An Australian independent senator is pushing for the introduction of minimum pricing for cigarettes to counter British American Tobacco’s launch of what is said to be the lowest priced licit cigarette on the market at A$13 for a pack of 25, according to a News Interactive Network story.
‘Senator Nick Xenophon has accused the tobacco giant of circumventing laws to discourage people from smoking,’ the story said.
Xenophon’s concern seems to be that BAT is using pricing as a way of keeping people smoking even though they are faced with the graphic images of the standardized tobacco packs introduced in Australia in December 2012: that the fear invoked by the terrible images is assuaged by a lower price.
He plans to ‘consult with public health experts on the most effective disincentive price but wants to see a minimum of $20 for a 25-pack’.
This was the best option to combat a “deeply cynical” campaign aimed at boosting the ranks of younger smokers, he said.
BAT was quoted as saying that it was simply seeking to remain competitive as sales of cut-price cigarettes soared.
It was clear when the idea of standardized packs was mooted that the removal of one competitive weapon, pack design and appeal, would lead to the sharpening of another – price.