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Tony Blair being the opportunist and in need to cut the spiralling costs of
our NHS service may see this as way forward. Free tobacco products via the
NHS prescriptions! jacques
-----Original Message-----
From: Sandeep Vaidya (LMI) [mailto:[EMAIL PROTECTED]]
Sent: Wednesday July 18 2001 12:19
To: STOPNATO (E-mail)
Subject: How to cut health care costs? Philip Morris has the answer
[WWW.STOPNATO.ORG.UK]
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Critics Assail Philip Morris Report on Smoking
Lee Dembart
International Herald Tribune Wednesday, July 18, 2001
Tobacco Giant's Analysis Says Premature Deaths Cut Costs in Pensions and
Health Care
The tobacco giant Philip Morris was flayed Tuesday for an economic analysis
concluding that smoking is good for government coffers because it causes
people to die prematurely, thereby saving pension and health care costs.
In a report to the government of the Czech Republic that was made public
Monday, the tobacco company estimated that the net economic benefit of
smoking there was about 5.82 billion koruna ($147.1 million) in 1999.
The report put the company's argument starkly: "Our principal finding is
that the negative financial effects of smoking - such as increased health
care costs - are more than offset by positive effects such as excise tax and
value-added taxes collected on tobacco products."
The monetary estimate of benefits was based on the fact that the average
smoker dies 4.3 years to 5.23 years earlier than a nonsmoker and is
therefore less of an economic drain.
The report, which was prepared by the consulting firm Arthur D. Little
International, appeared to be one of the first direct acknowledgments by a
tobacco company that smoking kills. The industry has previously recognized
that cigarettes cause serious diseases, including cancer, but this report
accepted without argument that smokers die prematurely. The report also
acknowledged that second-hand smoke can be a health threat to nonsmokers.
The British-based group Action on Smoking and Health said the study was "a
sort of extermination program for the newly retired."
"The whole exercise is repellent and should be dismissed," said John
Connolly, its public affairs manager. "Philip Morris is whispering in the
ear of the Czech government, saying: 'Look, we can help you deal with those
expensive old people, so why don't you go easy on controlling smoking?'"
Philip Morris, which makes 80 percent of the cigarettes sold in the Czech
Republic, said it received the report in November and gave it to the Czech
government recently in response to Health Ministry claims that smoking
constitutes an economic drain.
The company said that the report was only intended as economic data.
"We deeply regret any impression that premature death of smokers could
represent a benefit for society," Remi Calvet, communications director for
Philip Morris at European headquarters in Lausanne, Switzerland, said in a
statement. "Tobacco is a controversial industry, but we are still an
industry and sometimes we need some economic data on our industry."
Ales Janku, head of public relations at Philip Morris, Czech Republic, said
the company thought Parliament was going to raise taxes on cigarettes in an
effort to harmonize taxes with the European Union. Czech cigarette taxes are
42 percent compared with EU recommendations of 59 percent.
Otakar Cerny, a spokesman for the Czech Health Ministry, dismissed such
arguments. "No government can calculate with reports like that," he said.
"The health minister leads an irreconcilable struggle with smoking so that
Czech citizens live long and healthy lives."
In a statement released in Washington, Matthew Myers, president of the
Campaign for Tobacco-Free Kids, said, "Philip Morris's cost-benefit analysis
of the consequence of smoking represents not only bad economics but a
callous disregard for life."
Michelle Di Leo of the British Lung Foundation asked, "What will Philip
Morris argue next, that we should put people down at 50 because it would
save us all a lot of money on health care?"
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