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Memorandum submitted by the British Retail Consortium (H 09)
Introduction
1. The British Retail Consortium (BRC) is the lead trade association representing the whole range of retailers, from the large multiples and department stores through to independents, selling a wide selection of products through centre of town, out of town, rural and virtual stores. We represent approximately 80% of the grocery retailing sector, the vast majority of which sells tobacco products as part of its retail offer.
2. We are grateful for this opportunity to provide written evidence to the Health Bill Committee and to set out our views on the key issues of importance to our members contained in the Bill. Specifically, the BRC's evidence is concerned with Part 3 of the Bill and the proposed ban of the display of tobacco products in shops.
Overview of BRC Position
3. The BRC does not believe that the ban on display of tobacco products is necessary. We believe that this will be a costly measure for retailers and that it will add an undue burden on retail staff. Also, we do not believe there is a strong evidence base for this legislation or that it will have a significant impact on the number of young people taking up smoking.
4. The BRC believes that there are other measures that the Government should focus on to meet its objective to reduce the prevalence of smoking. In particular we believe the prohibition of proxy purchasing and more emphasis on tackling the illicit sale of tobacco would be more effective in this regard than a ban on the display of tobacco products. Our members are supportive of public health campaigns to reduce smoking, and many of our members are working with the health authorities to offer advice and products on how to give up smoking.
5. The BRC is also concerned about the amount of
time suggested for retailers to implement these changes. Whilst we understand the rationale behind
allowing smaller shops longer to comply, we think that larger stores will find
it extremely difficult to implement the regulations by the 2011 deadline. Collectively there are over 6,000 stores in
the
6. Furthermore, the BRC is disappointed that currently there is no detail on what the ban on display will look like and how prescriptive this will be. We believe further detail should be on the face of the Bill so parliamentarians were able to discuss the changes and the potential implications they will have for businesses with more certainty and knowledge.
Background information
7. The BRC is supportive of the Government's aim to reduce the prevalence of smoking and our objection to this legislation is due to the burdens it will place on members and the lack of firm evidence to suggest it is necessary.
8. Despite the clear damage tobacco does to a smoker's health, tobacco is a legal product and, as such, retailers should be able to sell it and meet their customers' demands, as long as they do so legally and responsibly.
9. BRC members take their legal obligations seriously. Our members operate Challenge 21 or Challenge 25 policies to help staff prevent the sale of tobacco products to those underage and many have implemented systems to help staff use this policy, such as through the use of EPOS till systems. We have demonstrated in alcohol test purchasing figures that our members have been extremely effective in curtailing sales to under age persons.
10. The BRC is committed to working with Government as tobacco policy is developed. We were active consultees when the laws surrounding the sanctions available if an underage sale has been made were amended vial the Criminal Justice and Immigration Act and we are keen to help the Department of Health understand the way in which retail businesses operate to ensure any new regulation is as workable as possible.
Specific Concerns
Evidence
11. The BRC is disappointed that the Government has
relied on evidence from overseas markets to support its position. We do not accept that the experiences of
12. As the Committee is no doubt aware, the
Cost
13. The introduction of a ban on the display of tobacco products will add significant cost burdens on all shops, be they large supermarkets or small corner shops. The BRC has consulted members on this issue and we have seen a range of costs suggested from a minimum of £1,000 to over £20,000 per store.
14. The BRC believes any estimate of costs should include not only the cost of equipment but also any installation and on-going costs retailers will have to pay while complying with this legislation. Any costing must take into account:
· The shipping and fitting costs for any display equipment. · The sustainable disposal of current equipment · The need for permanent and robust units · The need for professional units in keeping with the type of retail outlet · The significant cost for independent retailers or those with small chains, who will be unable to benefit from bulk purchase discounts.
15. Even using the Government's own Regulatory
Impact Assessment (RIA) of £1,000 per store, this legislation could cost the
(IGD figures state there are 99,585 grocery
retail stores in the
16. We believe that the cumulative cost as well as the individual cost to stores will be difficult to absorb for many chains and sole traders.
Practical Concerns
17. Any regulations banning the display of a product must take into account the realities of stocking a store, accepting deliveries and serving customers and therefore must be suitably flexible. Whilst it is impossible for the Committee to scrutinise the display ban in this regard due to the regulations not being published at this stage, the BRC is keen for the Government to understand the way in which retail businesses operate as the regulations are drawn up.
18. Clause 7A of the Health Bill does not just prohibit the display of tobacco products in a shop but it also creates a new offence of displaying tobacco to a person under 18. This new age restriction goes further than any other existing age restrictive legislation. For example knives and alcohol cannot be sold to anyone under 18, but they can be displayed on store shelves. The BRC believes that by creating a new offence where a crime is committed if an employee shows tobacco products to someone under 18, even if they do not actually sell this product to them, the Government is taking this too far and is going beyond its intended reasoning for this legislation. Many retailers make full use of EPOS till systems to help staff remember to check the age of their customers. By adding this offence, this helpful check will be too late and significant penalties could be imposed that are not proportionate.
Timing
19. Currently, the Government is suggesting small stores will need to implement the display ban by 2013, and larger stores will have to do so by 2011. Whilst definitions are as yet unconfirmed, the qualification used for Sunday Trading legislation is likely to be used. The BRC does not believe that 2011 will give retailers long enough between the regulations being finalised and enforced to refurbish all their stores. Given the number of stores that will need changing (over 6,000) greater flexibility should be allowed to enable retailers to draw up appropriate designs, ensuring the plans will be legally compliant, purchase the correct equipment and employ people to carry out the work. Retailers would certainly start to work on refurbishment as early as possible (they would have to, given their large estates) and greater flexibility would enable them to trail various solutions and learn from each other, without being fearful that they were not legally compliant.
Tobacco strategy
20. The BRC is disappointed that the Government is pressing ahead with this display ban without considering the wider issues that arguably contribute more to the prevalence of smoking than seeing products in a shop. Currently, for example, it is not illegal for a young person to attempt to buy tobacco, nor is it illegal for a person over the age of 18 to buy tobacco for someone else that is underage. We believe that the Government should consider introducing these offences, which exist in relation to alcohol. These measures would help bring about the culture change that is required to prevent young people from starting to smoke.
21. We understand the Government will be publishing a wider strategy later this year. We believe that it would be more sensible for the Government to focus its attention on a comprehensive strategy, rather than imposing this display ban on the retail sector.
June 2009 |