Big tobacco promises to reduce prices in Australia if its government proceeds with its idea to introduce plain packaging. A few weeks ago, Australia reported the world’s severe laws on tobacco products that would require cigarette producers to sell their products in olive-green packages with graphic warnings.

In accordance with the given legislation, which to take effect in the future year, all logos will be withdrawn from cigarette packages, and tobacco enterprises should print their brand name in a particular font.

British American Tobacco (BAT) started a national media campaign against the “unsanctioned plans”, with its Australian executive David Crow forecasting an increase in the black market. “When all cigarette packages look the same without trademarks and certain distinguishing features, counterfeiters will smuggle cigarettes in Australia,” he stated. “Could the price of tobacco products drop with time? Within a significant period, probably yes. Lower prices usually mean more people will smoke. It will lead to reverse situation and more people will start smoking,” he said. “We do not have any evidences proving that plain packages would reduce smoking rate. What evidences does the government have that their idea with plain packages will lead to positive results? Can the government assure a 100% guarantee that taxpayers’ money won’t be allocated on various compensations?” Mr. Crow declared.

Canberra states that tobacco consumption cost Australia $31.5 billion annually in healthcare and lost productivity. Although Australia would be the first country to introduce plain packaging for cigarettes, Britain, Canada and New Zealand plan to implement similar policy.

The given action has already got Imperial Tobacco Australia angry, which declared that it will fight against this move and impact revenues. BAT declares the proposed legislation, which still should be approved by parliament, would violate several laws as for instance: international trademark and intellectual property laws.

Health Minister Nicola Roxon declared that she expected big tobacco to struggle in the courts, but promised that government would stay the ground, underlining that excise taxes could be increased if prices drop. “I suppose that we are in a good position where tobacco companies state they want to defend their brands revenues but they declare they will reduce prices in order to attract more smokers,” she added. ”The plain packaging is one method we can drop the danger caused to people by smoking, we can free up money spent in healthcare.”

The Cancer Council stated the tobacco industry actions demonstrated that they were quite worried. “This hopeless threat from the tobacco industry should demonstrate to anyone who demands the proof on whether plain packaging will have effect,” chief executive Ian Olver concluded.

By Clark Moore, Staff Writer Copyright © 2011 Hot-Cigs.com All rights reserved.