Christmas Adjournment

Martyn Day Excerpts

Tuesday 20th December 2016 Commons Chamber

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

You will be pleased to know, Mr Deputy Speaker, that I will not require the full 10 minutes.

It is a pleasure to take part in this wide-ranging and popular general debate, and I am grateful to the Backbench Business Committee for giving me the opportunity to do so.

Among the numerous issues to have graced my casework over recent months—perhaps one of the more interesting —is the World Health Organisation Protocol to Eliminate Illicit Trade in Tobacco Products, sometimes referred to as the Illicit Trade Protocol, or ITP. As many Members will know, the World Health Organisation Framework Convention on Tobacco Control is the world’s first and only public health treaty. However, the problem of illicit tobacco was held to be so severe that a new, subsidiary treaty under the FCTC was required, namely the ITP. It was concluded in 2012, and currently covers 24 state parties plus the European Union. Forty parties are required for the ITP to come into force. It was signed by the United Kingdom Government three years ago, but so far it has not been ratified by the UK. In recent weeks, I have raised this subject a number of times through parliamentary questions, both oral and written. I am grateful to the Financial Secretary to the Treasury for her helpful and constructive answers, which I received yesterday.

Those who have raised this important issue with me feel that the UK Government are setting a poor example and dragging their feet on ratification of the protocol on illicit tobacco and that as a consequence they are threatening public health and costing the Treasury millions of pounds in lost revenue. The latest HMRC figures for 2015-16 estimate that the UK illicit market share for cigarettes is 13% and for hand-rolling tobacco 32%. The tobacco tax gap for this period was estimated to be £2.4 billion. Although that represents a significant improvement over the last decade or so, the issue remains a key public health concern. I say that not because illicit tobacco is necessarily more harmful than that on sale in shops, but rather because it bypasses tobacco control measures designed to increase prices and prevent tobacco sales to children.

As I have mentioned, I hope that the parliamentary questions and answers go some way towards addressing the concerns over the Government’s failure to act on the ITP. I look forward to the text of the protocol being laid before Parliament as a Command Paper, and would be grateful to Ministers if we could have an indication of a likely timescale for that.

I press the point because I believe that the ITP will genuinely help to tackle the illicit trade problem. Among its measures designed to combat the illicit trade is a worldwide tracking and tracing scheme for tobacco products. The ITP explicitly requires Governments to take responsibility for control measures and not to rely on industry self-regulation, which has failed to deliver. This track-and-trace scheme is intended to prevent the tobacco industry from participating in, or turning a blind eye to, smuggling. The scheme must be independent of the industry if it is to be effective.

Earlier this year, the big tobacco companies sold Codentify, the anti-smuggling track-and-trace system, to a third party for a token 1 Swiss franc, clearly in an attempt to comply with EU and World Health Organisation rules on independence. However, it has been claimed that the new owner is merely a front company and that the system is still under the effective control of the tobacco firms. If so, this would not fulfil the requirements of the ITP for independence. Some industry insiders have also highlighted that Codentify is ineffective as a track and trace system as it uses a combination of unique encrypted codes along with other codes that are visible and easy to forge. I trust that Ministers will have that on their radar as this issue moves forward.

In conclusion, the protocol to eliminate illicit trade in tobacco products is a global solution to a global problem. It is important that we play our full part, and in the spirit of Christmas I welcome the Government’s commitment to ratification. I am, however, impatient and keen to see progress. I look forward to hearing the Minister’s response, although I will not envy him as he tries to sum up today’s wide-ranging debate.