Tobacco and Vapes Bill Debate
Full Debate: Read Full DebateLord Scriven
Main Page: Lord Scriven (Liberal Democrat - Life peer)Department Debates - View all Lord Scriven's debates with the Department of Health and Social Care
(1 day, 19 hours ago)
Grand Committee Baroness Fox of Buckley (Non-Afl)
        
    
    
    
    
    
        
        
        
            Baroness Fox of Buckley (Non-Afl) 
        
    
        
    
        My Lords, I stand with some trepidation on this one, but I will give it a go. I have some reservations about this series of amendments. On Amendment 12, I have a lot of sympathy with having more transparency as a general principle, but I ask the noble Baronesses, Lady Northover and Lady Walmsley, how we would deal with having a dangerous precedent on the commercial confidentiality and sensitivities, for any company, and what can and cannot be revealed. Asking for information is one thing; mandating it is a whole different ball game. Many companies hold data close to themselves, as they are allowed to, because they are private entities. It is a legal thing to do and there are reasons, beyond malevolent ones, why that might occur.
I am particularly concerned about Amendments 192 and 194. As the noble Earl, Lord Russell, noted, tobacco companies already pay, or are responsible for, substantial duties that are collected. I am not sure that I entirely agree with the “polluter pays” principle—or, at least, it is quite complicated. It sounds virtuous, and in some instances I might well support it, but when I was reading these amendments I kept thinking, perhaps because of my left-wing, Marxist background, “Oh my God, this is a new form of legal wealth distribution by force”. It felt to me as though we were saying: “Forget economic growth. We’re just going take more from legal companies, but it’s all right because they are evil companies”.
In the words that the noble Earl, Lord Russell, used about his more specific amendments on what the money should be used for, if I may put it that way, I recognised an argument that I came across from Cancer Research. It has been very helpful in its briefings on the Bill and, in many instances, I agree with what it is putting forward. But in this instance, it said:
“At a time when funding for public health initiatives is limited, this proposal raises money without directly costing the taxpayer. Given the current economic challenges, this presents an opportunity for the Government to act decisively, should it choose to seize it”.
 
I kept thinking of this as a way of avoiding crises in public health, or in the NHS, by simply not resolving what should be an adequate health service for everyone while turning to private companies instead and trying to compensate for that. That is a dangerous precedent. Private companies should not let the state off the hook for what it should be doing, because those public health services should be provided by the state, regardless.
The fact that there is an economic crisis at the moment cannot just be meted out to companies that we do not like. I realise that tobacco companies have for some time been treated as especially evil, malevolent and harmful, but if you enter other debates and read the briefings of lobbying groups on other issues, you will hear similar moralistic arguments used about sugary foods, junk food, alcohol, gambling and even fossil fuels. I read a fascinating paper the other day which basically said that fossil fuels were killing us all and should be closed down, and so on. That is the kind of language being used.
I therefore worry about setting a precedent for a moralised hierarchy of legislators deciding which are the evil companies, and who gets to decide that, with a punishment then meted out. I say this because, briefly, I was a bit disturbed the other day at some mention of a report by KPMG. The data in it was dismissed as being from a report produced for Philip Morris, the tobacco company, as if that somehow closed down any possibility of a discussion—that having said that, the report could be laughed off. The idea that all you have to do is say the name of a tobacco company, and then close down valuable information, is quite dangerous.
It thought that was particularly unfair on KPMG. I am not necessarily a great fan of the big four accountancy firms, but they certainly have reputations. To write them off as being in bed with the evil Philip Morris, so that we take no notice of what they do, seemed a little unfair. If that were the case, have the Government let KPMG know that this is their view of it—especially since KPMG is a supplier to the Government, as I understand it, focusing on Civil Service training and economic matters? KPMG might have a case to answer on those things, but it should not be written off as a company because it has done some work for Philip Morris.
Neither is it appropriate for our discussions to always assume that everything a tobacco company says or does is evil because of the nature of the product. The product is harmful and contributes to cancer in many people—I know that—but if this Government believe that the tobacco companies are so uniquely evil that they are killing the population, they should have the courage of their conviction, make them illegal and ban them, not take their taxes and have it all ways.
 Lord Scriven (LD)
        
