Jump to full article: AAP (Australian Associated Press) (au), 2009-10-21
Intro: A REPORT that reveals the $31 billion social cost of smoking to the Australian economy is a mandate for tobacco taxes to be hiked, health groups say.
The Cancer Council of Western Australia released what it says is the first independent analysis of economic arguments put forward by the tobacco industry.
The report, prepared by two health economists, assessed the economic impact of both the tobacco industry and public health measures aimed at reducing tobacco use.
It put the economic contribution of the tobacco industry at about $1 billion a year and the estimated social costs of smoking at $31 billion. . . .
Tobacco industry studies estimate cigarette and tobacco retailers provided 500,000 Australian jobs.
But Prof Lapsley said the number was overstated and the study found the industry was a minor and declining contributor to manufacturing output and employment, with profits largely remitted to parent companies overseas.
"The figures put forward by the tobacco producers include jobs of those who sell materials to the industry as well as those at the retail level for whom only a fraction of their business depends on tobacco," she said.
"It also ignores the fact that money saved by quitting or reducing smoking will be spent on other goods and services, themselves generating employment and tax revenues."
Public Health Association of Australia president Mike Daube said the tobacco industry's arguments were misleading and based on self-interest.
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