Mr. Chair, committee members, my name is Rob Cunningham, a lawyer and senior policy analyst for the Canadian Cancer Society.
Thank you for the opportunity to appear before you today.
At the outset, we acknowledge the federal government and Health Minister Hon. Petitpas Taylor for their support in advancing tobacco control. We also acknowledge all parties in supporting Bill S-5 at second reading, and the role of all parties over decades to contribute to advancing tobacco control in Canada.
We support Bill S-5 and have a number of recommended amendments to improve the bill.
First, I will speak to plain and standardized packaging. This is a key tobacco control measure, including to protect youth. Canada will join the eight countries that have finalized plain packaging requirements: Australia, United Kingdom, France, Ireland, Norway, New Zealand, Hungary, and Slovenia, and the many more in progress.
This binder that has been distributed to you includes an international review of where things are at.
Plain packaging advances several objectives: reducing tobacco product appeal, curbing package deception, ending promotional aspects of packaging, improving health warning effectiveness, and reducing tobacco use. The package is the most important type of tobacco advertising that remains in Canada today. Tobacco is addictive and lethal and should not be sold in packages to be made more attractive, period.
Imperial Tobacco has stated there is no evidence to support plain packaging. In fact, the evidence is overwhelming. Beside me is an extensive 13-volume evidentiary compilation submitted to this committee. It is available for your review and consideration. The compilation contains abundant studies worldwide that provide compelling evidence that plain packaging would be effective. There are more than 150 studies and reports and other evidentiary items specifically on package promotion and plain packaging, not to mention a vast number on package warnings and other related packaging aspects. Distributed to you separately is a table of contents.
Of course plain packaging would be effective. Why else would the tobacco industry be so opposed?
Implementation of plain packaging in Australia has been a success, but the tobacco industry claims that plain packaging in Australia has been a failure, claims echoed by Sinclair Davidson, who will testify later today. Mr. Davidson is a senior research fellow with Australia's Institute of Public Affairs, an organization that has received tobacco industry funding. The real benefit of plain packaging will be seen over 20 years but the initial years are already encouraging. If I can invite members of the committee to turn to tab 4 in this binder, you will see a graph with respect to the trend in smoking prevalence in Australia. Plain packaging was implemented in 2012, and you see a decline in smoking prevalence after. It's not the case that smoking declines have stalled.
If we turn to the next page, this is for 18- and 19-year-olds. Again, we see a decline in smoking prevalence. This is the national drug strategy household survey. The sample size for youth is smaller, but the next page has a much bigger sample size; current smoking in 16- and 17-year-olds in Australia, and there's a decline. When smoking rates get low, even a couple of percentage points are very important in terms of potential health impact.
There are other graphs that follow different sample size to the extent that they're reliable, and there's caution, but they're encouraging.
In France, the tobacco industry points to a decline in cigarette sales of 0.7% in the 12 months following implementation of plain packaging on January 1, 2017 to say that plain packaging is not working. However, there was also a decline of 5.1 % in roll-your-own tobacco, an important category in France. When considering population growth, the per capita declines are about 2% and 6%. Those numbers do not take into account inventory movements and changes in contraband levels, which can distort things. Just prior to implementation, retailers would have decreased their purchases to get rid of old stock and not to be stuck with things that would be redundant. After January 1, they had to replenish their inventory, so that distorts things.
The French government has strongly supported plain packaging and in 2015 even hosted a 10-country ministerial meeting to promote plain packaging with ministers of health from other governments.
One claim that has been raised is that, with plain packaging, it will take more time for a store employee to retrieve a package for a customer. This has not been the case in Australia, where many retailers simply place brands in alphabetical order. Studies in Australia found that there was actually a decrease in the time it took to retrieve a package.
Regarding contraband, industry claims should be disregarded as without merit for numerous reasons. Tab 3 of the binder responds to their claims. Keep in mind that the three major tobacco companies in Canada in 2008 and 2010 were convicted of contraband and paid fines and civil settlements of $1.7 billion.
The only reports cited to support the claim that plain packaging increases contraband are funded by the tobacco industry. KPMG, author of various reports, was forced to take the unusual step of writing to the British health minister denying that its report indicated that plain packaging increased contraband, as the industry has cited. The report found no counterfeit products, none, packaged for the Australian market. The total volume of all contraband in 2016 of 2.3 million kilograms was less than the 2.4 million kilograms in 2010 prior to plain packaging.
