‘Resign’: Growing calls for Casey Costello to lose portfolios over heated tobacco products

Wednesday, 2 October 2024

Fresh demands for Associate Health Minister Casey Costello to step down after her excise tax cuts on heated tobacco products, which critics say favor Philip Morris, whose product can't even be sold due to recent vaping regulations.

Associate Health Minister Casey Costello says she has Prime Minister Christopher Luxon’s confidence despite public health officials, a parent lobby group and the Opposition calling for her to be sacked over her handling of heated tobacco product rules.

Costello cut the excise tax on Heated Tobacco Products by 50% from July 1, with the intention to switch 7000 hardcore smokers over to the product. The government set aside $216 million to offset the lost tax.

She also asked Cabinet to delay new rules banning vapes without removable batteries and a child safety mechanism by two years, but senior ministers only granted her six months.

She denies allegations from critics that she was doing so to benefit the tobacco industry, and Philip Morris, whose IQOS product is the main device used in New Zealand.

“My view was defer it so we could have strong legislation in place this year. That was the reason, no other motivation behind it.”

There is no evidence that Heated Tobacco Products help people to quit smoking, the Ministry of Health says.

But Labour’s health spokesperson, Ayesha Verrall, does not believe there is an innocent explanation and has called for her to resign.

“The government has committed $216 million for this so-called trial and then it turns out, there is no product.”

Her call was echoed by Professor Chris Bullen, an Auckland University public health expert and Health Coalition Aotearoa smokefree spokesperson.

“It's just one of a long line of events that suggest that this Minister is not only lacking in the ability to be transparent about the sources of her advice, which raises questions about her integrity,” he said.

Charyl Robinson, from Vape Free Kids, says many retailers are not complying with the new rules. (File photo)

“I think, you know, integrity, fail, transparency, fail, competency fail. Three Strikes should be out. I think the the Prime Minister should stand up, take leadership and find someone who could better do the job and get us to smoke free 2025.”

It comes as Vape Free Kids - a group of parents pushing for stricter regulations on nicotine and tobacco products - claim many stores are not complying with a ban on heated tobacco products and vapes without removable batteries or child safety locks, which came into force on Tuesday.

Stuff spoke with one Wellington central retailer who had sold group spokesperson, Charyl Robinson, a now-illegal vape. They confirmed Philip Morris had told them of the regulatory changes, but they had not complied.

Robinson also purchased two IQOS devices in Porirua, north of Wellington, on the day the ban came into effect.

Philip Morris said heated tobacco products only yielded $6m in excise taxes.

“The claim of a loss of $216m in lost revenue from the recent changes in the tax on heated tobacco is we would argue a gross miscalculation, and this should be rectified immediately. Heated tobacco products, like e-cigarettes, are smoke-free alternatives.”

It promised an “enhanced range of innovative smokefree devices” which complied with the new regulations would hit the market soon.