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The Tobacco Industry in New Zealand: A Case Study of the Behaviour of Multinational Companies George Thomson, University of Otago, Wellington School of Medicine and Health Sciences Nick Wilson, University of Otago, Wellington School of Medicine and Health Sciences
ABSTRACT: This report takes a preliminary look at the behaviour of the tobacco industry in New
Zealand. It is based on a series of literature searches, interviews with key informants,
and on the examination of internal tobacco industry documents, many of which have
been released by court orders in the United States.
The report considers the tobacco industry activities in the context of a suggested
framework for a responsible industry. The framework assumes that where the
available evidence indicates that a consumer product poses a significant health
hazard, then there are a number of appropriate responses that a business should
undertake. These include warning the public, ceasing to promote the product and
modifying the product to reduce harm.
We found internal tobacco industry documents that appeared to show that advisers to
the industry in New Zealand believed that smoking caused cancer, at a period when
the industry was denying this link in statements to Parliament. Other documents
showed that the industry took some credit for the decision in 1994 to end the Public
Health Commission. The industry believed that they had slowed the adoption of new
health warnings about tobacco during the 1990s. The documents show that the
industry was assisted in their opposition to tobacco control activity by major New
Zealand law firms, and by lawyers that included Sir Geoffrey Palmer, an ex-Prime
Minister of New Zealand.
The behaviour of the tobacco industry in particular areas is summarised below.
The industry and the direct health effects of smoking: The available evidence
suggests that the tobacco industry in New Zealand has been irresponsible in its
prolonged delay in admitting the health risks posed by its products. Instead, it has
attempted to falsely reassure the public and has been obstructive regarding the
placement of health warnings on its products. When the industry has started to admit
to the health risks from smoking, it has done so in a vague and disingenuous way. It
has failed to substantively and appropriately communicate the health risk of its
products to its customers and the public.
The industry and the addictiveness of nicotine: The tobacco industry in New
Zealand has been irresponsible in not informing its customers that its products are
addictive. It has tried to provide reassurance to the public by defining smoking as
merely a “habit”. Furthermore, the industry has been obstructive about the placement
of health warnings with the word “addiction” on its products. Even though internal
industry documents have showed that British American Tobacco and Philip Morris
have known for several decades that nicotine is addictive, the companies have still not
actively and explicitly acknowledged the severity of the dependence created.
The industry and second-hand smoke: The tobacco industry in New Zealand has
consistently failed to warn the New Zealand public or the consumers of its products
about the health risks from second-hand smoke. Furthermore, it has attempted to
reassure the public and smokers that these risks are not real. These industry activities
have been undertaken while the parent companies of some of the New Zealand companies knew of the risks posed by second-hand smoke (as shown by their internal
documents). The irresponsible actions of the industry in New Zealand are similar to
the approach taken by the industry elsewhere.
Industry misuse of product design and opposition to harm reduction: The tobacco
industry in New Zealand appears to have misused the design of tobacco products,
particularly its use of additives. Many of the design changes may have been for
marketing purposes rather than for harm reduction. The industry has also opposed the
removal of fire accelerants from cigarettes. The apparent focus on marketing issues
and lack of concern about significantly reducing harm to consumers is consistent with
the policies of the industry’s parent companies and of other overseas tobacco
companies.
Industry opposition to tobacco control initiatives: The available evidence suggests
that the tobacco industry in New Zealand has opposed all substantive measures to
help reduce tobacco consumption, to prevent the uptake of smoking by youth, and to
protect the population from second-hand smoke. In particular, they have opposed
restrictions on tobacco promotion (advertising and sponsorship) and smokefree
environment regulations. They have also opposed the organisations involved in
tobacco control and the compensation of those harmed by tobacco use. This
irresponsible pattern of behaviour is highly consistent with that of the parent
companies overseas and of other international tobacco companies.
A responsible industry? It appears that the tobacco industry in New Zealand has
behaved in a highly irresponsible manner over the last four decades. The industry’s
activities would appear to conflict with the societal values embodied in consumer
protection legislation such as New Zealand’s Fair Trading Act.
Controlling the industry: We argue that given the extensive harm to New Zealanders
from tobacco use, and the chronically irresponsible behaviour of the tobacco industry,
there is a need for the New Zealand Government to more intensely regulate this
particular industry. We suggest that the desired end point for Government policy is a
smoking prevalence and exposure to second-hand smoke as near as possible to zero,
while still permitting smoking to be legal. A wide range of tobacco control
interventions should be used to achieve these end points.
We consider that essential elements of a more effective tobacco control programme
would include regular tobacco taxation increases and a much tighter regulatory
environment. In particular, there is a need to severely constrain the way tobacco is
sold and to control the composition of cigarettes. Publicising irresponsible tobacco
industry activities and facilitating legal action against the industry appear to be
valuable aspects that could be introduced to New Zealand Government tobacco
control activities.
An effective long-term programme for a virtually smokefree New Zealand would
need to be carefully planned. It may need to be conducted by a focused, independent
agency with secure funding. Without such measures the irresponsible behaviour of
the tobacco industry in New Zealand will continue to impose a major burden on the
health and welfare of its customers and on the public of New Zealand. SUGGESTED CITATION:
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