Impasse over tobacco

NEARLY three years after government gazetted two new draft regulations on tobacco, the Health Department and the industry have yet to find common ground on a final draft.

Financial Mail, 15 January 2015

Health Minister Aaron Motsoaledi remains resolute in his quest to reduce smoking by introducing more legislation, while the industry says it is opposed to his "extreme", "impractical" and "unwarranted" methods.

The first set of regulations, published in March 2012, restricted outdoor smoking to 10 m away from a door or window. The second set, published in August 2012, intended to limit the space in which specialist tobacco retailers could display tobacco and related products to 4m² and to 1m² for all other retailers and wholesalers. The idea is to curb impulse buying, prevent the triggering of cravings in ex-smokers, and prevent young people picking up the habit.

Motsoaledi said his department is "going to go all out" on smoking because tobacco makes no contribution to health. Francois van der Merwe, chairman of the Tobacco Institute of Southern Africa, an industry body representing producers and distributors, said the industry supports the Minister's health agenda to reduce smoking because it is harmful. He said the institute's members agree with sensible regulation, but not with is extremism. The display restrictions at the point of sale means tobacconists will have to fit more than 800 products into a 4m² area, said Warren Dreyer, CEO of tobacco specialist franchise JJ Cale. The products include pipes, lighters, cigarettes, tobacco, snuff, cigars and hookah pipes.

Kevin Uren, CEO of tobacco distributor Wicked Imports, said the proposed regulations will force retailers to display market-leading products. He said the problem is that the exposure of all other products will be significantly reduced and retailers and importers will lose business. Van der Merwe said this is problematic because tobacco advertising is banned in SA. The only opportunity companies have to attract customers is at the point of sale.

He said the unintended consequence of this is a possible boost for the black market, which currently accounts for 23 percent of tobacco sales. David Sawula, chairman of the Township Liquor Industry Association, said even the 10m distance requirement is unrealistic in a township tavern because of the close proximity to other premises.

He said it amounts to an effective ban on smoking in taverns, which will harm their businesses. Van der Merwe said the tobacco industry contributed more than R11bn in tax revenue last year and provides between 10 000 and 12 000 direct jobs. Uren said the solution is to license everyone who sells tobacco. In that way, government will be able to improve regulation. Motsoaledi's spokesman, Joe Maila, said the department is still reviewing comments from the public and interested parties. He could not say when the final regulations will be gazetted.