ACS Puts Cost of Tobacco Display Ban at £252 million
09 May 2008
ACS has submitted to the Department of Health detailed estimates of the potential costs to a convenience store retailer of implementing a tobacco display ban. It is estimated that the new equipment required to safely remove tobacco from customers view could cost the convenience industry as much as £252 million. The minimum a single store could expect to pay is £1,850 but this could rise to as much as £4,985 depending on the detailed requirements in any regulation.
ACS Chief Executive James Lowman said: “What we have found is that changing tobacco displays will bring significant and damaging costs to convenience stores. As the picture becomes clearer about what the likely harm to business will be, we have still not seen the convincing evidence that a ban would have the desired effect on underage smoking. If the costs are high and the benefits not clear then the Government should not press ahead.
“We have looked at international comparisons and worked with members to arrive at an analysis of costs, although we have only considered the costs of removing the equipment and replacing it. If you consider the cost of upheaval and loss of trade during any changeover the actual cost may be much more. Some of the big issues we cannot yet cost accurately include the shortage of equipment, materials and labour to change tens of thousands of shops, as well as the likley disruption to trade during any changeover.”
ACS has also called upon the Department of Health to produce evidence that would suggest a display ban is effective in reducing smoking rates among young people. Evidence ACS has collated from other countries, including Iceland and Canadian states, is not conclusive and in some cases even shows an increase in the smoking rates among young people (1).
The Department of Health will shortly be releasing a consultation on the next steps in tobacco control. The consultation forms part if the wider Cancer Strategy and Ministers have already indicated that display bans will feature in their thinking.
Mr Lowman continued: ‘This Government has to contemplate the possibility that the display ban is a bad idea that won’t have the desired effect. Rather than causing this level of disruption they could usefully target their attention on measures that will make a real difference. What we have made clear is that we believe that targeting proper interventions at bootleggers who sell tobacco on the streets and making it illegal to buy tobacco and supply it to an under 18 are both far more likely to change behaviour.”
Contacts:
Shane Brennan Public Affairs and Communications Manager
01252 515001/ 07921 372 978
Nina Collins Communications Coordinator
01252 515001
Michael Saxton/ Julie Kirby Grappa PR
020 7602 9222
Notes to editors:
(1) Working with members in the UK ACS estimates that the minimum cost of changing the gantry with no other alterations to the store would be £1850, however depending on the regulations the amount of change required in store could lead to substantially more costs.
(2) £285 million is calculated from figures provided that relate to the changeover that have already taken place in the Canadian market, where their estimate is that the cost of changeover has been between £2,250- £4,965 depending on the form of regulation brought in.
(3) The attached figures on teen smoking in Canada suggest that youth smoking rates remain higher in the states that implemented the display bans first (2005) and that in one the rates of smoking amongst the 15+ age group are on the increase. The table below highlights the increase in the percentage of young people smoking in Saskatchewan and Manitoba, two states which have implemented a display ban, compared with the Canadian average: display ban figures
ACS Chief Executive James Lowman said: “What we have found is that changing tobacco displays will bring significant and damaging costs to convenience stores. As the picture becomes clearer about what the likely harm to business will be, we have still not seen the convincing evidence that a ban would have the desired effect on underage smoking. If the costs are high and the benefits not clear then the Government should not press ahead.
“We have looked at international comparisons and worked with members to arrive at an analysis of costs, although we have only considered the costs of removing the equipment and replacing it. If you consider the cost of upheaval and loss of trade during any changeover the actual cost may be much more. Some of the big issues we cannot yet cost accurately include the shortage of equipment, materials and labour to change tens of thousands of shops, as well as the likley disruption to trade during any changeover.”
ACS has also called upon the Department of Health to produce evidence that would suggest a display ban is effective in reducing smoking rates among young people. Evidence ACS has collated from other countries, including Iceland and Canadian states, is not conclusive and in some cases even shows an increase in the smoking rates among young people (1).
The Department of Health will shortly be releasing a consultation on the next steps in tobacco control. The consultation forms part if the wider Cancer Strategy and Ministers have already indicated that display bans will feature in their thinking.
Mr Lowman continued: ‘This Government has to contemplate the possibility that the display ban is a bad idea that won’t have the desired effect. Rather than causing this level of disruption they could usefully target their attention on measures that will make a real difference. What we have made clear is that we believe that targeting proper interventions at bootleggers who sell tobacco on the streets and making it illegal to buy tobacco and supply it to an under 18 are both far more likely to change behaviour.”
Contacts:
Shane Brennan Public Affairs and Communications Manager
01252 515001/ 07921 372 978
Nina Collins Communications Coordinator
01252 515001
Michael Saxton/ Julie Kirby Grappa PR
020 7602 9222
Notes to editors:
(1) Working with members in the UK ACS estimates that the minimum cost of changing the gantry with no other alterations to the store would be £1850, however depending on the regulations the amount of change required in store could lead to substantially more costs.
(2) £285 million is calculated from figures provided that relate to the changeover that have already taken place in the Canadian market, where their estimate is that the cost of changeover has been between £2,250- £4,965 depending on the form of regulation brought in.
(3) The attached figures on teen smoking in Canada suggest that youth smoking rates remain higher in the states that implemented the display bans first (2005) and that in one the rates of smoking amongst the 15+ age group are on the increase. The table below highlights the increase in the percentage of young people smoking in Saskatchewan and Manitoba, two states which have implemented a display ban, compared with the Canadian average: display ban figures