Imperial Tobacco argues that taking the brand name and logo off cigarettes will cause contraband. This is not the case. In part, companies will be allowed to place an alphanumeric indicator on cigarettes unique to each brand, as is done in Australia. There should also be a mandatory marking, something that Ms. Gladu and other members of Parliament raised during second reading debate. Such a marking would provide an indication as to what is intended for legitimate sale in Canada and would assist responding to contraband concerns. The best mandatory marking would be a health warning, a measure supported by research.
An amendment to the bill should provide regulatory authority to allow health warnings directly on tobacco products themselves, in addition to packages, just as the bill currently does for vaping products.
Our recommended amendments to the bill are included at tab 1 of the binder.
A further amendment should provide regulatory authority that some or all of the provisions of the act in the future could apply to herbal products for smoking, including herbal water pipe products. Water pipe use, hookah, is on the increase among youth and needs a response. An amendment should modify the process to adopt regulations under the Tobacco Act. It should no longer be necessary to submit regulations to the House of Commons for approval. Almost no other federal legislation has such a requirement, which inhibits effective and rapid responses that are essential when dealing with an epidemic.
Regarding e-cigarettes, we recognize that e-cigarettes are less harmful than conventional cigarettes, and we support the changed regulatory status in S-5. Through Bill S-5, the government is making e-cigarettes available as a less harmful product to smokers unable to quit. At the same time, the government recognizes that there are potential negative risks. Legislation is needed to deal with those potential risks, such as youth use, as well as marketing tactics that would discourage cessation where that would appeal to ex-smokers and non-smokers. Many of the bill's e-cigarette advertising restrictions are weak compared to other jurisdictions.
An amendment should ban all lifestyle advertising. Examples could include tropical beaches, sports cars, and glasses of wine by a romantic sunset—examples allowed by this bill. The Canadian Vaping Association, in Senate committee testimony, supported a lifestyle ban.
An amendment should clearly specify that the only advertising allowed is information advertising or brand preference advertising. This is reasonable. This is in fact the government's stated intent, but the intent is not reflected in the bill's current wording. Again, the Canadian Vaping Association testified that it wanted advertising limited to information advertising.
An amendment should further curtail sales promotions, such as e-cigarette purchases giving a chance to win a free vacation or tickets to a rock concert. Again these are lifestyle associations.
An amendment should restrict the location of permitted advertising and thus reduce youth exposure, though still permitting advertising to adult audiences. At present there is no restriction in the bill whatsoever on location; it's weaker than for tobacco or cannabis. Advertising is allowed on television, public transit, bus shelters, billboards, comic books—virtually everywhere.
Other countries, such as New Zealand, that are legalizing e-cigarettes with nicotine will ban e-cigarette advertising while allowing some at retail, in a way that matches provisions for tobacco.
What we have in Bill S-5 is provisions so weak that they're comparable to the 1964 Canadian tobacco industry voluntary code. They are very weak, even when you consider proposed regulations that the government has released for consultation.
Even with the proposed amendments on e-cigarette promotion, federal and provincial legislation would still allow retail displays and the provision of product information in specialty vape shops as well as in other specified locations.
We urge support for Bill S-5 and our proposed amendments. Bill S-5 is a critical component to a renewed and strengthened federal tobacco control strategy.
Before concluding, I would like to comment on the claim by Rothmans, Benson & Hedges that they want to end smoking and stop cigarette sales. This is a public relations claim; it is not believable. Why are they not supporting plain packaging for cigarettes, if that is their objective? Why are they funding convenience store associations to talk about contraband and to oppose tax increases for cigarettes?
Tab 5 of your binder shows the global campaign for Marlboro with lifestyle advertising—the “Be Marlboro” campaign. This is not a company that's sincere about ending cigarette sales, when they have advertising like that. This is a company that today, on packages of Canadian Classics, has a mountain lake scene that looks like Banff or Lake Louise. That's a lifestyle association. It's an example of why we need plain packaging.
They sell Benson & Hedges super slim cigarettes, which are very appealing to young girls and women. Those should be banned.
We have other companies.... For example, this is a company that has marshmallows over a campfire; this is Pall Mall. It's an association with lifestyle that is very appealing, and plain packaging would deal with it.
Just as a final example, because there are so many of them, this example is from Rothmans, Benson & Hedges. They have a package of cigarettes, but with a sleeve that has advertising. That's how they get around restrictions on bans on billboards.
This is an opportunity for us to implement plain packaging.
We express our appreciation to all committee members for the opportunity to appear.
Thank you.