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Casey costello a white woman with big brown hair looking rather grumpy and severe
Associate health minister Casey Costello at Parliament. (Photo: Hagen Hopkins/Getty Images)

The BulletinFebruary 2, 2024

The curious case of Casey Costello and the tobacco taxes

Casey costello a white woman with big brown hair looking rather grumpy and severe
Associate health minister Casey Costello at Parliament. (Photo: Hagen Hopkins/Getty Images)

The proposal to freeze the tobacco excise tax came from the minister’s office, but she insists it wasn’t her idea, writes Catherine McGregor in this excerpt from The Bulletin, The Spinoff’s morning news round-up. To receive The Bulletin in full each weekday, sign up here.

Costello faces more questions on tobacco tax proposal

Who wrote the notes? It’s the question that hounded associate health minister Casey Costello all afternoon, as a story that first surfaced a week ago sprung back into life. Last Thursday RNZ’s Guyon Espiner reported that Costello had apparently sought Ministry of Health advice on freezing excise tax on cigarettes for three years. Costello denied she’d sought the advice “specifically” and said she hadn’t “looked at a freeze on the excise at all”. She had been offered advice on a range of areas related to tobacco policy, and had simply indicated that she wanted it all, she said. The notes and proposals referred to in the ministry briefing paper seen by Espiner were “not my proposals… they were not things that I had written”, the NZ First minister told the House on Wednesday.

Notes sent by Costello, but apparently not written by her

On Thursday, Espiner was back reporting that he had viewed the notes themselves and they “make it clear that a proposed freeze on excise tax for tobacco came from her office”. The notes sent by Costello to the ministry in mid-December include a proposal to “freeze the excise rates on smoked tobacco for three years starting 31 December 2023” and another raising the possibility of other tax breaks for low-nicotine cigarettes. Costello maintains the notes were not written by her, and said so again at Question Time yesterday. The five pages of notes included a range of historical NZ First policy positions, she said, and she did not know who had written them. PM Chris Luxon continues to back Costello, and has emphasised the tobacco excise tax ultimately went through unchanged.

Report shows similarities between government and tobacco industry lines on smokefree policy

The excise tax controversy could hardly have come at a worse time for a government that continues to be plagued by allegations of improper ties to big tobacco. On Thursday, Otago University researchers released a report showing how coalition statements defending the scrapping of smokefree laws mirrored the tobacco industry’s own talking points on the subject. Under a WHO convention to which NZ is a signatory, governments must not interact with tobacco companies, except “as required for regulatory purposes”. A number of current ministers have professional backgrounds with links to the tobacco industry, while two of Winston Peters’ former staffers now work for tobacco giant Philip Morris. Acting PM David Seymour told the House that there had been “no undue influence” from anyone in the industry on government policies.

Māori anti-smoking advocates open Waitangi Tribunal claim

Te Rōpū Tupeka Kore, a coalition of Māori smokefree advocates, has applied for an urgent hearing with the Waitangi Tribunal regarding the government’s repeal of the smokefree legislation. The claimants say that by failing to consult with Māori on an issue that would lead to the loss of Māori lives, the government has fallen short of its obligations under Te Tiriti o Waitangi. Claimant Shane Bradbrook tells Te Ao Māori News that while the tribunal’s decision won’t be binding on the government, he believes it’s important for the case to be heard. “In reality, they can carry on and ignore that finding, [but] what is important to do in these cases is to be accountable to our people.”

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