    
    
    
    
    
        
        
        
            Lord Scriven (LD) 
        
    
        
    
        My Lords, it is a great pleasure to follow the noble Baroness, Lady Fox. Normal service is probably about to be resumed. I am on a different page from her on this issue.
These amendments give me the opportunity to clarify my position on the Bill. I fear that my previous opposition to the age-escalator provision in the Bill, meaning that some adults will never be able to purchase tobacco legally, has been misrepresented by some as a general objection to any form of regulation or restriction on tobacco. I state clearly that that is not the case. That is why I support all amendments in this group—Amendments 12 and 148, tabled by my noble friend Lady Northover, Amendment 192, tabled by the noble Lord, Lord Young, and Amendment 194 in the name of my noble friend Lord Russell.
I come back to something the noble Baroness, Lady Fox, said regarding the point made by my noble friend Lady Northover about data. If this was unique, some of those issues would need to be explored further, but this is not a first. For example, the water and energy companies have to give to the regulator investment details, asset details, investment plans and details of their costs and profits. This happens without commercial sensitivities going by the way. The amendments, particularly Amendments 192 and 194, generally represent a necessary and proportionate intervention to correct a profound fiscal and health imbalance, which is weighted too heavily in favour of the tobacco industry. The tobacco industry in the UK operates with a near monopoly, as many noble Lords have said, on selling an addictive product. The market structure allows them to generate excessive profits. They extract nearly £900 million per year in profit, while contributing little in terms of corporate tax to the Exchequer.
Simultaneously, the societal costs of smoking are vast, as the noble Lord, Lord Young, and my noble friend Lord Russell identified, with the NHS bearing the immediate cost of approximately £1.8 billion per year. The current system places the entire tax burden on the consumer and the taxpayer, while the manufacturer enjoys excessive returns. That is not only a moral wrong but an economic failure that government has a duty to correct.
 Lord Scriven (LD)
        
    
    
    
    
    
        
        
        
            Lord Scriven (LD) 
        
    
        
    
        That is an important point. When will the consultation end? Will we have its results before we are asked to give this Bill its Third Reading?
 Baroness Merron (Lab)
        
    
    
    
    
    
        
        
        
            Baroness Merron (Lab) 
        
    
        
    
        I will gladly come back to the points that the noble Lord has just made, if he will allow me. In the meantime, there is no doubt as to the intention and ambition of each of the amendments before us, but it is the Government’s view that they either are unnecessary, due to existing powers, or would risk introducing complexity and unintended consequences; they would not do the job that I know we all want them to do. Once again, I assure noble Lords that we remain committed to reducing smoking, to improving public health and to ensuring transparency around the tobacco industry’s activities.
In so doing—this is perhaps the overall point of this group—I can say that the answer to the question from the noble Lord, Lord Scriven, it is 3 December 2025 on which we can set that date for the call for evidence  to close. What I am trying to say to noble Lords is that that is very soon. In answer to the noble Lord’s concerns about how long these things might take—
 Lord Scriven (LD)
        
    
    
    
    
    
        
        
        
            Lord Scriven (LD) 
        
    
        
    
        My question to the Minister was slightly different. It was not about when the consultation will close. It was about whether we would have the results and the Government’s view before Third Reading. That is the critical question—not, “When will the consultation close?”
 Baroness Merron (Lab)
        
    
    
    
    
    
        
        
        
            Baroness Merron (Lab) 
        
    
        
    
        The noble Lord will be glad to know that I am reminded of what I should know already: matters in relation to the dates for Third Reading are matters for business managers. It will also depend on how much progress we make.