobacco, with the fiscal consequences that such a decision entails. In the short term, stopping the sale of tobacco would imply a loss of fiscal revenue that would have to be compensated. However, public budgets, with immediate effect, would see the reduction in the prevalence of smoking followed by positive economic effects, far exceeding the costs involved in stopping a sector and consumption. First, the reduction in smoking will mechanically lead to a reduction in health expenditure, which today represents a burden for communities, and will lead to an increase in productivity. Furthermore, the money not allocated to tobacco products will allow former smokers to generate income, and therefore purchasing power for other products and services, which create more value, jobs and activity than smoking. This position corroborates a number of studies which show that the end game strategy, aimed at reducing tobacco consumption to residual levels, is particularly beneficial for a country's economy. For example, a study jointly carried out by Action on Smoking and Health (ASH) and the Landman Economics consultancy claimed in October 2021 that ending smoking in the United Kingdom could create half a million additional jobs.

"Government action is lagging behind"

In their position paper, public health researchers show that public decision-makers in Australia are lagging behind in terms of public support for moving forward with public health measures. While the end of tobacco sales has never been achieved on a national scale, several municipalities have already decided to take the plunge, such as the Balanga municipal council in the Philippines in 2016, or that of Beverley Hills and Manhattan Beach in January 2021. Along the same lines, in New Zealand, in order to reduce the smoking rate from 12% to 5% within four years, The government has proposed an action plan aimed in particular at drastically reducing the number of points of sale of tobacco products in the country.

FT

[1] The Medical Journal of Australia, Public support for phasing out the sale of cigarettes in Australia, 11/15/2021, (accessed 11/16/2021)

[2] The Medical Journal of Australia, It is time for governments to support retailers in the transition to a smoke-free society, 11/15/2021, (accessed 11/16/2021)