An announcement from Associate Health Minister Tariana Turia, that the government will introduce plain packaging with health warnings for all tobacco products, comes with a caveat of litigation.
The government’s plan will see New Zealand following Australia in bringing in the plain packaging and it will most likely bring challenges in Court, in the same way that the big tobacco companies have brought legal pressure in the lucky country.
Ministry of Health officials will begin policy work immediately, but any changes would not be implemented until the conclusion of a World Trade Organisation dispute over Australia's introduction of plain packaging. That could take 18 months but, even if the Australian government wins the WTO case, challenges in New Zealand courts could take even longer. The legislation also depends on the Maori party’s place in government. If it falls outside the next election, the new government would not necessarily have an obligation to push through with it.
Associate Minister Turia said, "The Government acknowledges that it will need to manage some legal risks. As we have seen in Australia, there is a possibility of legal proceedings. To manage this, Cabinet has decided that the Government will wait and see what happens with Australia's legal cases, making it a possibility that if necessary, enactment of New Zealand legislation could be delayed pending those outcomes."
She added that legal action could cost taxpayers anywhere from $3m to $6m. However, health experts say the savings in medical bills could amount to $2bn, if the legislation prevents people smoking.
Australia also faces a law suit brought by Philip Morris, with the tobacco giant saying the plain packaging breaches a free trade agreement with Hong Kong. Here, the big tobacco companies, including British American Tobacco, have reserved legal action as a potential weapon against the proposed legislation. Brendan Walker, head of commercial at Imperial Tobacco New Zealand, said, “"Plain packaging breaches international trade agreements that affect New Zealand and the government has acknowledged that there is a risk that New Zealand could be exposed to WTO action."
Turia has stood her ground on the issue and said, “I’ve come in to this position knowing that it’s our families – Maori families – who are the most likely to be affected by this – 13 people dying a day, 5000 people dying a year.”
