Latest news with #Costello
Scoop
10 hours ago
- Health
- Scoop
HTP Change Aimed At Stopping Smoking
Hon Casey Costello Associate Minister of Health The Government's move to reduce the excise on Heated Tobacco Products (HTPs) is about getting more people to quit smoking, Associate Health Minister Casey Costello said today. 'The Labour Party and some people in RNZ are fixated on tobacco companies,' Ms Costello says. 'What Ayesha Verrall has said about the cost and benefit of this policy is completely untrue. 'We want people to stop smoking, and the contingent liability forecast by Treasury will only happen if a lot of people quit smoking and the Government's revenue from tobacco excise reduces significantly because of this. 'Obviously if that happens it's a good thing for smoking rates and peoples' health. Last year, a change was made to halve the excise duty on heated tobacco products (HTPs) to see if that might encourage cigarette smokers to switch to a less harmful product. There was to be an evaluation of the change after a year, but because of vaping regulation changes, HTP devices were withdrawn from the market for some of the year. HTPs are now back on the market and the review has been extended to July 2027 as there will be more data available. Last year's cabinet paper included preliminary modelling from the Ministry of Health showing 7,200 people quitting smoking in the first two years from the excise change. It also included estimates of the potential costs from reduced revenue from tobacco excise from people no longer smoking, and from the excise reduction on HTPs. These were included in the Budget documents as contingent liabilities to recognise the potential impact on the Government's accounts. 'What Labour and RNZ are saying is incredibly misleading,' Ms Costello says. 'To be absolutely clear, this is no 'tax break' for the industry. 'I said at the time and continue to say that our drive is to stop smoking. We are trying to see if HTPs can play a similar role to vaping and provide an alternative product and way to quit for smokers. 'We've made great progress in reducing smoking rates and with particular groups like young people and most smokers are now long-term and older and we need to try different ways to help them. 'While a full evaluation of this policy is two years away, I have asked the Ministry of Health to ensure that the excise reduction in HTPs continues to be passed on to consumers.' The Ministry of Health has also established an expert advisory group to look at improving the regulatory regime around all nicotine and tobacco products. The group includes representatives from Health Coalition Aotearoa, ASH, Vape Free Kids, Cancer Society, Heart Foundation, Hāpai te Hauora, the Asthma and Respiratory Foundation, Auckland and Otago Universities and other experts and is due to report to the Minister before the end of the year.
NZ Herald
a day ago
- Business
- NZ Herald
Government extends tax break for Philip Morris heated tobacco products
'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.' Labour's Ayesha Verrall criticised the extension, citing health system strain and a $300 million cost. Photo / Getty Images Costello cut the HTP tax rate by 50% 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. NZ First's Casey Costello is under fire for extending HTP tax cuts for another year, favoring tobacco giant Philip Morris. Photo / Getty Images 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 five 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 $293m if continued until 2029. 'It's deeply worrying when our health system is underfunded that the Government is giving away $300m 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.
Otago Daily Times
a day ago
- Health
- Otago Daily Times
Controversial tobacco tax cut extended
NZ First's Casey Costello is the minister responsible for tobacco policy. Photo: RNZ 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.
Yahoo
5 days ago
- Sport
- Yahoo
4-star, top 100 PF Quinn Costello to reportedly visit Michigan State during 'Grind Week'
A big-time power forward prospect in the 2026 class will reportedly take an official visit to Michigan State during its annual "Grind Week" in early September. Quinn Costello of The Newman School in Boston will reportedly take an official visit to Michigan State on September 5, according to 247Sports insider Justin Thind. This official visit will align with the Spartans' annual "Grind Week" event that brings together former players, current players and prospects for a monster Michigan State basketball reunion and recruiting event. Costello is a four-star prospect, with a recruiting rating of 96.53 in 247Sports' composite system. He is listed at 6-foot-10, and ranks as the No. 12 power forward and No. 72 overall prospect in the class. Michigan State is one of nearly 30 schools that have offered Costello, according to 247Sports. He also holds notable offers from Boston College, Florida State, Illinois, Iowa, Maryland, Michigan, Minnesota, North Carolina, Notre Dame, Penn State, Providence, Purdue, Stanford, Syracuse, Texas, Texas A&M, Vanderbilt, Virginia Tech, Wake Forest and Wisconsin. Costello visiting Michigan State during "Grind Week" would certainly suggest he is a top priority for the Spartans. This is annually a huge event for recruiting purposes and having him on campus for this event makes it clear he's someone Michigan State's staff is prioritizing in the 2026 class. Contact/Follow us @The SpartansWire on X (formerly Twitter) and like our page on Facebook to follow ongoing coverage of Michigan State news, notes and opinion. You can also follow Robert Bondy on X @RobertBondy5. This article originally appeared on Spartans Wire: Report: 4-star, top 100 PF Quinn Costello to visit MSU next month
USA Today
5 days ago
- Sport
- USA Today
4-star, top 100 PF Quinn Costello to reportedly visit Michigan State during 'Grind Week'
A big-time power forward prospect in the 2026 class will reportedly take an official visit to Michigan State during its annual "Grind Week" in early September. Quinn Costello of The Newman School in Boston will reportedly take an official visit to Michigan State on September 5, according to 247Sports insider Justin Thind. This official visit will align with the Spartans' annual "Grind Week" event that brings together former players, current players and prospects for a monster Michigan State basketball reunion and recruiting event. Costello is a four-star prospect, with a recruiting rating of 96.53 in 247Sports' composite system. He is listed at 6-foot-10, and ranks as the No. 12 power forward and No. 72 overall prospect in the class. Michigan State is one of nearly 30 schools that have offered Costello, according to 247Sports. He also holds notable offers from Boston College, Florida State, Illinois, Iowa, Maryland, Michigan, Minnesota, North Carolina, Notre Dame, Penn State, Providence, Purdue, Stanford, Syracuse, Texas, Texas A&M, Vanderbilt, Virginia Tech, Wake Forest and Wisconsin. Costello visiting Michigan State during "Grind Week" would certainly suggest he is a top priority for the Spartans. This is annually a huge event for recruiting purposes and having him on campus for this event makes it clear he's someone Michigan State's staff is prioritizing in the 2026 class. Contact/Follow us @The SpartansWire on X (formerly Twitter) and like our page on Facebook to follow ongoing coverage of Michigan State news, notes and opinion. You can also follow Robert Bondy on X @RobertBondy5.
