Tobacco and Vapes Bill (Seventh sitting)

Jack Rankin Excerpts

Committee stage
Thursday 16th January 2025 Public Bill Committees

[The Chair]

I remind the Committee that with this it will be convenient to discuss the following:

Clause 62 stand part.

Clause 80 stand part.

[Jack Rankin (Windsor) (Con)]

I made my substantive points in the previous sitting, so I just want to summarise my position and conclude. Clauses 15, 62 and 80 concern the free distribution and discount of products. I support the Government wholeheartedly on tobacco products, but I tried to make the point that I believed there was a legitimate and responsible avenue for vaping and nicotine products to offer such discounts, particularly in the example that I gave, where a responsible vaping company was in partnership with the NHS to help to achieve the aim of the Bill of a smoke-free generation. I cannot support clauses 15, 62 and 80 in their current form and intend to vote against their standing part of the Bill.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Clause 15 makes it an offence to give away or discount any vape product. That is important because discounts encourage us to buy more things. That is what they are there for; it is what promotions are for. They encourage us to buy things that we did not want or need. We do not want people to consume excessive quantities of vapes that they do not want to have, but that does happen. A cursory glance on the internet shows that numerous websites are advertising vape discount codes and vouchers offering 10% or 15% discounts on vapes, as well as giftcards that are readily available for online purchase. The clause therefore replaces section 9 of the Tobacco Advertising and Promotion Act 2002 and extends its scope, as there are currently no restrictions on businesses freely distributing nicotine and non-nicotine vaping products, cigarette papers and herbal smoking products.

In 2023 the former Prime Minister, my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak), created an illicit vapes enforcement squad, backed by £3 million. It was designed to close the legal loophole that allowed the vaping industry to provide free samples of vapes to be distributed regardless of consumer age. That was patently unacceptable, and I welcome the action that the previous Government took on the issue. I point out that giving away vapes was pretty common. In fact, my own parliamentary staffer went to a promotional event on vaping held in Parliament itself, in this very House, and was given free samples of Vuse vapes. I have been made aware by staffers that similar events take place outside Parliament, so I think that this is a useful clause and I will support it.

--- Later in debate ---

[Dr Johnson]

Given that is what the Act does, it will be important for the Minister to consider the timing of the repeal. There are comprehensive powers under those provisions, and it will be important to ensure that Welsh Ministers are given ample opportunity and time to put in place new provisions to replace them, before the measures in this Bill come into force.

Could the Minister explain when the changeover date is, and whether he has spoken to Welsh Ministers to ensure that there is adequate time for those provisions to be put in place? He might also respond to the question of my hon. Friend the Member for Farnham and Bordon about whether there is any restriction on replacing any aspects of the current Welsh legislation with the new legislation that we are discussing.

Clause 85 prohibits retail sales of tobacco products without a licence in Northern Ireland. To apply the measures that we have previously discussed to Northern Ireland, it inserts new measures after section 4 of the Tobacco Retailers Act (Northern Ireland) 2014 that will prohibit the sale of tobacco and nicotine-related products without a licence. That brings Northern Ireland legislation in line with the proposed UK legislation that we have just been discussing.

Proposed new section 4A of the 2014 Act introduces a clear prohibition on the retail sale of tobacco and nicotine-related products without appropriate licences. Under this section, individuals are not permitted to engage in the sale, exposure for sale or possession of relevant products unless they hold a personal licence. That licence is required for anyone involved in retail activities such as selling, displaying or possessing tobacco, vaping products, herbal smoking products or nicotine products. The personal licence must be granted by the licensing authority and the individual must comply with the conditions outlined in the licence.

The use of premises for activities such as storing relevant products, exposing them for sale or supplying them to customers is prohibited unless a premises licence is obtained. That ensures that the location used for the sale of these products is also licensed and adheres to the prescribed standards. The premises licence is granted by the licensing authority and outlines the specific conditions under which the premises can operate.

There is provision for regulations to create exceptions to those prohibitions in certain circumstances. The Department responsible for legislation is required to consult relevant stakeholders before making regulations relating to the granting of personal premises licences, which is of course sensible. Those regulations would ensure that the licensing system remains flexible and adaptable to the needs of businesses and public health objectives.

