Government not helping businesses with plain packaging idea

NZACS Media Release

FOR RELEASE – Wednesday 3 October 2012, 09:45am

Government not helping businesses with plain packaging idea

With submissions on the Ministry of Health’s latest tobacco control agenda item plain packaging due Friday, the reality is that this measure will do little to achieve the Government’s stated objective of helping to grow and build a more productive and competitive economy says a leading retailer organisation.

“While some in Government may consider plain packaging a positive step, placing yet more regulations on a product category that can be legally sold places additional burdens on the growth and profitability of retail businesses – and that impacts on the New Zealand economy,” said Roger Bull, Chairman of the New Zealand Association of Convenience Stores (NZACS).

“Simply put, plain packaging of tobacco products that will look almost identical, presents a number of challenges to retailers, not the least being increasing transaction times which impacts on a business’s ability to grow, hire new staff or pay higher wages,” said Mr Bull.

In a strongly worded Submission to the Ministry’s ‘Proposal to Introduce Plain Packaging of Tobacco Products’, NZACS believes that the framing of a number of the consultation’s questions present a blatant attempt to secure justification for the Ministry’s attempt to introduce plain packaging.

“The Ministry’s plain packaging proposal will further increase problems with retailers’ inventory management, lead to an increase in stock delivery times and transaction times, and increases the potential for the wrong product selection by staff – all costing businesses time and money.”

“This idea, so close on the heels of the retail display ban does nothing to help grow or create new jobs but will instead undermine confidence and competitiveness within the retail sector,” Mr Bull said.

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