Thursday 23rd January 2025
(1 day, 17 hours ago)
Public Bill CommitteesTobacco and Vapes Bill 2024-26 View all Tobacco and Vapes Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 23 January 2025 - (23 Jan 2025)
The Chair
With this it will be convenient to discuss the following:
Clause 121 stand part.
Government amendment 1.
Clause 122 stand part.
The Parliamentary Under-Secretary of State for Health and Social Care (Andrew Gwynne)
It is good to see you back in the Chair, Mr Dowd. These clauses concern the defences and exemptions to the advertising bans on relevant products—tobacco products, herbal smoking products, cigarette papers, vaping products and nicotine products—as set out in clauses 114 to 119, which we have just debated.
Clause 120 sets out three situations in which someone has a defence to the advertising bans. Those are trade adverts, sending information in response to a request and adverts for outside the United Kingdom. The clause sets out that adverts contained only in communications between members of specific, relevant trades in the course of business will have a defence if charged with an offence. For example, a vaping company could send promotional materials to someone responsible for buying products to sell, but that would otherwise be banned if aimed at members of the public. Similarly, a defence exists if the advert is contained in a publication that is not printed or intended to be marketed in the UK. The final defence is that if businesses receive a direct request about their products, they are permitted to respond to that request with material that would legally be considered an advert.
Clause 121 restates existing law that allows specialist tobacconists to advertise specialist products in their shops. Specialist tobacconists will therefore be exempt from the restrictions on advertisements in part 6 of the Bill, provided that their adverts meet certain criteria, such as being visible only inside the shop. The clause empowers the appropriate national authority in each of the devolved Administrations to make regulations to specify what health warnings and information must be included in the adverts. Specialist tobacconists make up a tiny percentage of the market in the UK and are focused on specialist products such as pipes and cigars, and this exemption reflects the specialist nature of the trade carried out by these shops. However, tobacco is a uniquely harmful product, so we will continue to monitor the specialist market closely in case the situation changes.
Clause 122 ensures that no offence is committed under part 6 of the Bill for something that is regulated under the law on displays. For example, displaying a relevant product or the price of the product in accordance with any regulations concerning displays would not be considered an advertisement for the purposes of advertising offences. Without this provision, a display of a relevant product or other material that is permitted may be prohibited as an advertisement. The provision therefore allows for shops to display a vape, subject to the restrictions set out in legislation on their display, without it being considered an advertisement.
However, in the relevant provision for Scotland, the clause refers only to the legislation on the display of the tobacco products themselves and does not include the legislative provision on the display of the prices of the tobacco products. Government amendment 1 has been made to ensure that both are captured when determining whether something is subject to the law relating to displays, as the equivalent provisions do for England, Wales and Northern Ireland. That has been done at the request of the Scottish Government to make the approach in Scotland consistent with that in the other three jurisdictions across the United Kingdom. It is for that reason that the Government commend this amendment and clauses 120 to 122 to the Committee.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
I noticed that Government amendment 1 was included in this grouping. Does the Minister want to talk about it?
Dr Johnson
Oh, sorry. I must have had a moment.
Clause 120 concerns advertising defences. I wanted to ask specifically about the defence relating to the relevant trade communication being directed solely at persons involved in that trade. Does that include adverts within trade magazines? Does it include trade shows and trade stands where these adverts might be visible? Will these adverts or promotions need to be explicitly directed at trade, and will they need to be only visible to trade, or could this actually create a loophole in which there is a suggestion that these are trade magazines, but are actually more widely available than that and therefore provide an advert to the public? How will that work? What if one is doing a trade show in a relatively public venue such as an exhibition centre?
Andrew Gwynne
I can answer that very quickly and clearly, because it was set out in my opening speech. I am not sure whether the shadow Minister was fully paying attention, because it also included Government amendment 1, in relation to bringing Scotland into line with the rest of the United Kingdom on these measures. The legislation sets out that adverts contained only in communications made between members of specific relevant trades in the course of business will have a defence if charged with an offence. I think that is pretty clear.
Dr Johnson
I understand what the Minister is saying, but if members of a trade body are being spoken to at a trade show, for example, will the people running the show need to make sure that people who are not members of the trade do not come? Sometimes, people may bring other people along with them. Will there need to be provisions to ensure that when that trade show is advertised, it is not done in a way that promotes the product itself? If the show is to happen, people will need to know about it, so how will they find out? This is just about making sure there are no loopholes.
There is also the business of who is publishing and who is distributing. If someone were to design, produce and print leaflets in the belief that they would be distributed abroad, but then someone gave some young delivery chap, perhaps in his teens, some money to deliver them to a group of households, as happens with pizza delivery adverts and such things, the young lad would be committing an offence of which he may or may not be aware. That is no excuse under the law, of course, but the person with greater culpability would be the person who gave him the leaflet. How does the Minister intend the law to be applied in such a situation?
Clause 121 concerns specialist tobacconists. The Minister has been quite consistent on every aspect of this legislation—apart from penalties—in saying that tobacco in all its forms is bad for people and needs to be eliminated, so I am interested in this specialist tobacco exemption. I understand that the advert is going to be available inside the store, and not visible from the outside, and that it will exclude cigarettes and hand-rolling tobacco. I am interested to understand why it will specifically exclude those and not other forms of tobacco. The Minister might say, “That is what the legislation says at the moment, and we want to keep it the same,” but passing new legislation is an opportunity to change things, review what we currently have and decide whether it needs to be different. I am interested in his reasons for that decision.
The clause defines a “specialist tobacconist” as a shop
“more than half of whose sales…derive from the sale of cigars, snuff, pipe tobacco and smoking accessories.”
That would appear to be on the basis of the cost or value of sales. What is the reason for that definition? It may be that that is the existing definition, but has the Minister considered whether specialist tobacconists should be defined according to whether they sell a greater or a lesser amount of such products? Also, we see vape shops on virtually every high street now, so how will the Bill apply to them?
