Australian Tobacco Industry Wants Packaging Extension

The companies say it will not be able to meet the July 1, 2012, deadline, to have plain packaging for its cigarettes.

August 05, 2011

SYDNEY - Will Australian smokers be without cigarettes when the plain packaging law is set to begin July 1, 2012? That€™s what British American Tobacco Australia is predicting will happen because it will take at least two years for the industry to change over to the olive-green packs, The Australian reports.

To bolster its claims, British American Tobacco Australia gave lawmakers an inside look at the firm€™s production factory in order to show the manufacturing demands the plain packaging is producing. CEO David Crow said the government deadline was unrealistic and would cause a rise in illegal cigarettes.

"If we're asked to change some of the specifications, it's a really simple problem --we'll be out of stock," said Crow. Part of the reason is that in order to comply with the new regulations, his company needs to purchase new machinery, which might take close to 2 years.

"As soon as we're out of stock, the only people who stock the industry are . . . guys out of Indonesia, out of China. They currently stock 16 percent and they'll flood the market with cheap cigarettes. This is not good," said Crow.

Crow lobbied for an 18 month to 24 month transition time to allow the industry to adapt their facilities to the new rules. But the Australian Health Department did not agree, and told the tobacco firms that the July 1 deadline stands.

"We have made manufacturers very aware of the specifications of this packaging in the draft legislation," said Simon Cotterell, assistant secretary of the Health Department€™s tobacco control taskforce.

The new regulations are the most restrictive in the world.

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