A leaked document from tobacco giant Philip Morris says the company should target political parties including NZ First to get more favourable regulation for its Heated Tobacco Products (HTPs).
RNZ has obtained the 2017 document ‘Designing a Smoke-free Future in New Zealand’, a corporate affairs plan to lobby for HTPs and other smokeless nicotine products to be embraced as part of Smokefree 2025.
The Philip Morris New Zealand (PMNZ) lobbying plan, dated August 2017, was drawn up as the National-led government of the day was legalising vaping products. The document maps out a path for HTPs to gain similar recognition.
NZ First's Casey Costello has dumped a range of smokefree policies brought in under previous governments, saying she has other plans for driving down smoking rates. Photo / Mark Mitchell
“It is essential that we move proactively to control the narrative about PMNZ, our products and in particular, our potential contribution to harm reduction,” the document says.
“We would like to force those opposing PMNZ’s role in a Smokefree NZ … into a position whereby to oppose PMNZ’s RRPs (Risk Reduced Products) is to oppose harm reduction, or be pro-harm.”
Philip Morris has claimed it wants to stop selling cigarettes – it hasn’t, and still derives 62% of its global revenue from smoked tobacco – and positions its HTPs as part of a smoke-free world.
The document obtained by RNZ says the No 1 objective for PMNZ is to “maintain political pressure to ensure a favourable regulatory framework is achieved for all smoke-free alternatives”.
The No 2 objective is to “develop a long-term fiscal strategy for smoke-free products” – which is focused on excise tax cuts for HTPs.
The lobbying strategy recommends targeting NZ First and the Māori Party – which in 2017 was led by Marama Fox and Te Ururoa Flavell – to get HTPs accepted.
“Leverage on other political stakeholders besides the Māori (Party), such as NZ First, to push for the inclusion of all smoke-free products as an indispensable element to Smokefree 2025,” the document says.
The plan also reveals the tobacco company aims to target think-tanks “to advocate for regulatory and fiscal policies for non-combustible products to be proportionate to their risk” in comparison to cigarettes.
“Leverage on positions already advocated by the NZ Taxpayers’ Union, NZ Initiative and select public health stakeholders,” it says.
Current Government’s tobacco reforms
NZ First’s Associate Health Minister Casey Costello, who was a board member and also the chair of the Taxpayers Union before entering Parliament, has responsibility for tobacco control and vaping policy.
She recently cut the excise tax for HTPs by 50%.
The decision by Costello, who is also Customs Minister, has seen the Government set aside a contingency fund of $216 million for the tobacco tax cuts.
The dominant HTP in the market is the Philip Morris IQOS, where sticks of tobacco are inserted into a device and heated to a vapour, rather than burned.
A May Cabinet paper signing off on the excise tax cut says 7200 smokers could switch to HTPs as a result of them being cheaper although it’s unclear how much of the tax cut would be passed on to consumers.
“Because this product currently has a monopoly market in New Zealand, the extent to which a reduction in excise duty on HTPs would be passed on to consumers via lower retail prices is unclear,” the Cabinet paper says.
A leaked 2017 lobbying plan prepared by tobacco company Philip Morris said those opposed to its heated tobacco products should be positioned as "pro-harm". Photo / RNZ
From Parliament to tobacco lobbying
RNZ has sought comment from Philip Morris for weeks, including on whether it will reduce its prices for HTPs, but it has not responded to texts, emails or phone calls.
The two senior corporate communication positions at Philip Morris are held by people who previously held senior roles in NZ First.
David Broome, chief of staff for NZ First between 2014 and 2017, is external relations manager at Philip Morris.
Apirana Dawson – who was director of operations and research in the office of Winston Peters between 2013 and 2017 and led the election campaigns for the party in 2014 and 2017 – is Philip Morris director of external affairs.
The Public Health Communication Centre examined the voting record for smoke-free policies in a document released in August.
It found that Labour, the Green Party and Te Pāti Māori “voted consistently in support of progressive smoke-free legislation” and that National mostly did too, supporting these measures 70% of the time.
“The NZ First Party and Act Party generally voted against smoke-free policies,” the report said, noting NZ First voted for “progressive legislation” only two out of seven times and Act on only two out of nine occasions.
Costello declined an interview with RNZ but issued a statement saying it was “unfortunate and inaccurate” to portray her as being linked to the tobacco industry.
“In 2017 I was working in the commercial construction industry. I had nothing to do with Philip Morris or the tobacco industry then, and I haven’t since.”
Costello said she was committed to reducing the harm associated with tobacco, which is estimated to kill about 5000 New Zealanders a year.
“This Government is taking a different approach than the last one. We want to reduce smoking by helping people to quit rather than by restricting supply, but our intention is still the same – to get people to stop smoking.”
The “vast majority” of those still smoking were long-term nicotine addicts who needed help to quit.
She recently met with front line quit-smoking providers to develop a new Smokefree Action Plan to continue to drive down smoking rates.
“My focus is on how best to do that and I’m happy to be judged on results.”
Photo / RNZ
What to do with HTPs?
The leaked document also shows that Philip Morris sought to activate a PR campaign to convince the public that HTPs would help New Zealand become smoke-free.
“Leverage on the media to amplify consumers and other stakeholders’ demand for a range of smoke-free alternatives,” the document says.
“Activate a PR campaign to provide the optimal context for PMNZ to negotiate a smoke-free pathway in New Zealand.”
It says PMNZ should develop a “long-term fiscal strategy to advocate for tax that is proportionate to risk”.
The tobacco giant appears to have achieved that goal with Costello saying she cut the excise tax on HTPs to encourage smokers to switch, because “HTPs have a similar risk profile to vapes”.
But a Cabinet paper signed off by Costello concedes there is no strong evidence to show HTPs are safe.
“Given their relative recency to the market, there is not yet clear evidence that HTPs are significantly less harmful than cigarettes,” it said.
Documents released by the Ministry of Health show Costello also asked for advice on liberalising the regulation of HTPs but officials opposed the idea.
“There is no evidence to support their use as a quit smoking tool,” health officials said. “We do not recommend liberalising the way HTPs are promoted. This would likely compound existing concerns about youth uptake and addiction to nicotine products.”