Gregory Stafford (Farnham and Bordon) (Con)
It is a pleasure to serve under your chairmanship again, Mr Dowd. My understanding is that Government amendment 1 simply makes a correction to bring things into line, so I very much doubt that we will oppose it.
It is clearly necessary and right to have some defences written into law, but I have a few questions about clauses 121 and 122. As the shadow Minister said, the Minister and the Government have been extraordinarily clear that tobacco-based products, as well as vapes, are unhealthy and have a significant impact on public health. It is therefore interesting that the Minister has not been so consistent when it comes to what one might call specialist or traditional tobacco.
Dr Johnson
My hon. Friend is talking about specialist tobacco. Can he or the Minister enlighten the Committee as to whether specialist tobacco is less harmful than any other form?
Gregory Stafford
I do not claim to have a medical qualification, but my guess would be that there is no difference between specialist and other forms of tobacco. One might even say—again, I am not medically qualified —that specialist tobacco may be more harmful, because a pipe has no filter, and nor are there other things that could mitigate, at least minimally, the harmful nature of the tobacco. The shadow Minister is right, and the Minister has been clear, that there is no such thing as safe smoking in any form.
It is interesting that the Minister has decided to exempt specialist tobacconists in this regard. Perhaps he could enlighten us as to how many specialist tobacconists there are in the United Kingdom, and how many consumers currently buy their tobacco from a specialist tobacconist. That would give us some indication of how prevalent the issue is.
Jack Rankin (Windsor) (Con)
I encourage my hon. Friend not to criticise the Minister for doing something quite sensible in pursuing this evidence-based approach. I have said before that people who have a cigar on new year’s eve and who use specialist tobacconists—that is where I get mine—are the kind of people we should be letting off a little. The Minister is right.
Gregory Stafford
My hon. Friend and I agree on most areas of policy, but this is probably one on which we do not entirely see eye to eye. Another hon. Member asked me yesterday to mention the personal benefits of cigars for his stress levels. I informed him very clearly that reducing any amount of stress with a cigar only exacerbates the effect on his lungs; although he might feel a little less stressed in the moment, he will feel much more stressed when, unfortunately, he has a tobacco-related disease. I therefore disagree with my hon. Friend the Member for Windsor.
That being said, and I have mentioned this previously on other clauses, we must be consistent between larger and smaller retailers and not bring in anything that will disadvantage the smaller ones. Perhaps that is what was in the Minister’s mind when he included this clause.
Dr Johnson
My hon. Friend is making a very important point. Does he agree that the timing will be important too, because this legislation will come into force more quickly than the regulations? The Minister said that he would “go like the clappers”, but we have not had further definition of what that means or of how quickly regulations will come into force. Regulations on displays may lag behind the Bill’s provisions on advertising, so companies are likely to use the display provisions to circumvent the advertising provisions until the Minister brings the regulations in.
Gregory Stafford
I completely agree. It is essential that not only this clause and the regulations it will bring in, but all the clauses we have talked about—both those where regulations are included on the face of the Bill and those that give the Minister, the Department for Health and relevant authorities the power to implement other regulations and restrictions—are phased appropriately, so that retailers and manufacturers can adjust to the new laws. They must also be introduced rapidly enough that there are no loopholes, and in the right sequence so that people cannot take advantage of any loopholes.
That brings me to the point that vigilant enforcement and clear guidelines are necessary to prevent such exploitation. I would be interested to know from the Minister whether that links back to the previous clauses, in which we talked about the display of notices.
Likewise, we need to ensure that there is consistency across the jurisdictions. We have devolved government in this country, but if regulations concerning the display and advertisement of tobacco and vape products vary between the different countries of the United Kingdom, there could be cause for some legal issues. It is therefore vital to ensure that clause 122 is applied consistently across all parts of the United Kingdom to prevent confusion among retailers and to maintain the stated aim of the Bill, which is uniform public health standards.
I have a few questions to the Minister. First, will he be developing comprehensive guidelines for what constitutes a display versus an advertisement? These guidelines should include visual examples to assist retailers in understanding and complying with the regulations. I mentioned it before, but regular training and communication is essential so that retailers can be educated about the distinctions and the legal requirements. Continued regular communication will help to address any ambiguities and keep retailers informed about any changes to the laws or regulations that the Minister or his successors might introduce. The Minister is laughing, but I think it is more that he received a funny text than because of my speech.
Finally, robust monitoring and enforcement is essential to ensure that there is compliance with clause 122. That should include routine inspections and clear processes for addressing violations to ensure that the distinction between displays and advertisements is respected. In conclusion, the clause plays a pivotal role in balancing the rights of retailers to display their products with the necessity of restricting advertising that could promote tobacco and vape usage. We on this side of the Committee—mostly—agree with the clause, and I hope that the Minister will answer some of the queries that we have raised.
Andrew Gwynne
I thank hon. Members for their questions. The hon. Member for Farnham and Bordon just referred to my smirk, and it was indeed a text from somebody asking whether we should define “clappers” in our guidance as well.
To return to the substance of the Bill, the Government amendment is minor and technical; there was a drafting error, and the Scottish Government have since requested the amendment to correct it and to ensure the regulations and the law, as it appertains to England, Wales and Northern Ireland, will be the same for Scotland.
On the subject of “specialist tobacconists”, let me first make a point of clarification for the shadow Minister and the hon. Member for Farnham and Bordon. We are not saying there is specialist tobacco—there is no such thing. Tobacco is dangerous and uniquely harmful. Tobacco is tobacco. There is nothing specialist about it. A very small number of retailers around the United Kingdom sell niche products; they are specialist tobacconists. That is different to the tobacco being special. There is nothing special about tobacco. The tiny number of retailers that sell things such as pipes and cigars exist in a limited number of places and there are already exemptions in the law for them. As we move towards smoke-free, the reality of market economics means that those specialist tobacconists are not necessarily likely to be around at some stage in the future.
