Tobacco laws to cost Victorians

Australian Retailers Association (ARA) has warned Victorian retail outlets will need to make costly adjustments to their store configuration and operating procedures to comply with a proposed retail display ban on cigarette packets.

ARA Executive Director Russell Zimmerman said the proposed retail display ban on tobacco products would cost Victoria's small retailers $182 million in the first year.


"The total bill would be shared across 5000 convenience stores and 1000 grocery outlets in Victoria that would each be liable for up to $10,000 to meet their obligations under the planned tobacco display laws.

"In an indicative regulatory cost analysis by Deloitte, it was also found that a Victorian retail display ban would result in recurring costs of $116 million. This translates into the average 'mum and dad' convenience store having to bear ongoing costs of up to $17,560 per year, due to deterioration in customer transaction and service times.

"Under the proposed regulations, store owners can be fined or banned from selling tobacco products if cigarette packets are within the view of customers, which will result in a complete refit of current displays, as well as ongoing training, customer service and restocking issues.

"This is potentially a massive financial burden for small retailers to carry when we consider there is no international evidence that restricting the display of cigarettes actually reduces the uptake of smoking. In fact, New Zealand has dismissed similar regulations based on the huge expense and lack of supporting evidence.

"While retailers fully appreciate the health dangers associated with smoking, the financial impact of these regulations is not a public health issue. The ARA's concern is about an increased cost to retailers when they can least afford it.

Zimmerman said that to ease the burden and cut costs for small retailers the Brumby Government must reconsider and make amendments to the proposed tobacco display regulations to allow retailers to display price tickets or labels, use price notices at more than one point of sale and use product catalogues.