Illicit trade: how government works
I attended a conference yesterday on the subject of illicit trade.
Delegates included civil servants, trading standards officers, tobacco lobbyists and representatives of Her Majesty's Revenue and Customs (HMRC), to name a few.
Venue was the National Liberal Club which used to have a portrait of Winston Churchill, painted by Ernest Townsend in 1915, in the foyer. (I think it's still there. I didn't look.) Townsend was my paternal grandmother's brother which makes him my, er, great uncle.
Anyway, speakers included Mark Garnier MP, Treasury Select Committee; Andy Leggett, deputy director, Alohol and Tobacco Policy, HMRC; Joe Barrett, a member of Retailers Against Smuggling, an Irish campaign group; and Peter Astley, Public Protection Manager (I kid you not), Warrington Borough Council.
It was during Astley's presentation - during which he talked of "coordinated enforcement activity", "improving [the] intelligence base", "funding specialist teams", not to mention more scanners and using prison sentencing to tackle tobacco smuggling - that I finally became so exasperated that I stood up, introduced myself, and pointed out that there was an elephant in the room that no-one was addressing.
The number one reason for the booming black market in tobacco, I said, was the high level of taxation. "We all know that the Department of Health is driving tobacco control policy in the UK. What," I asked, "is Peter, and the stakeholders represented in this room, doing to lobby the DH to support a reduction - not a freeze - in tobacco taxation to bring it into line with other EU countries?"
Silence. Astley ignored the question and instead mumbled something about his priority being "smoking prevention".
So there you have it. Truth is, there is a very simple way that government could address the problem of tobacco smuggling - which costs the Treasury hundreds of millions (if not billions) of pounds every year - but they won't consider it while the tobacco control lobby is pulling the strings.
Meanwhile criminal gangs - who are happy to sell cigarettes to anyone, including children - reap the dividends while officials such as Peter Astley propose spending even more public money tackling a problem of the government's own making.
Nice work if you can get it.
As a retailer Joe Barrett understandably wants a reduction in the amount of tobacco consumers can bring into the country. Worrying, HMRC appear to be moving in that direction too. According to Andy Leggett, it's something that is currently being considered.
Over lunch I discovered that new guideline for cigarettes imported from Europe could be reduced from 3,200 to 800, which is what it used to be until the previous government realised the error of its ways and increased the guideline from 800 to 3,200 in 2001/2002.
Of course, it's only a guideline. Unless they go a step further, consumers are allowed to bring into the country as much tobacco as they like as long as it's for their "own personal use".
The problem with reducing the "guideline" is that, above 800 cigarettes, you may have to produce evidence that you smoke as many cigarettes as you claim. That means presenting Customs officials with receipts (proof of regular purchase), plus a letter, perhaps, from your doctor or employer confirming that you do indeed smoke 20, 30 or whatever cigarettes a day. (But do you want your employer to know?)
As we know from experience, it increases the hassle and the feeling of "guilt" as you re-enter the country with your "stash of cigarettes" (as Nick Clegg might call it) in your suitcase.
The government will no doubt see this as "nudging" smokers to change their behaviour. I think they're taking liberties.