The impact assessment that the Government have provided alongside the Bill makes it very clear. With the measures in the Bill, by 2050—25 years’ time, that is all—we are looking at smoking prevalence in the under-30s being nearly zero. Given that reality, the Government believe that the current exemptions for that small number of retailers will continue. Due to the specialist nature of their trade—they focus on a small number of other tobacco products, such as cigars—they only make up a tiny proportion of the UK market. We know that all tobacco products are harmful, so the Government will, of course, keep a watchful eye on it to make sure that we do not inadvertently grow a new market but, at this stage, we do not believe that will happen.
Specialist tobacconists are not permitted to advertise cigarettes or hand-rolling tobacco because those are the most commonly used types of tobacco. The existing bans on tobacco advertising therefore relate to the sale of those products, whether in specialist tobacconists or the local supermarket, so we are really talking about the advertising exemption for other products. That is a continuation of the existing exemption, which has not caused any issues such as younger people taking up smoking. Any advertising the retailers have cannot be visible from outside the premises. That is really important so that a child walking past one of these random Hogwarts-looking shops that sell a product of which they are hopefully not aware will not ever be attracted to what goes on inside.
Dr Johnson
I am pleased that the Minister is considering how shops look from the outside because, when one walks down the high street at the moment, it is not uncommon to find shops where the entire shop window has been turned into a picture of various types of vapes.
Andrew Gwynne
Absolutely—I agree with the hon. Lady that how it looks from the outside does matter. That is why, when these exemptions were put into earlier legislation, it was clear that none of the adverts for these niche products could be visible in the shop window from the outside, precisely to protect future generations from ever being enticed to think, “I wonder what a pipe tastes like, or what a cigar is like,” although I am sure the hon. Member for Windsor could, if he chose, give us an hour-long explanation. That is why the legislation is drafted in the way it is. However—and hopefully the industry is listening to this—the Government will, of course, continue to keep an eye on whether this exemption is working in the way that it has previously worked and that we expect it probably will work in the future. If in the future we have evidence that it is not working, the Government can come back and look at it again. However, as things stand, I commend the clauses to the Committee.
Question put and agreed to.
Clause 120 accordingly ordered to stand part of the Bill.
Clause 121 ordered to stand part of the Bill.
Clause 122
Exclusion for advertisements that are displays
Andrew Gwynne
The clause provides the Secretary of State with the power to introduce regulations that prohibit or restrict the brand sharing of tobacco products, herbal smoking products, cigarette papers, vaping products or nicotine products. Tobacco brand sharing is already prohibited. Brand sharing, also known as brand stretching, is a form of indirect advertising that promotes the use of a service or product by putting its branding on other products or services, or vice versa. For example, using a tobacco product on a logo or a T-shirt or a confectionery company using its branding on a vape are examples of brand sharing if the intent is to promote vapes. There is a clear association between tobacco advertisements and the uptake of products.
Associating nicotine or vape products with a reputable brand may also incentivise consumers, particularly children, adolescents and other vulnerable groups, to buy the product. We want to stop that happening and to protect young people and future generations from becoming addicted to nicotine. I therefore commend the clause to the Committee.
Gregory Stafford
The clause grants the Secretary of State the authority to regulate brand sharing related to tobacco products, vaping products, nicotine products, herbal smoking products and cigarette papers. I think the provision is instrumental in preventing indirect advertising strategies that could undermine the public health efforts in the Bill aimed at reducing consumption of those products.
Brand sharing, in my understanding, refers to the practice of using a brand name, a logo or some kind of distinctive feature associated with a particular product across a range of different product categories. In the context of tobacco and vaping products, brand sharing can manifest in several ways. Cross-product branding uses a tobacco brand’s name or logo on a non-tobacco product such as clothing or accessories to maintain brand visibility despite the advertising restrictions.
On event sponsorships, my hon. Friend the shadow Minister mentioned how we banned the advertising of tobacco products at Formula 1, the cricket and so on. Associating a tobacco or vape brand with events indirectly promotes the brand to a broader audience. Merchandising—the selling or distributing of merchandise bearing the branding of tobacco or vape products—can appeal to various demographics, especially young people.
Jack Rankin
I wholeheartedly support the Government on tobacco, but does my hon. Friend agree with me that there might be an inconsistency being applied here? For example, vaping and nicotine products are being outlawed, but sport is awash with gambling and alcohol brand sharing. Does he not think that that is an inconsistent application of the message?
Gregory Stafford
I do not want to put words into the Minister’s mouth; I am sure he can respond to my hon. Friend when he gets up. I think there has been relative unanimity on the Committee. Unlike alcohol and gambling, to use the two examples that my hon. Friend gave, tobacco is significantly more dangerous. Whereas there are safe levels of indulgence in gambling and alcohol, there is no safe indulgence in tobacco products. I think the Minister has made that very clear. If I have misinterpreted what he said, I am sure he will correct me.
The rationale for the clause is important: it closes advertising loopholes. Traditional advertising channels for tobacco products have been progressively restricted to reduce their appeal and accessibility, especially to young people. However, brand sharing could present a loophole that companies could exploit to continue to promote their products indirectly. By regulating brand sharing, the clause aims to close that gap, ensuring the intent of the advertising restrictions, which we have previously discussed, is fully realised.
Secondly, as with measures throughout the Bill, the clause aims to protect public health. Indirect advertising through brand sharing can subtly influence consumer behaviour, particularly among impressionable groups such as adolescents. Exposure to branding on non-tobacco products or at events can normalise tobacco and vape use, potentially leading to their initiation and then continued usage. Regulating brand sharing is therefore a critical step in protecting public health by limiting the avenues through which these products are promoted.
Once again, the clause brings us into line with a number of international standards. Many countries have already recognised the risks associated with brand sharing and have implemented regulations to address it. For example, the World Health Organisation’s framework convention on tobacco control, which I previously mentioned, recommends comprehensive bans on all forms of tobacco advertising, promotion and sponsorship, including indirect forms such as brand sharing. By empowering the Secretary of State to regulate brand sharing, the UK is aligning itself with international best practices in tobacco control.
