Tobacco companies and governments pocket $106m from illegal cigarette supply to kids 

267,000 children a "cash cow" for government coffers 

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Tobacco companies and governments were slammed today (June 19) at a government health forum for ignoring youth smoking rates whilst collecting a massive $106M in revenue from the illegal supply of cigarettes to children.

New research* shows:

• Almost 43,000 children a year, or almost 120 a day, are becoming “established” smokers – and a quarter of these will die from their addiction.

• Under-18s spend almost $125m a year on cigarettes. Of this, almost $19m goes to tobacco companies, (about the same to retailers), and $87m goes to government taxes.

• Of the government component, $77m goes to the Commonwealth and about $10m is collected as GST returned to the states (an estimated $3m would go to NSW alone).

“Governments have become addicted to revenue from tobacco sales including the 267,000 children who are illegally supplied cigarettes by unscrupulous tobacco retailers and others who have no regard for the law or the health of children”, says Anne Jones, Chief Executive of Action on Smoking and Health (ASH) Australia.

“We’re calling on federal and state governments to protect children and reduce tobacco costs, by increasing government investment from a very low $1.30 per capita to levels matching other OECD countries including the US, Canada, New Zealand and Ireland – in all of which, government investment in this is three times greater.”

ASH criticised tobacco companies for funding ineffective youth smoking campaigns and claiming they didn’t want children to smoke, whilst pocketing $19m in revenue from the supply of cigarettes to children – many by tobacco retailers. “If tobacco companies and governments were genuine about reducing youth smoking, they would hand over the 'ill gotten gains' from children to fund anti smoking education campaigns”, says Anne Jones.

At the statewide “TobNet” tobacco control conference in Sydney today, ASH called on the NSW Government to get behind the call by health groups for:

• a one cent levy per cigarette to fund mass media education campaigns;

• a licensing scheme for tobacco retailers;

• an end to tobacco product displays in shops; and

• legislation for total smoking bans in public places.

* White V & Scollo M, Australian and New Zealand Journal of Public Health, June 2003, 27(3):359-361

Comment:            Anne Jones, CEO, ASH Australia    ph. 0417-227-879

Media inquiries:            Stafford Sanders            ph. (02) 9334-1823     

Page last updated on 19/6/2003