The curious case of Casey Costello and the tobacco taxes
The proposal to freeze the tobacco excise tax came from the minister's office, but she insists it wasn't her idea.
Mōrena, and welcome to The Bulletin for Friday, February 2, written by Catherine McGregor.
In today’s edition: New Zealand u-turn on fisheries conservation causing consternation among Pacific allies; Briefings to incoming ministers lay out challenges ahead; Act minister wanted even smaller minimum wage increase. But first, the government may have thought criticism of its tobacco policy had finally blown away, but this week the controversy burst back into flame.
Associate health minister Casey Costello. (Photo: Hagen Hopkins/Getty Images)
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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New Zealand u-turn on fisheries conservation causing consternation among Pacific allies
Despite having proposed the measure last year, New Zealand is blocking an international ocean conservation rule to restrict trawling to 30% of seamount areas in the South Pacific, reports Andrew Bevin for Newsroom Pro (paywalled). The move has left our Pacific neighbours fuming, according to an independent observer at the annual Pacific regional fisheries conference in Ecuador. Fisheries minister Shane Jones says he’s keen to ensure “we’re looking after our own people, looking after jobs and opportunities for economic development to benefit New Zealand”. Seamounts are underwater mountains whose submarine landscaps are often home to highly prized fisheries.
Briefings to incoming ministers lay out challenges ahead
Newly released briefings to incoming ministers (BIMs) paint a picture of the many challenges facing the coalition government and the country as a whole. BIMs are prepared by government department officials to get new ministers up to speed on key issues in their portfolios, and were received by ministers late last year. The Herald has a good rundown of the highlights of each BIM – here’s a few: The National Emergency Management Authority warns of a 25% chance of a major Hikurangi Subduction Zone earthquake in the next 50 years, potentially “leaving tens of thousands of people dead, injured or displaced from their homes”. Corrections says the prison service is seeing an increase inmates with extremist views, and “more sophisticated gangs and domestic and transnational organised crime groups”. And Defence says high levels of attrition mean the NZDF is currently 1300 uniformed personnel short.
A year on: decoding the cost of major weather events
How do you measure the cost of the Auckland Anniversary floods and Cyclone Gabrielle? A year on from these catastrophic weather events, NZIER economist Roshen Kulwant joins When the Facts Change host Bernard Hickey to discuss which costs we're measuring, what we’ve learnt, and what still needs to be done.
Click and Collect
The minimum wage is rising by 2% to $23.15 – the smallest increase in a decade. MBIE had recommended a 4% increase, roughly in line with inflation, while minister for workplace relations Brooke van Velden wanted 1.3%.
Chlöe Swarbrick is to hold a media conference at 11am, where she is widely expected to announce her candidacy for the Green Party co-leadership.
Auckland Light Rail disestablishment likely to cost millions.
The planned 39% tax rate for trusts will mean tens of thousands in extra tax to pay, despite only around one in 10 trusts having income over $180,000.
Feeling clever? Click here to play 1Q, Aotearoa’s newest, shortest daily quiz.
Jamie Tahana looks back on 10 of the most remarkable Waitangi Days in Aotearoa’s recent history. The first recommendations for the future of Wellington's housing are in – and they’re a disaster, writes Joel MacManus. Carwyn Jones explains the changing scope of the Waitangi Tribunal. Alex Casey reports on Shortland Street's search for a mystery baby that started it all. Shanti Mathias recaps everything you need to know about the new recycling rules (no lids!). Hera Lindsay Bird advises a disillusioned reader wondering if she should become a sex worker.
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Sporting snippets
New Zealand is among the countries where charges are set to be filed over the online abuse of players and match officials during last year’s Rugby World Cup. Prosecutions are also pending in South Africa, France, the UK and Australia, where a man has also already been charged.
ACC has introduced new guidelines for concussions in community sport, including a minimum three weeks away from competition when a concussion is suffered.
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