However, there are some challenges and considerations. The first is defining the scope of brand sharing. One of the primary challenges I see in regulating brand sharing is establishing clear definitions and boundaries. Determining what constitutes brand sharing requires careful consideration to avoid an ambiguity that could be exploited. I hope the Minister will give us some understanding of what the guidelines and boundaries might look like. Clear guidelines are essential to ensure that both regulators and businesses understand the limitations and comply accordingly.
The definition of brand sharing in subsection (2) involves broad and somewhat ambiguous terms, such as
“anything which is the same as, or similar to, a name, emblem, or any other feature”.
The use of such open-ended language could create uncertainty about what constitutes a violation of the regulations. How precise must the similarities between a relevant product and another service product be in order to be considered brand sharing? It would be helpful if the Minister could help us understand that.
There is also then the balancing of the regulation with commercial rights, which I think my hon. Friend the Member for Windsor alluded to earlier. While the object is clearly to protect public health, it is also important to consider the commercial rights of businesses. Over-restrictive regulation could have unintended economic consequences, particularly, again, for small businesses involved in merchandising or event sponsorship. I have said this before: if the product is legal to consume, we must ensure that whatever regulations we apply are equal and fair for both a large retailer or manufacturer and a small retailer or manufacturer. The regulation is either highly restrictive or highly permissive, but it must be the same. A balanced approach is necessary to achieve the public health goals without imposing undue burdens on legitimate commercial activities.
As I have said before in debates on other clauses, enforcement and compliance potentially bring some logistical challenges. The monitoring of so many various channels, including events and merchandise digital platforms, requires substantial resource. Ensuring compliance among diverse industries and settings necessitates a co-ordinated effort between regulatory bodies, industry stakeholders and the public.
In addition to the questions I have already asked, could the Minister tell us what will be in the accompanying comprehensive guidelines? I urge the Minister to collaborate with public health experts, industry representatives and legal advisers to formulate clear and detailed guidelines on what constitutes prohibited brand-sharing practices. Those guidelines should be regularly updated to address any emerging trends and technologies, which we have discussed previously.
Stakeholder engagement is entirely appropriate and important. That includes with businesses and consumer groups, because we need to understand the regulations and encourage, where possible, voluntary compliance rather than compliance through enforcement operations. Educational campaigns can help stakeholders recognise the public health rationale behind regulations.
Finally, to go back to what I said about having robust monitoring mechanisms, we need to establish some kind of body to oversee and monitor to ensure compliance. Using technology and public reporting mechanisms can aid in identifying the violations and taking prompt action.
In conclusion, I support the intentions of the clause, but the ambiguity around what exactly constitutes brand sharing is something I would like to hear about from the Minister. Potentially, some challenges in enforcement are posed if the clause and the Bill become law.
Andrew Gwynne
I am grateful to the hon. Gentleman for his thoughtful contribution and questions. First, to be clear, we are aligning with the same regulatory framework that was used for tobacco. Tobacco brand sharing was done via regulations following the introduction of TAPA—the Tobacco Advertising and Promotion Act 2002—and the necessary consultation through that process. We will of course consider brand-sharing restrictions for vapes once the Bill has received Royal Assent.
It is also important to say that following the ban on direct advertising, we will consider whether further regulation of brand sharing is needed at that point. If it is deemed necessary, we will need to assess the scope and the impact of any regulations to ensure that they are proportionate—precisely the point that the hon. Member for Farnham and Bordon was setting out. My belief is therefore that it is more appropriate to regulate brand sharing via secondary legislation following consultation, not only to get that proportionate balance, but to ensure that any regulations are well understood, workable and enforceable.
An added issue is that advertising is devolved to Scotland and Northern Ireland—but not to Wales—so the Secretary of State must obtain consent from Scottish Ministers and the Department of Health in Northern Ireland before making any regulations containing provisions that would be within the legislative competence of the Scottish Parliament and the Northern Ireland Executive. We want to have the measures in place across the United Kingdom—so that there is no loophole, with brand sharing north of the border but not south of it, for example—so it is important that we go through the correct procedures to ensure that my counterparts in Scotland and in Northern Ireland are fully content with the direction of travel that we may wish for when it comes to England and Wales, which is the responsibility of the Secretary of State in the UK Government.
Question put and agreed to.
Clause 123 accordingly ordered to stand part of the Bill.
Clause 124
Sponsorship: tobacco products
Question proposed, That the clause stand part of the Bill.
Dr Johnson
The clauses deal with sponsorship. Clause 124 covers tobacco products, and clause 125 vaping, nicotine and other products. Why do businesses get involved in sponsorship? Basically, as a way of advertising their products and to associate them with whatever sponsors them. They might want to associate their products with Formula 1, because it is seen by many as sexy, as the Minister put it—fast or cool, or a good thing to be associated with. They might want to associate their products with other sports such as football or rugby, because athletes who participate in them are seen as healthy, fit and cool. Businesses are therefore associating their brands, which may not be healthy or cool, with those athletes.
On the clauses, the Government’s own impact assessment talks about linking sports sponsorship to smoking. A UK study found that when cigarettes were advertised in motor racing, boys aged 12 to 13 who liked motor racing were significantly more likely to smoke than boys who were not so interested in that sport. Clearly, such advertising works; if it did not, companies would not spend so much money on it. Sports sponsorships and endorsements are highly effective marketing tools.
Sarah Bool (South Northamptonshire) (Con)
That is a very interesting point, and it goes to the heart of commercial contracts. Money talks and money is very powerful, but we must be careful about that when establishing these rules, because the legal system will always find a way to argue. I can imagine some big cases being brought in relation to this if we are not careful.
Dr Johnson
My hon. Friend is, of course, correct.
On advertising and sponsorship, page 101 of the impact assessment states:
“Sponsorship agreements are a form of indirect advertising”—
I agree—
“and there has recently been growing concern about the existence of agreements which promote vaping and nicotine products. These agreements normalise the products and may make them seem cool, having a potentially negative influence on the usage of the products among children and non-smokers.
