Greens warn of legal war over plain packets

Australia plans to have packets with small brand names and alarming pictures and warnings. Photo / Supplied

Enforcing Australian-style unbranded cigarette packets in New Zealand could cost the Government dearly unless it unpicks part of a trade treaty, the Greens warned yesterday.

Philip Morris, the maker of Marlboro cigarettes, has threatened to sue the Australian Government for billions of dollars over its bill to require standardised, de-branded tobacco packaging.

The New Zealand Government is exploring following the Australian move. Intended to come into effect next year, it is aimed at neutering the cool factor that plays such a big part in hooking young people into smoking.

The international tobacco company's legal threat was made by its Asian subsidiary under Australia's bilateral investment treaty with Hong Kong. If mandatory negotiations fail, the case will go to arbitration under United Nations rules.

Philip Morris argues that forcing its tobacco into olive-brown coloured packets with large, disturbing health warnings and standardised fonts for brand names - the Australian plan - robs the company of the value of its brands, such as Marlboro and Peter Jackson.

Green Party co-leader Russel Norman says New Zealand has a similar investment deal with Hong Kong to Australia's, leaving it open to similar legal action if it opts for plain packaging.

"New Zealand is currently reviewing our free trade deal with Hong Kong. We call on the Government to remove all investor rights protections so that we can regulate for good public health without the risk of Philip Morris suing us.

"We also call on the Government to release the draft text of the intellectual property section of the Trans-Pacific Partnership trade talks with the US. We need to know what rights our Government is handing over to Philip Morris in those negotiations.

"We think these decisions shouldn't be made by some tribunal in Singapore or wherever.

"These kinds of decisions are the decisions of democratic sovereign nations and we've got a right to make those decisions."

Trade Minister Tim Groser is in India and his office did not reply to Herald questions.

Australian ministers have said their Government's legal case is strong and it won't be intimidated by Philip Morris.

Australia is expected to argue a defence of public interest for plain packaging; Philip Morris is likely to say there is no public interest because plain packaging hasn't been shown to reduce smoking.

But marketing expert Professor Janet Hoek, of Otago University, said there was a growing body of evidence that plain packaging reduced smoking rates.

She said research with young people had shown they found plain tobacco packaging uncool and unappealing - factors expected to help stop people smoking and to deter young people from taking up the habit.



COOL FACTOR ZERO
* Unbranded cigarette packets will come into effect next year in Australia.
* They will be olive-brown coloured packets with large, disturbing health warnings and standardised fonts for brand names.
* The New Zealand Government is looking into doing the same here.