Smoke and Mirrors: Costello’s Heated Tobacco Gamble Backfires

introduction

Associate Health Minister Casey Costello is facing mounting pressure to resign after a series of missteps in her handling of heated tobacco product regulations. Despite public health officials, a parent lobby group, and the Opposition calling for her dismissal, Costello maintains she has the Prime Minister’s confidence.

Costello’s controversial decision to slash excise tax on heated tobacco products by 50% from July 1st, with the aim of switching 7000 smokers to the alternative, has backfired spectacularly. The government allocated a staggering $216 million to offset the lost tax revenue, but the trial has been thrown into disarray. The main heated tobacco product on the market, Philip Morris’ IQOS, has been rendered illegal due to new regulations banning vapes without removable batteries and child safety mechanisms.

Costello’s attempt to delay these regulations by two years was met with resistance from senior ministers, resulting in a six-month delay. She insists her motivation was to ensure strong legislation was in place, but critics remain unconvinced.

The government has committed $216 million for this so-called trial and then it turns out, there is no product,” stated Labour’s health spokesperson, Ayesha Verrall, who has called for Costello’s resignation.

Professor Chris Bullen, a public health expert and spokesperson for Health Coalition Aotearoa, echoed Verrall’s concerns, stating, “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 added, “Integrity, fail, transparency, fail, competency fail. Three Strikes should be out.”

Adding fuel to the fire, Vape Free Kids, a group of parents advocating for stricter regulations on tobacco products, claim widespread non-compliance with the ban on heated tobacco products and vapes without child safety features. They have documented instances of retailers selling illegal products, despite Philip Morris informing them of the regulatory changes.

Philip Morris, while acknowledging the $6 million in excise tax generated by heated tobacco products, argues that the $216 million figure is a “gross miscalculation.” They maintain that heated tobacco products are “smoke-free alternatives” and promise to release a new range of compliant devices soon.

Conclusion

This debacle has exposed a significant disconnect between the government’s stated commitment to Smokefree 2025 and its actions. Costello’s handling of heated tobacco products has been characterized by a lack of transparency, questionable decision-making, and a failure to adequately consider the potential consequences for public health. The Prime Minister’s unwavering support for Costello, despite the mounting evidence of her failings, raises further concerns about his commitment to effective policymaking and the well-being of New Zealanders.

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About the Author: Dr Rawiri Waretini-Karena

Ngāti Māhanga, Ngāti Māhuta, Ngāti Kaahu, Ngāti Hine- Ngāti Mōrehu: Lecturer, Educator, Independent researcher.