Memorandum submitted by Philip Morris Limited (CJ&I 408)

I write to outline the support of Philip Morris Limited[1] for Amendment (NC 41) - "Persistent sales of tobacco to persons under 18" - to the Criminal Justice and Immigration Bill, tabled by the Rt. Hon. David Hanson MP, the Minister of State at the Ministry of Justice. We fully support the need for the UK Government to effectively introduce a licensing scheme for the sale of tobacco products.

We fully recognise that smoking is addictive and causes serious and fatal diseases. We believe that minors should not smoke; that smoking should be a choice available only to adults; and in the light of this, that regulation should include stringent measures to prevent youth access to tobacco products.

We believe that the introduction of this amendment represents a real landmark in the provision of effective policy to prevent youth smoking. However, we feel that there is an opportunity here to make even more headway in tackling this issue. We believe that the Government should take a step further through the introduction of a 'positive' licensing system - rather than the 'negative' licensing system that the Ministers amendment currently provides. To provide a 'positive' licensing system would replicate the licensing system now established for alcohol sales.

The reason we hold this view is because youth smoking is such a difficult issue to resolve that concerted and comprehensive efforts to address it are required. Access prevention, education, and other efforts should be used in conjunction to create an environment in which minors do not want and cannot smoke. Achieving that requires a concerted effort of all stakeholders involved, including parents, teachers and other opinion leaders that influence children's behaviour. However, retailers and tobacco manufacturers have responsibilities too.

We believe that much greater efforts should be made to ensure adherence to the legal age for the sale of tobacco products and to achieve this, retailers should understand that failure to follow the law will result in meaningful penalties, including the loss of the right to sell tobacco products.

Clearly, a key barrier to acceptance of this for retailers is the cost and administrative burden they will bear and, in adopting a positive licensing system, the Government should try to reduce these as much as possible. However, in the case of tobacco products, this should be balanced with the public health objective of reducing the harm caused by tobacco products to do this effectively, legislation should be applied to ensure a comprehensive approach

'Positive' Licensing

We appreciate that the Government has come to the position of implementing a 'negative' licensing scheme for tobacco following an extensive public consultation process.[2] However, we believe that 'positive' licensing would provide considerable additional benefits.

Importantly, this approach has also been supported by the Royal College of General Practitioners (RCGP), the British Heart Foundation, Action on Smoking and Health (ASH), Cancer Research UK[3] and the British Medical Association.

The major difference between what is proposed by Mr Hanson ('negative' licensing) and what we suggest here ('positive' licensing) is that retailers would be required to apply for and pay a nominal fee for a license.

This means that a 'positive' licensing scheme would be more effective in establishing clear rules and obligations for retailers not to sell to underage persons. As the Department of Health's 'Choosing Health' White Paper correctly pointed out, a positive licensing system "would have the greatest impact on reducing the number of illegal under-age sales by providing a clear incentive for retailers to comply with the law." Similarly, the Canadian Public Health Association has stated that the "strongest deterrent for a retailer selling to a minor is revocation or suspension of a license." Another key benefit is the ability of 'positive' licensing to assist enforcement agencies such as Trading Standard authorities by generating additional funds to cover the costs associated not only with administration, but enforcement of the minimum age law.

Finally, there are also other important, relevant issues regarding retail licensing that we would like to discuss with you. We also believe that licensing of the entire supply chain, In conjunction with other measures, is fundamental to addressing the problem of the illicit tobacco trade. Additionally, we think it pertinent for the Government to consider the potential message provided by the choice It makes In terms of licensing to those few but existent rogue traders determined to ignore the law.

I would be grateful for an opportunity to meet with you to provide further insight into our support for 'positive' licensing.

November 2007

[1] Philip Morris Limited is the UK affiliate of Philip Morris International (www.philipmorrisinternational.com) . Philip Morris Limited is not a member of the UK Tobacco Manufacturers' Association.

[2] Department of Health Consultation on Changing the Age of Sale for Tobacco, Feb 2007

[3] Ibid