For nicotine vapes, Ofcom regulations prohibit sponsorship of news and current affairs programmes, and any sponsorship of programming which promotes nicotine vapes. The Communications Act 2003 also prohibits sponsorship of on-demand programme services or a programme on these services which promote nicotine vapes. However, for broader settings such as sports events and teams, music festivals and cultural events, sponsorship which promotes nicotine vapes is permitted.”
It is good that the Minister, in this clause, seeks to prevent such sponsorship—particularly the sort of sponsorship that targets children.
Subsection (1)(a) of both clauses states that a person is party to an agreement entered into “at any time”. That provision does not appear to differentiate between agreements made before and after the Bill becomes law. I understand that the Minister wants to ensure that there is not a sudden flurry of activity in the commercial world to put sponsorship agreements in place before these regulations come into force—we do not want companies to say, “Well, we are bound by this contract for so many years, Minister. We are stuck now”—but does he intend to apply the clause retroactively? Somebody who saw the Bill when it came before the House in March and April, saw it in its other format, or saw the manifesto commitments of all major parties to this Bill in some form or another, may have entered into such agreements already. I would be interested to hear what plans the Minister has to deal with those circumstances.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
In my previous life, I worked in commercial contracts. The hon. Lady can be reassured that a typical commercial contract would require that any participant to it must adhere to the laws and applicable regulations in any jurisdiction in which the contract is governed. Regardless of the Government’s intention, which I am sure the Minister will talk about, there should be an overarching clause in most standard commercial contracts about adherence to applicable laws and regulations in the jurisdiction to which the contract applies.
Dr Johnson
I thank the hon. Gentleman for his contribution. That is another example of why it is important to have a wide spectrum of people on Committees. Of course, that is usually the case, but I am interested to know what the Minister’s intention is with “at any time”. Does he intend it to apply to contracts retrospectively? Presumably he does, but I want to clarify that.
I welcome the constraints on tobacco, vape and nicotine product advertising and sponsorship for this purpose, but I would be grateful if the Minister could answer those questions.
Gregory Stafford
I have some brief points to make on clauses 124 and 125 about the prohibition of sponsorship and the exceptions to it. Clearly, indirect advertising through sponsorship is a subtle form of advertising, associating brands with popular events and activities to enhance their appeal. By prohibiting such sponsorship, the Bill seeks to close that indirect advertising channel, and that is important, especially when it comes to youth protection. Sponsorships often target events frequented by young people, such as concerts and sporting events. I accept that neither of those things are exclusively for young people, but they often have a preponderance of younger people. Preventing such associations reduces the likelihood of youth exposure to brand imagery that could encourage the initiation of smoking or vaping.
I understand why there need to be exceptions to the sponsorship prohibition, and clause 125 mentions some. But although those exceptions acknowledge certain realities—I am not going to pretend that they do not exist—they need to be carefully regulated to prevent abuse. As I said in debates on previous clauses, clear guidelines are necessary to delineate the boundaries of the exceptions. I hope the Minister can once again give us some clarity and assurance on those.
Jack Rankin
In my home office, I have a wonderful watercolour painting of the Lord’s pavilion that celebrates Lancashire winning the Benson & Hedges cup final sometime in the mid-1990s. I know the Minister is a proud Lancashire man, like me, and I agree with him that although we want to see again the days of Lancashire winning cricket tournaments, none of us would want to go back to the days of Benson & Hedges sponsoring sports competitions, so I will support the Minister and the Government on clause 124.
On clause 125, however, I will have to disagree with the Government. As we have already discussed, vaping and nicotine pouches are significantly less harmful than cigarettes. In my view, this clause opens us up to inconsistency across the board. I say that because sponsorship is currently permitted for alcohol and gambling. To me, it makes no sense for vapes to be treated differently. In response to my earlier comments, the point was made that tobacco is uniquely harmful; it is different, in its public health damage, from alcohol and gambling. But I do not fully buy that. I see these things as a spectrum. If people want to say to me that cigarettes are uniquely harmful versus alcohol and gambling, I am prepared to believe that, but I am afraid that when it comes to tobacco and nicotine products and to gambling, these things are a spectrum.
I represent Ascot and Royal Windsor racecourses. Ascot racecourse is in effect the Wembley of racing worldwide, and Royal Windsor is very much in the top tier. I find myself having to defend them quite often when people want to legislate on gambling, because having a cash bet at a racecourse event is a healthy thing to do as part of a day out. That should be treated very differently from somebody in an online casino in the early hours of the morning or on a fixed odds betting terminal. Gambling is a spectrum, and I suggest to the Committee that tobacco and nicotine products are also a spectrum.
I say this with sincerity. The Labour party’s seats may spread much further than they used to, but certainly Labour’s core seats, which perhaps the Minister and the Chair represent—
Dr Beccy Cooper (Worthing West) (Lab)
From a public health point of view, I just point out to the hon. Member that we are basing this Bill on evidence and therefore we are looking at the evidence of tobacco harm, which I think we agree on. There is incontrovertible evidence; tobacco is undoubtedly harmful. People should not start smoking tobacco, and we should assist those who come forward to stop.
In relation to vaping, I go back to a previous comment I made, about the precautionary principle. There is evidence on vaping; there do appear to be some harms associated with vaping. There is not sufficient evidence right now for it to be incontrovertible, but it would be irresponsible not to adopt the precautionary principle that we use in public health.
In relation to gambling, I just urge caution—again, on the evidence. There may not be incontrovertible evidence about gambling, but there are undoubtedly health harms from gambling that we need to look at as we move forward.
Dr Johnson
I just want to add to the point made by the hon. Member for Worthing West about the precautionary principle. One of the differences between tobacco products—for example, cigarettes—and vapes is that tobacco products in the form of cigarettes are relatively more uniform in their component parts than are vapes, and it may take quite a long time to work out which of the chemical components of vapes are harmful, so we do need to be more precautionary with that.
