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RNZ News
23 minutes ago
- RNZ News
A tobacco product tax cut slated for one year has been extended by two
NZ First's Casey Costello is the minister responsible for tobacco policy. Photo: VNP / Louis Collins The tax break for Heated Tobacco Products (HTPs) made by Phillip Morris has been extended for an extra two years. In July 2024, the government cut the tax on HTPs in half , in what it said would be a one-year trial subject to an evaluation. But NZ First Associate Health Minister Casey Costello told RNZ the evaluation would now be done in July 2027 and the reduced tax rate would apply to HTPs at least until then. Labour's health spokesperson Ayesha Verrall said the extension of the tax cut was striking, given the strain on the health system. "This government has the wrong priorities. It is giving tax breaks to tobacco companies now valued at over $300 million and the evaluation they promised, to check that it was helpful, is a total sham." Costello cut the HTP tax rate by 50 percent last year, with the aim that cheaper prices may encourage people to switch from cigarettes to HTPs. The cut was made despite health officials telling Costello there was no evidence HTPs worked to stop people smoking or were significantly safer than cigarettes . Costello told Cabinet she had her own "independent advice" which, when she released it later, turned out to be five articles that were either about different products, outdated, or offered only weak support for her view. Treasury said Philip Morris had a monopoly in the HTP market in New Zealand and would be the main beneficiary of the move. Costello's office told RNZ the tax cut trial would be extended because Philip Morris had to pull its IQOS device from sale last year , as it did not comply with requirements for vaping devices to have a removable battery. Last week, Costello ditched the requirement for removable batteries, saying Cabinet was advised this was the best way to resolve legal action from Mason Corporation, which owns the Shosha vape store chain. A spokesman for the Minister said with HTPs off the market for months last year, the original plan for an evaluation after one year did not make sense. "There wasn't an evaluation because of the withdrawal of HTPs from the market. Any report back would be meaningless as the cheaper HTPs were only available for two months," the spokesman said. "Cabinet agreed to extending the HTP review to July 2027 as there will be more market data available." The spokesman said the evaluation would then be able to show whether "a sustained price reduction encouraged uptake by smokers" and if it had helped reduce smoking. The assessment would also look at whether HTP use "encouraged smokers away from vapes" and the extent of "unintended uptake by young people". A March 2025 Ministry of Health (MOH) briefing to Costello, focused on how to evaluate the HTP tax cut, said Philip Morris had not initially passed on the excise reduction to consumers. "There was no price change passed through to customers for the first month, though this is an observation of value in and of itself," the MOH said. The briefing, obtained by RNZ under the Official Information Act, said Philip Morris had to pull its IQOS device just three months into the tax cut trial. "All HTP devices were removed from the market in New Zealand due to not meeting new safety regulations. This has meant there have been no HTP devices available for purchase for at least 5 months of the 12-month trial period." Costello has said that HTPs "have a similar risk profile to vapes", but officials from Treasury and Ministry of Health advised her they were much more harmful than vaping. In its March briefing, the MOH told Costello it would be difficult to assess whether people using HTPs had decreased their harm or not. "While we will be able to assess whether the percentage of current or recent smokers who use HTPs increases, we will not be able to track whether those same people were previously using, or likely to use vapes, for example, whether they moved from a safer alternate product to a more harmful one." Verrall said the onus should be on Philip Morris to prove its product was safe. "There is no reason why the government should be running a study for Philip Morris to help get its products used," she said. "This product is not a health product. It is a harmful product." Verrall said the latest update from the Treasury showed the HTP tax cut was forecast to cost up to $293 million if continued until 2029. "It's deeply worrying when our health system is underfunded that the government is giving away $300 million to the benefit of a single company with links to one of the coalition partners," Verrall said. The extension of the tax break for the Philip Morris products comes after RNZ published documents alleging a close relationship between NZ First and the tobacco giant . The documents, released in litigation against US vaping company JUUL, allege Philip Morris pitched draft legislation to NZ First as part of a lobbying campaign for its HTPs. The documents claim Philip Morris corporate affairs staff "reached out to NZ First to try and secure regulation to advantage IQOS". A lobbying firm advising JUUL claimed that NZ First leader Winston Peters had a relationship with Philip Morris and also that "any regulation he champions is likely to be very industry friendly and highly geared towards commercial interests in the sector". Peters did not address the allegations that NZ First received material from Philip Morris, but said RNZ's story was a "tissue of baseless accusations" and that engagement with the tobacco industry was legitimate. "Multiple government departments have themselves proactively reached out to, and met with, 'big tobacco' for direct feedback and advice on tobacco legislation," he said, in a post on X. Health Coalition Aotearoa and Vape-Free Kids want Prime Minister Christopher Luxon to strip NZ First of the tobacco and vaping portfolio but he says Costello is doing a great job. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
23 minutes ago
- RNZ News
Balancing risk with overreach in our terror laws
Photo: Sanka Vidanagama / NurPhoto via AFP The government wants to tighten our terror laws, but critics fear it will mean a corresponding trampling of advocacy groups and free speech. The government is eyeing an overhaul of the country's terrorism legislation, which is necessary, it says, to keep New Zealanders safe in a rapidly evolving world and keep pace with modern threats. However, critics are warning that the move could come at a steep price, specifically a loss of civil liberties. The proposed changes, still in the closed-door consultation phase with a handpicked selection of groups and experts, would give police and intelligence agencies broader powers to intervene earlier, redefine what constitutes a "terrorist act" and expand preventative detention powers, all in the name of public safety. Today, The Detail spoke with Newsroom national affairs editor Sam Sachdeva and University of Waikato terrorism and firearms expert Alexander Gillespie about the potential changes to the Terrorism Suppression Act and how the government will balance risk without resorting to overreach. "What this is really