Tobacco

Philip Davies Excerpts

1st reading: House of Commons
Tuesday 30th October 2018 Commons Chamber

[Philip Davies (Shipley) (Con)]

To be clear, while I rise to oppose the Bill, I do not intend to divide the House. I do not intend to speak for long either, as I know that many hon. Members want to speak in the Budget debate, but it is important to put the Bill that the right hon. Member for Rother Valley (Sir Kevin Barron) proposes into some context. I commend his dogged determination to reduce the number of people who smoke, but my fear is that, with this Bill, the points that he raises are either unwelcome or largely not necessary.

Yesterday the Chancellor again increased the tax on tobacco products by a rate above inflation, which means that the tax on some products is now more than 90% of the retail price. Around £12 billion of excise revenue is raised from tobacco products in the UK each year, and that does not include VAT. Each year the Government increase the level further above inflation. It was supposedly Louis XIV’s Finance Minister, Jean-Baptiste Colbert, who famously said that the art of levying taxes is to pluck the goose so as to get the maximum amount of feathers with the minimum amount of hissing. That is the balancing act that the Government have to perform every year with duties, including tobacco duty, except in this case the only hissing that we can hear is the sound of the criminal gangs who smuggle illegal tobacco into this country rubbing their hands with glee. If the Government thought that they could raise any more from the tobacco industry, I think that they would already be doing it.

The right hon. Gentleman proposes that the House should require the Secretary of State to report on how he is making the tobacco industry pay for smoking cessation services. One is tempted to ask how much more than £12 billion the right hon. Gentleman wants or expects, but of course what he is calling for is some kind of levy on tobacco, which he and a few others have repeatedly asked this and previous Governments about in the House. Indeed, such a question was asked only last month by the hon. Member for York Central (Rachael Maskell), so clearly Members are having no difficulty in holding the Government to account on this issue, and I certainly do not think that we need a new Bill to help us.

The hon. Lady received the same answer in September that the Government have given many times before: a levy would be passed on to consumers and so would have the same effect as a duty increase, which is happening anyway, except for the fact that a levy would complicate the tax system, increase the administrative burden on Her Majesty’s Revenue and Customs, and create uncertainty for consumers and businesses. It was a bad idea in 2016 when the right hon. Member for Rother Valley presented a petition to the House about it, it was a bad idea last month, and it is still a bad idea today. The right hon. Gentleman keeps banging this drum, but perhaps it is time to change the tune.

On the advertising and promotion of alternatives to smoking, such as e-cigarettes, the right hon. Gentleman will be aware that the Government have already committed to examining how they can better support smokers with clear information after we leave the EU and once we are no longer held back by the outdated thinking of the EU’s tobacco products directive—yet another benefit of leaving. The best thing that a smoker can do, of course, is to quit smoking altogether, but it is obvious that those who cannot, or do not want to, deserve to be told the truth about e-cigarettes and other products that could offer them a less harmful alternative. At present, the law prevents manufacturers from giving them that information, but I hope that once we leave the EU, we will be able to change that.

Not all aspects of the tobacco products directive are bad, however; some offer real protections to consumers and deserve to be preserved after we leave the EU. For example, the right hon. Gentleman will be aware that the directive requires the manufacturers and importers of e-cigarettes and novel tobacco products to share with the Government any market research information that they hold on those products when they place them on the public register of legal products. That seems to be a very proper measure to allow the Government to monitor what is happening in this marketplace. As long as that measure remains in place after we leave the EU, it strikes me that we see another part of the right hon. Gentleman’s proposed Bill that is simply not needed.

Finally, the right hon. Gentleman asks for the introduction of a tobacco licensing scheme, with tough penalties, but again that simply is not needed. The Government are already at work on implementing a Europe-wide system to track and trace tobacco products. That system will require that manufacturers, importers, wholesalers and retailers are all registered on a public database as “economic operators” in order to handle tobacco. That is a de facto licensing scheme anyway, and it does everything that is needed to support trading standards enforcement against unscrupulous criminals who sell smuggled tobacco or sell tobacco to children—with a bit of luck, we will see a few more of them behind bars as a result. I certainly hope that anyone who is caught committing such crimes would be automatically struck off the list and rendered unable to legally handle tobacco.

As I said, the right hon. Gentleman deserves our respect for his tireless and relentless work to reduce smoking. Although it is not my intention to divide the House, I thought that it was important to put on record the context of his proposed Bill and to point out that its measures are either unwelcome or, more often, not necessary.

Question put (Standing Order No. 23) and agreed to.

Ordered,

That Sir Kevin Barron, Norman Lamb, Mark Pawsey, Liz Kendall, Jess Phillips, Crispin Blunt, Mr Charles Walker, Mr Kevan Jones, Adam Afriyie and Tonia Antoniazzi present the Bill.

Sir Kevin Barron accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 23 November, and to be printed (Bill 280).

[Chris Bryant (Rhondda) (Lab)]

On a point of order, Mr Speaker. We have just agreed that the Bill is theoretically going to be read a Second time on 23 November. Unfortunately, on that day, 150 private Members’ Bills are going to be considered, 148 of which—now 149—I suspect will not be reached. Under our Standing Orders, the Government have to provide us with 13 days in a Session for private Members’ Bills. They guaranteed that they would provide additional days in this Session, because it is a two-year Session. They are considering having a two-year Session next time as well. Would it not be a good idea if they announced some additional days for private Members’ Bills—today, for instance?

[Philip Davies]

Further to that point of order, Mr Speaker.

[Mr Speaker]

Order. The Clerk has consulted his scholarly cranium, on the strength of which—and it is a very considerable strength—he was about to proffer me some advice, to which I will listen attentively if I can hear it. In any case, I have a view on what the hon. Gentleman has said, but let us first hear the point of order from the hon. Member for Shipley (Philip Davies), if it is on the same matter.

[Philip Davies]

It is on that very point, Mr Speaker. Am I not right in thinking that the Standing Orders state that there “shall be” 13 sitting days in a Session for private Members’ Bills, not that there will be a minimum of 13 days? Would it therefore not be quite proper for this Session to have just those 13 days, as that is what the Standing Orders clearly set out?

[Mr Speaker]

Conformity with Standing Orders is a very good starting point, but in reality it is possible for there to be differences of opinion about their interpretation. Recalling the sequence of events earlier in this Parliament, I believe that the Government nodded their recognition of the fact that a two-year Session had an implication for Opposition days and private Members’ Bills, and that therefore there would need to be an explicit commitment to guarantee the requisite number of days. I am not aware that that has yet happened, and that, I think, is at the heart of the hon. Gentleman’s point of order. If he is asking if I think it would be a good idea for there to be an announcement, my answer is: it might very well be, and if there is to be such an announcement, it would probably be a good idea for it to be sooner rather than later, if for no other or better reason than that it would mean he did not have to exercise his knee muscles again by rising to his feet to raise this perfectly legitimate point. I think we will leave it there for now, but I am grateful to both hon. Members for their points of order.