Jack Rankin
I thank my hon. Friend for her intervention and I will seek to address both interventions in my further remarks. The point I was making to the Labour party is that a lot of its Members have made the case quite eloquently that things such as fixed odds betting terminals, which are often aimed at working-class communities and in particular young men, are like crack cocaine. That is an incredibly dangerous part of gambling. I think online casinos fit in that higher band of harm. I suggest that in the broad sense of tobacco and gambling, online casinos would be more harmful than, for example, the odd cigar that I have had recreationally—I have already made that point—so I think there is very much an inconsistency here.
Look at the Premier League, for example. Hon. Members know that there are 20 football teams in the Premier League. Aston Villa FC is sponsored by Betano, and Bournemouth FC is sponsored by bj88; Betano is an online casino, and bj88 is an Asian gambling site. Brentford FC is sponsored by Hollywoodbets.
Jim Dickson (Dartford) (Lab)
We are straying from the point a little, but is the hon. Gentleman aware that the Premier League will shortly initiate a shirt front ban on gambling sponsors? His examples of free advertising and sponsorship of gambling will probably be out of date soon.
Jack Rankin
I am glad to hear that—it sounds like positive news, but I will finish my point and go down the list. Crystal Palace FC is sponsored by Net88, a Vietnamese betting company; Everton FC by Stake, an Australian online casino; Fulham FC by SBOBET, a Philippine gambling company; Leicester FC by BC.Game; Nottingham Forest FC is—
The Chair
Order. I take the point, but I can allow the comparison to go only so far. We are not talking about gambling. Members must try to stick to the debate that we should be having, not to the one that we should not be having.
Jack Rankin
I will bring my remarks to a close, Mr Dowd, but I will make the point that some of these sponsors are online crypto casinos. I would argue that they are worse than vapes, so I think some inconsistency is being introduced in the law.
Let me suggest one way in which we could un-work that inconsistency, which I have seen in the Six Nations. Guinness Zero now sponsors the competition, rather than Guinness. It seems to me that we should allow low or no-alcohol beers to engage in these activities, and I see vaping as analogous. I believe that there is an analogy there, but an inconsistency is being applied by this clause.
I will also make a point about the technicality of some of the clauses—I hope that the Minister can point to some of this later. Clause 125(1)(c) mentions sponsorship of
“a herbal smoking product…cigarette papers…a vaping product…a nicotine product,”
but annex B of the explanatory notes on page 102 mentions
“any device which is intended to be used for the consumption of tobacco products or herbal smoking products”.
Will the Minister provide clarity on what other devices we are seeking to capture? For instance, will tobacco filters fall under the sponsorship ban? Will his Department propose a Government amendment to update the text of the Bill to provide clarity and remove that potential loophole?
Sarah Bool
I will make two points. First, I understand where my h F the shadow Minister is coming from in terms of the questions about enforceability and when these things come into effect. Clause 124(1)(a) states that for tobacco products:
“A person commits an offence if…the person is party to an agreement (entered into at any time),”
which will obviously be consistent; but clause 125(1)(a) states that a person commits an offence only if
“the person is party to an agreement entered into on or after the day on which this section comes into force”.
I can see the point that the Minister is making. Will we see a rush of sponsorship agreements on vaping coming in in the next few weeks before we get this Bill on the statute book? That is a legitimate question to raise, and we should all be aware of that possibility.
Generally, it is important that we tackle and take on seriously the role of sponsorship. I do not think that I am alone in recalling the impact of Pepsi and its sponsorship of the Spice Girls when I was young. Its campaign aimed at Generation X had 92 million cans with the Spice Girls on them, which obviously had a big impact. I will be honest and say that I loved the Spice Girls, but seeing anything like that has a massive impact when we are children, so tackling it is absolutely right. Pepsi sponsors the National Football League, Coca-Cola sponsors the Olympics and I think Carlsberg has always sponsored Liverpool FC, so we can see that brand alignment.
Dr Johnson
I thank my hon. Friend for making the point much more eloquently than I did that there is a difference in the clauses between the days when they come into force. As she is a lawyer who has been involved in contracts, can she confirm that there is no limit to how long someone can enter into a contract? If a contract were entered into in terms of sponsoring vaping or nicotine products before the Bill comes into force, it may last for quite some time.
Sarah Bool
That is a possibility. It always depends on the terms of the contract itself, but in theory they could agree a 10 or 15-year contract and sponsorship deal. It is interesting that this could be one of the overhangs that we see, so we have to be aware of it going forward.
Andrew Gwynne
The clauses make it an offence for a person to be involved with a sponsorship agreement where the purpose is to promote in the course of business tobacco products, herbal smoking products, cigarette papers, vaping products or nicotine products. Anyone convicted of an offence under the provisions may be subject to imprisonment, a fine, or both. Tobacco sponsorship is currently banned under the Tobacco Advertising and Promotion Act 2002. There is a long-standing, well-established relationship between tobacco advertising and tobacco consumption.
Clause 124 restates the current position for a person involved in the sponsorship of a tobacco product. We are consolidating existing tobacco legislation in the Bill to provide a coherent narrative for readers, rather than have it spread over lots of different pieces of legislation. A large part of the Bill brings the legislation into one place, so that from Royal Assent onwards, the go-to place for anybody with any questions about tobacco control will be this piece of legislation, rather than it being dispersed across different Acts of Parliament.
Tobacco sponsorship is already banned, but importantly, the Bill expands the offence to include herbal smoking products, cigarette papers, vaping and nicotine products. The restriction will mean that vaping and other nicotine product companies will, for example, not be permitted to sponsor sports teams, which is something that we have seen in recent years. It might upset the hon. Member for Windsor, but I have to say that not a single child should ever be able to look up at their favourite sports stars—people who should be role models—and see them covered in branding for products that are harmful and addictive. That is the point here.
Dr Johnson
Would the Minister like to comment on whether many of the athletes may feel uncomfortable wearing shirts with such branding on?
Dr Danny Chambers (Winchester) (LD)
To reinforce the point that athletes may be uncomfortable wearing that type of branding, they are not only role models for children, but the epitome of health, fitness and what the human body can achieve. It seems outrageous that they should be advertising harmful products.