Proposed new section 4B of the 2014 Act establishes the penalties for breaching the new licensing requirements. If a business or individual operates without the necessary personal or premises licence, they commit an offence under that section. In line with England and Wales, providing false and misleading information in an application for a licence is also an offence. If someone knowingly submits incorrect information, they can face legal consequences, with a fine on summary conviction of up to level 5 on the standard scale. The section aims to ensure the integrity of the licensing process by holding individuals and businesses accountable for providing truthful information.

The court has the power to order the forfeiture and destruction of relevant products involved in an offence and of any containers used to store them. That gives the court authority to remove illegal products from circulation and deal with them in a manner it deems appropriate, thereby enforcing compliance with the new regulations.

Proposed new section 4C of the 2014 Act allows local councils to impose financial penalties on individuals or businesses that breach conditions attached to the personal or premises licences. Those breaches must not constitute a criminal offence under proposed new section 4B, which provides for an offence for lying. If a breach occurs, the council can impose a penalty, with the amount of the fine not exceeding £2,500. That serves as an alternative to criminal prosecution for more minor violations, allowing for a more flexible approach to enforcement. The section also allows for adjustments to the penalty amount to reflect inflation, ensuring that fines remain relevant over time.

Schedule 2 to the 2014 Act provides further details on the implementation of those financial penalties and outlines how the penalties will be enforced and collected. That mechanism enables councils to take swift action against minor breaches without resorting to criminal prosecution. Schedule 11 on the retail licensing scheme in Northern Ireland specifies the procedures for granting personal licences, including who may apply and the conditions that must be met for approval.

Schedule 12 provides for the financial penalties for breach of retail licence conditions in Northern Ireland. It outlines the process for granting premises licences, with particular attention paid to ensuring that premises used for sale and storage of tobacco products meet the necessary standards for health, safety and law compliance. Any proceeds received from financial penalties in Northern Ireland must be used by the council for the purpose of its functions under the Tobacco Retailers Act (Northern Ireland) 2014 or for other functions that the Department of Health in Northern Ireland may specify by regulation. That is a little different from the rest of the United Kingdom.

Schedule 13 sets out consequential amendments to the existing legislation to support the introduction of a new licensing framework. I will not go through those in detail.

[Jack Rankin]

In my remarks to date, I have tried to support responsible vaping businesses, which I think are legitimate, and to champion vaping as a smoking cessation tool. These clauses are not in contradiction of that principle. We should support better efforts to regulate the vape market and in particular to stop youth access. Introducing the licensing concept for vapes is consistent with the Government’s intent and the principles that I wish to support.

I wish to make some suggestions as to how the licensing regime should best be set up, and I hope that the Minister will talk about his intent in advancing the regulations. The UK responsible vape sector has talked sensibly about licensing. We have the existing framework of the Licensing Act 2003, which covers the sale of alcohol; that is the kind of approach we should take to minimise excessive regulation and make it easy for people to comply. The licensing fee should be set at a rate that is at least cost-neutral to local authorities—I think everyone across the Committee realises how stretched those local authorities are—and it should cover both administrative and enforcement costs. I hope the Minister will comment on that point.

On the proximity of licensed premises to certain other locations, I encourage the Minister to try to mirror the alcohol regulations in order to provide a measure of consistency, so that legitimate premises with experience of selling age-related products can do so in the least bureaucratically complicated way. I invite the Minister to consider those points.

[Sarah Bool]

I want to build further on the points made by my hon. Friends the Members for Sleaford and North Hykeham and for Windsor.

The licensing scheme has been welcomed across the board, which is interesting. One vaping company, Evapo, had some suggestions. I thought it was interesting for it to put those out at this point, because some of the detail is still yet to be decided and it will be done through regulations. It mentions in written evidence that

“The licensing scheme should charge retailers £750 per store per year: Licences for over 55,000 convenience and vaping stores could raise upwards of £50 million, more than enough to fund Trading Standards’ enforcement of these new laws. A manageable fee for retailers would incentivise good actor participation, while disincentivising bad actor behaviour. It would also make it more cost effective to follow the law, stymieing rogue traders from shrugging off rare fines to sell illegal, dangerous products to underage people.”

I would be interested to hear more from the Minister about what those fines may be.