Clause 15 - Penalties
Tobacco Advertising and Promotion Bill
2:31 pm
Mr Peter Luff (Mid Worcestershire, Conservative)
We were talking about vacuums, as far as I recall, when we were interrupted at 11.25 am, and we were exploring the important question of the penalties that exist to ensure that the Act is complied with and is not simply treated as an operational cost.
I am sure the reputable manufacturers—the British American Tobaccos, Imperial Tobaccos, Philip Morris's and so on—will not wish to appear before the courts of England and Wales, or anywhere else, to be charged with breaking the law blatantly. My concern is that, as they will no longer be able to advertise their products, it will be easier for other brands to start taking market share away from them.
I do not know whether the figures that I have are correct; they come from the Tobacco Manufacturers Association, which, in a brief that I believe every member of the Committee has received, said that 7 per cent. of smokers switch brands each year. Some 26 per cent. smoke more than one brand, so the market for brand switches is massive—around £3 billion, including advertising.. If new, less scrupulous, manufacturers appear in the market place, there will be a huge opportunity for them. If they are prepared to break the law and run the risk of the inadequate penalties in clause 15, we will have a real problem.
In its brief, the TMA says, and I think that it has a point:
``The UK tobacco market has traditionally been dominated by premium priced brands.''
It claims:
``Advertising enables those premium brands to maintain consumer loyalty. In the absence of advertising, competition can only be in respect of distribution and price.''
It is wrong on that point. Cheaper companies may be prepared to flout the law if they feel that the price is high enough.
I invite the Minister to reflect on whether the catch-all penalty for the High street tobacconist might not prove tempting to reasonably large to medium-size businesses, which may be tempted into the UK market to attract brand share away from the established brands, which have traditionally maintained their position by advertising, and secured a higher price in the process. I am anxious that we should explore that point positively, and hope that the Minister will be able to reassure me.