The Australian's claim on tobacco goes up in smoke

Fri, 06 Jun 2014  |  

The Australian is at it again. It is running another fact-less story with the express intent of undermining a key policy of the previous Labor government and what is disconcerting this time, is that it is pushing the line of the tobacco industry.

Today there is a Page One story by Christian Kerr which makes the sensational claim that "Labor's nanny state push to kill off the country's addiction to cigarettes with plain packaging has backfired, with new sales figures showing tobacco consumption growing during the first full year of the new laws".

The "exclusive" story based on "new data obtained by The Australian" claims that "tobacco sales volumes increased by 59 million 'sticks' ... last year". The source of this shock finding is "industry monitor" InfoView which is "backed up by retailers, consumer marketers and the industry". Only Philip Morris and the Australasian Associates of Convenience Stores are cited.

Fortunately, the story is wrong.

Consumption of tobacco and cigarettes is falling and has fallen sharply since the plain packaging rules were implemented in December 2012.

Just this week, the Australian Bureau of Statistics released the national accounts and buried in those accounts is a measure of the volume of household consumption of cigarettes and tobacco.

The figures from the ABS show that total consumption of tobacco and cigarettes in the March quarter 2014 is the lowest ever recorded – and this with the series starting in 1959. This is extraordinary. It is a Great Depression for tobacco sales.

Making this record low consumption of tobacco all the more fantastic is that the fact that the consumption numbers are not adjusted for population growth which, by definition, means per capita consumption of tobacco and cigarettes is also at a record low.

Making a mockery of The Australian's story is the fact that, in seasonally adjusted volume terms, consumption of tobacco is 5.3 per cent lower in the March quarter 2014 than in the December quarter 2012 when the plain packaging laws were introduced.

It seems like The Australian is pushing, in a high profile front page story, baseless information fed to it from pressure groups with a vested interest to sell more tobacco and cigarettes. With sales cascading, there are looking for any pressure to change the rules that are obviously working to reduce tobacco consumption.

And just to round out a few more facts on the wonderful success of the anti-smoking campaign over the past few decades, the overall consumption of cigarettes has fallen 51 per cent since the mid 1980s, a time when Australia's population has risen by just under 50 per cent. Wow! 

This is good news indeed, despite the tripe and flotsam dished up, yet again, in the Australian.

comments powered by Disqus

THE LATEST FROM THE KOUK

House prices: Karratha and Sydney - why the divergence

Wed, 22 Feb 2017

This article first appeared on the Yahoo 7 Finance website at this link: https://au.finance.yahoo.com/news/a-jump-in-demand-to-do-something-about-the-supply-of-houses-034305361.html

------------------------------------------

House prices:  Karratha and Sydney - why the divergence

The thousands of students heading off to university this month to start their economics degrees can do so knowing that the basic laws of the discipline still hold. “Yay” – they might say as they sit down to their first Economics 1001 lecture.

Supply and demand is king.

Shortages, gluts, price booms and crashes reflect the supply and demand dynamics. These are the most basic concepts in the study of economics and they apply to the real world.
These basic economic laws apply to the Australian housing market which is going through extraordinary turmoil with prices booming in some areas and crashing in others.

It is not just housing where economy theory turns into reality. In looking at the market for bananas, widgets, fine art or concert tickets, the interaction of supply and demand will always determine the price of those items. But let’s look at housing and think of the following issues and questions.

Based on detailed data from SQM Research, why is it that since 2012, house prices in Karratha Western Australia have fallen by around 65 per cent, while in the lower North Shore of Sydney, house prices have risen by around 120 per cent?

Balanced budget needs higher tax take, but which taxes should be hiked?

Mon, 20 Feb 2017

This article first appeared on the Guardian website sat this link: https://www.theguardian.com/commentisfree/2017/feb/16/balanced-budget-needs-higher-tax-take-but-which-taxes-should-be-hiked-stephen-koukoulas 

---------------------------------------------------------

Balanced budget needs higher tax take, but which taxes should be hiked?

The treasurer, Scott Morrison, appears to be having something of a Gough Whitlam moment. Not in terms of far-reaching social and economic reform, but rather a realisation that the size of government needs to increase. The electorate is demanding a certain base level of healthcare, education, disability care, roads, defence, infrastructure and all manner of goods and services.

Morrison is talking about the need to raise taxes to ensure these government services are provided while simultaneously moving the budget towards surplus, which is an essential element to avoiding the credit rating downgrade that appears to be just around the corner.

He is explicitly acknowledging that, to keep voters happy with decent services, spending must remain above 25% of GDP and perhaps needs to rise further, towards record highs.

Prior to the Whitlam government in the early 1970s, government spending and revenue was generally at, or a little below, 20% of GDP. With the Whitlam reforms, this rose to about 25%, and apart from the swings in line with the business cycle and policy changes over the past 40 years, it has remained around 25%. It has not reverted to pre-Whitlam levels. Not gone close.