Game over for Australia

Incredible scenes in Australia where illicit sales officially now make up 80% of the tobacco market. I wrote about this for The Critic...

 

The growth of the black market could have been prevented if the government had listened to economists, historians and criminologists. Instead, they fell under the spell of dogmatic fanatics masquerading as “public health” experts. As predictable as this fiasco was, the statistics in the ABS report are still breathtaking. The black market share of the tobacco trade went from 12 per cent in 2017 to 26 per cent in 2020 and then exploded after the pandemic from 40 per cent in 2022 to 80.6 per cent in 2025. In the same period, the quantity of nicotine consumed in the country rose by almost 40 per cent. The price of legal cigarettes nearly tripled between 2016 and 2025 while tobacco duty revenue more than halved. 

 

And on my Substack...

 

The blame lies squarely on the charlatans masquerading as public health experts who opposed the legalisation of vapes and pushed for ever higher tobacco taxes while scoffing at the idea that any of the obvious unintended consequences would come to pass.

In a sensible country, these people would have gone into hiding to live the rest of their lives in disgrace.

 

 

 

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Extended Producer Responsibility, more government failure

Extended Producer Responsibility is a boring name for a boring regulation, but it is worth understanding if you want to see how the government squeezes the life out of British industry and contributes to the cost of living “crisis”. 

The story begins, as such stories often do, with Theresa May and Michael Gove. After watching too many David Attenborough documentaries, Gove became obsessed with recycling. His first idea was to introduce a bottle deposit return scheme, which would have had huge operational costs and been largely pointless since everybody has a recycling bin at home. His second idea was Extended Producer Responsibility (EPR), which he said would “cement our place as a world leader in resource efficiency” by taxing businesses for every tonne of packaging they produce, on the basis that “the polluter pays”. Seven years and four Prime Ministers later, EPR came into force last April.

The logic of EPR is not entirely without merit. A company that produces packaging is not actually a “polluter” — although the end user might be — but there is an argument for making companies internalise the costs of recycling the packaging they produce. In effect, the policy takes billions of pounds from manufacturing firms and gives it to local authorities to spend on recycling and landfill.

The problem is one that is often overlooked by politicians. Since businesses get their money from consumers, an increase in costs to business is bound to lead to an increase in prices. Since it is consumers who pay the higher prices, the real question is whether it is better for recycling of widely used packaging to be paid for by individuals as taxpayers or by individuals as shoppers. 

Read the rest at The Critic. 

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