Andrew Gwynne
Well, some of them are—the way Man City have been playing this season, I am not quite sure. Anyway, we will get back on to the Bill as quickly as possible.
The ban will apply to agreements entered into after the clause comes into force, two months after Royal Assent. It will be an offence if a contribution is made from either party after the specified date, which will be set out in future regulations. The ban will apply to any agreements entered into after that date, and will therefore not apply to existing contracts. The reason for the two-month period is to provide businesses with advance warning and to prevent them from entering into new agreements.
The hon. Member for South Northamptonshire asked whether this could create a rush to get sponsorship deals in place within that two-month window. That is a fair question, but I think that is unlikely for a number of reasons. First, sponsorship deals are pretty tricky contracts and it tends to take more than two months to reach contractual agreement. Secondly, even if matters were expedited, most clubs already have their deals in place, and they would not replace something when they already have a contractual arrangement for something else. Were that unlikely scenario to play out, we would be looking at only a small number of cases anyway.
When drawing up the regulations, we will have to be careful to ensure that no new contract can be signed, and certainly not for the kind of time period that the shadow Minister set out. That would be really out of the spirit of this legislation and the Government might have to come back to tighten it up further.
Dr Johnson
I have a couple of questions about the rush of people trying to get contracts. First, presumably such a contract would not need to start straight away, so one could enter into a sponsorship agreement for some future period. As the Minister said, the sponsorship agreements are done for this season and being negotiated for the next, but presumably that would not stop a business entering into a contract to provide sponsorship for the next season, or even the season after. When the Government brought in VAT on private school fees—I should declare an interest here—they put in a forestalling measure that prevented anyone from entering into a contract to pay them ahead from, I believe, 28 July last year. They seem to be taking a much more lenient approach to the advertisers and sponsors of vaping and nicotine products than they are to parents wishing to pay for their children’s education.
Andrew Gwynne
The hon. Lady raises an interesting point; I will take that away and look at it. Perhaps with the exception of the hon. Member for Windsor, everyone on the Committee agrees that we do not want our footballers, rugby stars or athletes to be emblazoned with adverts for vaping products, so the more we can do to tighten up the legislation further, the better.
I will just politely correct the hon. Member for Windsor that the term for someone from the historic County Palatine—including yourself, Mr Dowd—is a Lancastrian. My late father was the Lancashire cricket correspondent, first for Cricket Call, which was a BT paid-for service, and then for BBC North West. He was there in 1990 when Lancashire won both the NatWest and Benson & Hedges cup finals—the double at Lord’s. I still have copies of my late father’s book, “Double Delight”. I would say that they are available at all good booksellers, but they are available from me if the hon. Gentleman wants one.
The hon. Member for Windsor made an important point. I had just come out of secondary school in 1990, which shows how long ago it was, but it was pretty commonplace for tobacco companies to advertise at major sporting events like Lancashire cricket matches and others. The fact is that that was a long time ago, and things have changed for the better. The Benson & Hedges cup final, in cricket of all games, is a thing of the past. Hopefully, at some stage in the near future, we will look back at vape sponsorship of football clubs as a thing of the past, because that is where it deserves to be.
Sarah Bool
This is just off the top of my head, but on a technical point about clause 125(1), in terms of vape sponsorship, a person will be guilty of an offence only after the provision comes into force. I appreciate that there is the two months, but they also have the window of time while the Bill goes through Parliament, so they potentially have a couple more months for that.
I do wonder about how this is going to work in practice, because, in theory, a company that is offering sponsorship—if they enter into that agreement now—will not be in trouble for the next couple of years for doing that, yet under preceding clauses anyone who designed or printed material for any of those sponsorship deals would be guilty of an offence. We suddenly have a position where, potentially, the sponsors themselves are not guilty of an offence while the actual designers, and those who are publishing the sponsorship material, are. That is an interesting nuance.
Andrew Gwynne
The hon. Lady makes a really important point. When we look at things in isolation, as we tend to do with these clauses, we look at them through a narrow prism, but this Bill contains a wide range of powers and legal responsibilities that will help to make things like those sponsorship deals incredibly difficult before the legislation is in force. It is very clear that, after Royal Assent, the requirements that the hon. Lady rightly sets out in terms of advertising, printing, publishing and so on will apply, and separately there will be this two-month window that we are giving, but the whole of the law needs to be read together. Hopefully that gives some assurances on why we believe that these measures, taken in the round, are as robust as they can be.
Mr Barros-Curtis
I am grateful that the Minister will take away the point raised by the hon. Member for South Northamptonshire, discuss it with officials and come back to us. When doing so, it will be worth reflecting on the fact that, as the hon. Lady knows from her previous work, a lot of commercial contracts tend to have force majeure clauses, which may well envisage legislative changes in countries relevant to the jurisdiction of the contract that could impact the commercial value of that contract. This may not be as big a problem as some fear, but it is something to be looked at as part of this work. Of course, given that the average wealth of a Premier League club is £1.2 billion, I am sure they would survive such a clause being activated in those examples.
Andrew Gwynne
My hon. Friend makes a very good point. I am grateful that we have somebody from the legal profession on this Committee to advise this Minister, who is not a lawyer, on provisions that may well be put into any kind of contractual discussion that may be starting now, and to alert the parties to such a contract that the law in the four jurisdictions of the United Kingdom is changing and will therefore affect any agreements that are being put into place in advance of that legislation coming in. That is an important point.
Mr Barros-Curtis
There is one further point that I wish to make. The hon. Member for South Northamptonshire and the shadow Minister were talking about the display of logos or company names on football shirts as an example of the practicalities of enforcement. Would my hon. Friend like to comment on the fact that, in European games, when teams that are sponsored by, for example, an alcoholic beverage or gambling company are playing countries where that is prohibited, the shirts of the relevant football team tend to have black tape over the logos, to prevent them from being displayed in the ground and on TV across the world.
