Senate debates

Wednesday, 14 September 2016

Bills

Excise Tariff Amendment (Tobacco) Bill 2016, Customs Tariff Amendment (Tobacco) Bill 2016; Second Reading

11:24 am

Photo of Barry O'SullivanBarry O'Sullivan (Queensland, National Party) Share this | Hansard source

I too rise to make a contribution to the debate in relation to the Customs Tariff Amendment (Tobacco) Bill 2016. Let me open my contribution with a story—I know Senator Sterle will enjoy this story, being a man of the fifties. I recall, as a youngster aged 13, convalescing at the Rockhampton Base Hospital men's ward after some surgery. For those of us listening who sadly can remember the sixties, I found myself in a men's ward with the traditional old lime-green floors and walls. That seemed to be the colour of choice for hospitals back then. There were about 40 or 50 men, if my memory serves me correctly, who were convalescing in the ward with various injuries or recovering from surgeries, and the majority of them were lying there smoking with ashtrays on their chests. I can remember my physician—I cannot remember his name but I can remember quite distinctly him coming in with a very large bendy pipe in his mouth. I can remember the nurses—part of their duties was to come around and empty the ashtrays into old powdered milk tins then.

I have often wondered since that time—these issues did not strike me at the time—what would have happened, if I had stood up on my bed and announced to those men in that ward that it would not be long before they would not be able to smoke in the hospital, on the verandah of the hospital, down in the car park, over at the racecourse, at railway workshops, in a car with their children, within 100 metres of a government building, in an aeroplane or at any of the other places that other people have reflected on in their contributions.

I can say to you—more particularly, as I got involved in politics and now as a member of the Senate and a legislator—that it has always remained with me that the power of public policy and shifts in the culture of societies can over time make some very, very positive contributions to our amenity of life. Indeed we have seen a reduction in the use of tobacco and tobacco products—except for some age cohorts within society—and have also seen, I think, a much more responsible approach to the consumption of alcohol over that time. I think that that has come about through a range of initiatives, including public initiatives, but also through changes in culture in our society, as people become more aware of the potential negative impacts in certain circumstances of the consumption of the topic of choice today of tobacco—and indeed not just with tobacco but with alcohol and even the consumption of illicit drugs. It remains a challenge most certainly in this country, but I think a more educated society in part is what contributes to changes in cultural attitude to these things; however, as with everything in life, as our society goes forward, it can be given assistance in other forms. In this case, the introduction of this bill is a decision of the government of the day to use some fiscal measures to make a contribution to the ongoing battle—it is a long way from being completed—regarding the consumption of tobacco products.

It would surprise me, if any senators making a contribution to this bill were to rail against the bill. In fact, the methodology of increasing the excise on tobacco is almost a bipartisan measure, because many of these measures were introduced of course under the Labor administration of Prime Minister Gillard. I have to say—and I do not do this very frequently—that the Labor Party need to be congratulated on leading in this way, because the reforms introduced under Labor—

Senator Jacinta Collins interjecting—

Make note of it, Senator. I will send a highlighter pen around. You can highlight the Hansard and frame it. I am paying great tribute to the Australian Labor Party for their leadership in this space. The initiatives that they undertook—

Senator Whish-Wilson interjecting—

All right, and the Greens perhaps may have been involved somewhere on the early initiatives. We will recognise them as well.

This introduction of an increase in the excise is not a new measure. This is a measure and a model that was adopted by the Australian Labor Party—and they provided leadership in this space—back when they reviewed the excise and increased it, from memory, by about 25 per cent. We need to look at, along with all of the other measures that exist in society to inhibit the consumption of tobacco products, the efficacy of measures such as increases in the excise. I heard the very valuable contribution by the previous speaker, reflecting on resistance to such measures as it heavily impacts on the lower socioeconomic strata within our society. That is following on from the evidence that people in lower socioeconomic stratas—in fact, people who live in my beloved regional and rural Australia—are more inclined to consume tobacco products per capita on average than others who live in more metropolitan and urban areas. There are any number of reasons for this. But going to the heart of the question of whether an increase in the excise impacting on them is a right and proper thing to do, I think one needs to consider the flip side of the coin and the impact it will have on their life for any person who consumes tobacco products.

I think that anything that government does with a pure heart is a good thing. I know there will be those who will suggest that this is simply a revenue grab and that it is not designed to do anything but increase the income in the coffers of the nation. I would say to them that I think it is a very genuine measure. I think it is a legitimate measure. In fact, there is evidence to suggest that this works.

What we have seen after a range of measures—including that one-off 25 per cent increase to the excise that I have attributed to the Australian Labor Party and, indeed, which I support conceptually—is a significant reduction in the consumption of tobacco products of some 11 per cent. Anything that we can do through a policy measure that increases, if that is the intention, or decreases a number into double digits falls into the success basket. It is not to be sneezed at that an 11 per cent reduction occurred as a result of the last increase in excise. I know this is not what will happen this time but, with these increases from 2017 onwards, if we are able to achieve double-digit decreases in the consumption of tobacco then we will be heading towards very, very acceptable rates of consumption. That is not to say that any consumption is supported, but it will get us down to much more manageable rates.

Initiatives such as the increase in the excise will not work simply in and of themselves. I think some of the credit for that decrease in consumption has to go to other initiatives that have taken place. Governments have played a part in some of them. These things help mould and shape people's culture and attitudes to these things. There have been measures such as the reduction in tobacco advertising. In fact, I do not think I can think of a circumstance now where tobacco can be advertised. But most of us are of an age that we will remember the advertisement of tobacco. As a young man I used to pretend I had a cigarette hanging out of my mouth when I pretended to be John Wayne while playing cowboys and Indians. You might remember that very prominent people in our communities—

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