The Government’s decision to award a $216 million tax break for Philip Morris’ heated tobacco products reeks of tobacco industry interference and needs to be thoroughly investigated.

“This $216 million tax cut appears to prioritise the needs of the tobacco industry, rather than New Zealanders’ health. Treasury advised the policy would likely only benefit Philip Morris and yet Cabinet signed it off,” said Labour health spokesperson Ayesha Verrall said.

“The tobacco industry influences Government to avoid regulation all over the world, and it appears New Zealand is not exempt.

“Philip Morris wrote a plan to get this tax break by influencing New Zealand First and working through the Taxpayers’ Union, and the contents of that plan appear to have come to pass.

“Casey Costello has tried to hide documents from the public and claim she had independent advice on the effectiveness of heated tobacco products as a smoking cessation tool. She also brought other proposals to Cabinet that would have benefited Philip Morris but denied she knew it would. She has consistently prioritised the tobacco industry’s bottom line over the health of New Zealanders.

“Casey Costello wouldn't be in this position if she was transparent in her handling of documents and straight in her answers to questions in Parliament.

“New Zealanders have a right to know if tax breaks are being dished out to harmful industries because of back room deals. This is crucial for New Zealanders’ trust in government.

“We are seeing the same tactics the tobacco industry has used worldwide here in New Zealand. This includes the revolving door that exists between New Zealand First and the tobacco industry, and the use of front organisations like the Taxpayers’ Union.

“I am taking this action because the Prime Minister has refused to hold Casey Costello to a reasonable standard of behaviour when it comes to transparency,” said Ayesha Verrall.

Notes:

Letter from Ayesha Verrall to Office of the Auditor General

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