Tobacco giant Philip Morris has used a secret Senate hearing to push for lower cigarette taxes in Australia, warning that the illegal tobacco trade could wipe out legal sales by 2030. The company argued for a reduction in federal excise to undercut the black market, which now accounts for up to 60% of sales, worth an estimated $6.9bn.
The closed-door session in Canberra on Monday broke with more than 15 years of precedent under the World Health Organization's framework convention on tobacco control, which Australia signed in 2004. The convention requires transparency when tobacco companies give evidence in policy-making, to prevent industry interference in public health.
Labor criticised Coalition MPs for allowing the private hearing, which was chaired by South Australian Liberal senator Leah Blyth. Anti-smoking campaigners, the Greens, and the federal government also condemned the move. Health Minister Mark Butler had written to MPs urging them to adhere to the WHO agreement.
Philip Morris executives argued that their identities should be kept secret due to threats from organised crime. However, critics accused the company of prioritising profits over public health. The Heart Foundation's chief medical adviser, Professor Garry Jennings, said the committee had 'invited the enemy into the war room'.
The company made a public submission to the inquiry but was not listed on published programs. It also gave evidence in camera to a New South Wales parliamentary inquiry in February. Federal customs minister Julian Hill said big tobacco had failed to provide transparency on commercial data and supply chains, and warned Australia would not enter a 'bidding war with organised crime' on tobacco prices.