Andrew Gwynne
My hon. Friend, as well as being a sound lawyer, is a sound mind reader, because that was precisely my next point. Rightly, Members are testing the legislation. The purpose of this Committee is to tease out how we expect the legislation to work. When it comes to sporting events, from time to time there will be English, Welsh, Scottish and Northern Irish teams playing in other countries, and more importantly teams from other countries playing within the United Kingdom. My hon. Friend rightly points to the existing practice that where something is illegal, those images are covered up.
Gregory Stafford
I am going to test the Minister’s legal knowledge now—perhaps his hon. Friend the Member for Cardiff West or one of his officials can come in and save him. Is the Minister saying that when that happens in other countries, it is due to a legal requirement? I understood that it was to be culturally sensitive to the nation we were playing in, rather than there being a legal requirement—for example, covering up alcoholic drinks in a country that does not approve of alcoholic drinks. Conversely, in the Bill and in the regulations, is there something that says that those sponsorships, which would be vapes or tobacco in this country, would require some sort of covering up or a change to a kit with vapes advertised on it if a country were playing here?
Andrew Gwynne
I am grateful to the hon. Member for that question. The answer is going to be the stock answer that I have given throughout—that much of this detail will be down to how we draft the regulations and so on. The law of the United Kingdom and its four respective jurisdictions of England, Wales, Scotland and Northern Ireland is the law of the land. This Parliament, in passing this legislation, expects the law of the land to be adhered to. If the law of the land is not adhered to, there are strong enforcement measures and penalties for those not applying the law as passed by Parliament.
Going back to existing contracts, it is really important to emphasise the legal advice that the Government received in the drafting of the Bill: that we need to be proportionate and pragmatic and we cannot retrospectively legislate to stop existing contracts. It is really important that we avoid retrospectivity in the design of the clauses in front of us, because the principle that underpins our legal system is that the law is prospective, not retrospective.
Mr Barros-Curtis
I appreciate that, and I completely agree. Learned colleagues and others with legal training will probably remember the auspices of what Parliament can and cannot do. I appreciate that this is something the Minister will have to take away but, while fully agreeing that Parliament cannot be retrospective in the legislation it passes, is it not the case with commercial contracts that there will typically be a requirement for the parties to adhere to the laws that apply to the jurisdiction and to the parties themselves?
Of course, those laws can change in the future. It is not that it is a day one obligation at the time the contract is entered into and then is never checked again. It has to be an ongoing obligation. While I fully understand the point and agree with what the Minister is saying, can he take away that point about the ongoing obligation and the advice? That way, people who have these types of contracts can rely on knowing whether they are or are not in breach of the Act—if, as we all hope, the Bill gets Royal Assent and becomes an Act.
Andrew Gwynne
My hon. Friend sets out a really important point. I am happy to take that away for officials to look at. We want to ensure that companies that currently sponsor sports kits are no longer able to do so, and that sports clubs that have entered into such contracts are not allowed to extend them beyond the dates of their current existence. His brain is much more legalistic than mine, and we do not want the intention behind the law to be circumvented using legal routes that the best lawyers in the land will probably use to try to find a way around it. I will ask my officials to look at that in more detail, because it is a really important point. I hope he accepts that response.
Dr Johnson
I understand the point that the hon. Member for Cardiff West is trying to make about a standard clause being that if a contract breaches the law, the contract falls. In clause 125, however, the Minister appears to be giving a company that promotes vapes by sponsorship an opportunity to enter into a contract, before the legislation comes into force, that would be legal afterwards.
Andrew Gwynne
The shadow Minister is right. There will be a narrow window in which that will be possible—[Interruption.] She asks why, and it is because once the Bill receives Royal Assent, it will bring in a two-month window. That is how the law is shaped, to give us the scope to get these measures right and ensure that we make the framework as watertight as my hon. Friend the Member for Cardiff West wants. We believe that that is the proportionate way forward. We cannot make retrospective decisions; if contractual arrangements are under way at Royal Assent, an immediate cut-off could leave the Government open to challenge.
Sarah Bool
I understand that two-month period, but does it also apply to the earlier provisions on the creation of offences relating to publication? If we had some alignment there, neither party could potentially be in breach. That is merely a technical point, however.
The other point—perhaps for when the Minister goes back to the Department—is about force majeure, which the hon. Member for Cardiff West mentioned and which I would like more investigation into. Force majeure concerns acts of God, or something unexpected. I think lawyers would argue that a Government Bill was expected and foreseen, so there would have to be some other form of break clause or right. This debate is getting far too technical for this forum, but it is perhaps something that the Minister can take away.
Andrew Gwynne
As I said to my hon. Friend the Member for Cardiff West, we will take all this away and look at it in detail, and we will come back to Members. I am just about legally savvy enough to understand the point that the hon. Lady is making that a break clause or something like it would probably be required, because the coming into law of the Tobacco and Vapes Bill on Royal Assent is expected—it is not an act of God, and it will not come as a complete shock and surprise.
Finally, clause 133 allows us to extend all of part 6 to cover devices that enable a
“tobacco product to be consumed”
or
“an item which is intended to form part of such a device”,
but that are not in the Bill.
Sadik Al-Hassan (North Somerset) (Lab)
On the conversation we were having previously, does the reference in clause 125(3) to a “specified date” mean that we can have an open discussion with the Secretary of State in the next stage of the Bill’s passage about deciding at what point the provision will apply to the contracts?
Andrew Gwynne
I will take that away, because I do not know the answer off the top of my head. In bringing forward regulations, the Secretary of State and I will want to ensure that we get these measures right. That is why there are statutory duties to consult on secondary legislation throughout the Bill. That will ensure that we get these measures and the details right, and that there will hopefully be no ambiguity about the different dates for the offences of printing, publishing and distributing advertisements or about those related to sponsorship deals and the production of the kits that come out of them. With that, I commend the clauses to the Committee.
Question put and agreed to.
Clause 124 accordingly ordered to stand part of the Bill.
Clause 125 ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned. —(Taiwo Owatemi.)