New Zealand: Philip Morris' offensive to obtain advantageous taxation in favour of heated tobacco

An internal Philip Morris document from 2017 and consulted by the media Radio New-Zealand[1], reveals the manufacturer's plan to lobby the ruling NZ First and Te Pati Māori parliamentary groups to secure favourable regulation for its heated tobacco products.

The document obtained by the New Zealand media indicates that the manufacturer's number one objective is to "maintain political pressure to ensure a regulatory framework favourable to all smoke-free alternatives."

Public health associations are deploring the situation, "We had world-leading anti-smoking legislation, backed by solid evidence, that would have reduced thousands of deaths, harms and costs to the health system. It seems pretty clear now that it has been sidelined in favour of Philip Morris.", reacted the Coalition for Health in a press release[2].

Include new tobacco and nicotine products in the government's Smokefree 2025 strategy

RNZ has obtained the document, Designing a Smoke-free Future in New Zealand, a plan to push for heated tobacco and other nicotine products (vaping products, snus and nicotine pouches) to be included in the government's Smokefree 2025 strategy to achieve a tobacco-free generation.

The plan reveals that the cigarette company planned to target think tanks as third parties to “advocate for regulatory and fiscal policies that are proportionate to the risk posed by non-combustible products” compared to manufactured cigarettes. Political parties were also targeted, according to the document: “leverage other political actors beyond the Māori Party, such as NZ First, to push for the inclusion of all smoke-free products as a necessary part of the Smokefree 2025 strategy”.

Philip Morris also wanted to capture the harm reduction discourse in the media and then among the general public by launching a "a public relations campaign to create the optimal context for Philip Morris to participate in a smoke-free world in New Zealand," by getting the message across that heated tobacco would help achieve the government's target. The manufacturer intends to position itself as a full-fledged player offering solutions that can reduce smoking. The document also states "Those who oppose Philip Morris' role in a smoke-free New Zealand... [mean] they are either opposed to harm reduction or in favour of the risks [of smoking]."

A recent internal document from Philip Morris Japan revealed a similar strategy. The manufacturer lobbied for IQOS to be allowed in places where smoking is banned in Japan and for its product to be taxed at a favorable rate to ensure its accessibility. The manufacturer specifically targeted politicians and third parties to get its messages across.[3].

A lobby that has borne fruit in New Zealand

Casey Costello, Associate Minister for Health, Minister for Customs and a NZ First MP, is responsible for tobacco and vaping policy. She recently halved the excise duty on heated tobacco products, is exploring options to legalise the sale of oral nicotine products (nicotine pouches). She also oversaw the repeal of New Zealand’s world-first tobacco control law, which would have banned the sale of tobacco to anyone born after 2009 and massively reduced the number of tobacco outlets in the country.[4]. Thus, Costello's decision led the government to set aside a contingency fund of A$216 million to cover the estimated loss of revenue from heated tobacco taxes.[5].

In a statement to RNZ, Ms Costello said vaping had been an effective tool for quitting smoking and she was interested in seeing if heated tobacco would also be a useful tool for quitting, adding: “Heated tobacco has a similar risk profile to vaping.” Such a claim goes against the scientific literature, as there is no independent study to support the claim that using heated tobacco poses a reduced risk compared to traditional cigarettes. His statement also goes against his own ministry, which says there is no solid evidence that heated tobacco devices are safe and that they should not be offered as a cessation tool.

Costello thus takes up Philip Morris's speech by encouraging current smokers to maintain their nicotine addiction instead of encouraging them to stop their consumption entirely.

NZ First's closeness to the tobacco industry

Since coming to power in November 2023, the new government coalition has continued to oppose tobacco control measures and has shown great proximity to the tobacco industry. Shane Jones, Minister of State for Finance and Energy, has thus refused to respect the transparency provisions of the Framework Convention on Tobacco Control., whose Article 5.3 prohibits any interference by the tobacco industry in public policies. Shane Jones said he knew nothing about it and that he did not "not an iota of attention."

David Broome, formerly NZ First chief of staff from 2014 to 2017, is now head of external relations at Philip Morris. Apirana Dawson – who was director of operations and research in the office of party leader Winston Peters from 2013 to 2017 and led the party’s election campaigns in 2014 and 2017 – is now head of external affairs at Philip Morris. Shane Jones also invited Dawson to the swearing-in ceremony of the new government last November and has “taken advice” from him on the government’s Smokefree 2025 strategy.[6].

Costello also chaired the Taxpayers' Union, a lobby group that took positions in support of the tobacco industry without disclosing that it received money from British American Tobacco.

©Generation Without Tobacco

AE

[1] Guyon Espiner, Leaked tobacco lobbying plan for 'political pressure' shows tobacco giant got its tax cut wish, RNZ, published August 22, 2024, accessed the same day

[2] Press release, NZ First need to come clean on lobbying by Philip Morris, Health Coaliation, published August 22, 2024, accessed the same day

[3] Tobacco-free generation, Heated tobacco: internal document reveals Philip Morris' offensive in Japan, published July 1, 2024, accessed August 22, 2024

[4] Tobacco-free generation, New Zealand: Health Minister accused of bowing to tobacco industry, published July 31, 2024, accessed August 22, 2024

[5] Guyon Espiner, Govt set aside $216m to pay for heated tobacco product tax cuts, RNZ, published July 30, 2024, accessed August 22, 2024

[6] Andrea Vance, Tobacco lobbyist guest at Ministers' swearing-in ceremony, The Post, published January 25, 2024, accessed August 22, 2024