about is are our current terror laws fit for purpose, and where do we draw the line between dealing with the very real threat that is posed by terrorist groups and terrorists, while still preserving the fundamental political freedoms and rights and liberties that all New Zealanders hold dear," Sachdeva told The Detail . He said critics, worried that those freedoms and rights are now at risk, are fired up. "Look, they are. We have seen the Council for Civil Liberties, [and] the Free Speech Union has now come out as well, expressing some concern about this. "So, it's early stages, but it seems like it's something that could quite easily animate or light a fire under a lot of these rights groups who are concerned." The terror law, enacted in 2002 following the 11 September terror attacks, allows governments to formally designate people or groups as terrorist entities, freezing their assets and making it illegal to financially support, recruit for, or participate in a designated terrorist entity. Minor changes were made after the 15 March terror attack in 2019 and the New Lynn Countdown Supermarket attack in 2021. Sachdeva said among the new potential changes are making membership of a terrorist entity a criminal offence, creating new offences to capture public expressions of support for a terrorist act or designated entities - including showing insignia - and modernising definitions for terms like "material support" to capture new online forms of support. Extending the renewal period for terrorist designations to five years, from three at present, is also being considered. The government said there will be safeguards and judicial oversight. The proposed changes are expected to go before Parliament later this year. Gillespie, speaking to The Detail from Vienna, where he is working on gun reforms, said the threat of a terror attack has long lingered in New Zealand, and while the likelihood of another attack will never be zero, the risk can be lowered. "Part of reducing that risk is making sure the law is as good as it can be. That the balance between civil liberties and risk is correct. And that we have proportionate penalties for those who are willing to advocate the use of violence against civilians to change policy. "I support looking at it... I think it's foreseeable that the tensions in our society are going to be around for the foreseeable future. And to make sure they are fit for purpose, because when I look back at recent times, our laws weren't fit for purpose, and now we need to be thinking, 'what more can we do?'." While the debate on security versus liberty and protection versus principle will undoubtedly continue, one thing is certain -in the fight against terror, New Zealand is searching for a line, but it will not be easy to draw. Check out how to listen to and follow The Detail here . You can also stay up-to-date by liking us on Facebook Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
9 hours ago
- RNZ News
Climate Liberation Aotearoa protesters target Stockton Mine
First published on By Sharon Davis and Ellen Curnow* Protesters used the aerial ropeway cables as a zip line to access a coal bucket high off the ground. Photo: Supplied Climate activists have climbed into a coal bucket on the rope way at Stockton Mine again to protest Bathurst Resources Ltd's fast-track application to extend its mining operations across the Buller plateaux to Denniston. Yesterday afternoon, two Climate Liberation Aotearoa protesters clipped themselves to the ropeway cable and used it like a zipline to access a coal bucket in a remote area high off the ground. This follows a larger protest at Stockton and Denniston in April which ended with at least nine people charged with wilful trespass. Protester Rachel Andrews, from Palmerston North, was among those charged with trespass on 21 April. Speaking to The News from a coal bucket this morning she said they had a good supply of water and food and planned to disrupt the transport of coal from Stockton Mine for as long as possible. Their goal was to have Bathurst withdraw its fast-track application to mine 20 million tonnes of coal on the Denniston Plateau. While there are only two protesters in the coal bucket, she said they were supported by a huge group of people who were against the mine and the fast-track process. "There is huge opposition to this mine, even on the West Coast," she said. Andrews said there were several reasons she was personally motivated to participate. One was the legacy she would leave for future generations. She wanted to be able to tell her four grandchildren that she did everything she could to prevent a climate disaster. "We're in a climate emergency,,, people are dying from climate disasters. We can't afford to burn the coal already out of the ground, let alone mining more." Andrews was also unhappy with the "undemocratic process" under the Fast Track Bill. She said it placed the decision-making process in the hands of a few people who had shown that they didn't care about the environment and were proud to support more mines. Protest was the only way for the public to intervene in the fast-track process, she said. "There is no longer any way for members of the public to voice concerns about proposed projects like this coal mine on kiwi habitat. The New Zealand government has effectively forced communities to take actions like this if we want to be heard." Andrews spent part of the April protest in a "nest in one of pylons" and was trespassed from Stockton. She said a lot of thought had gone into planning an action like this. But any consequences would be worth it, to be able to say she had done everything she could to prevent a disaster for future generations. "I don't take the consequences lightly." Andrews said many organisations were committed to stopping fast-tracked mines and were in it for the long haul. "We will continue doing everything we can to oppose Bathurst Resources' proposed mine ... We will not stand idly by and accept this destruction," she said. The International Court of Justice recently said countries must address the "urgent and existential threat" of climate change by curbing emissions and yet New Zealand was encouraging more mines and more drilling for oil and gas. Andrews said the proposed mine on Denniston would generate at least 53 million tonnes of emissions, close to New Zealand's entire net emissions of 59 million tonnes. "We can't afford to keep destroying the planet," she said. Westport sergeant Georgie Were said police would be negotiating with the protesters to get them to come down. She said they were in a remote location which made communication difficult. The News tried unsuccessfully to contact Bathurst Resources Ltd for comment. During a recent panel discussion on how Buller could transition from coal, Bathurst chief executive Richard Tacon acknowledged the right to protest but said climbing into coal buckets was dangerous. The protesters could have accidentally flicked a lever, flipped the bucket and fallen to their deaths, he said. Locals took to Facebook today in support of the mine and local employment, with some suggesting starting the ropeway or enlisting the fire brigade to point a hose at the protesters to get them to come down. *This story originally appeared in the Westport News.
