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Roxon accuses tobacco giant of trick in packaging fight
Roxon accuses tobacco giant of trick in packaging fight
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Roxon accuses tobacco giant of trick in packaging fight
THE Gillard government is accusing tobacco giant Philip Morris of engaging in corporate restructuring as a ''trick'' to find new legal avenues to challenge its cigarette plain packaging laws.
The government is arguing a challenge by the company under a bilateral trade treaty with Hong Kong should be thrown out because the company's Asian division did not acquire its shareholding in the Australian arm until almost a year after the plain-packaging policy was announced.
Philip Morris Asia, based in Hong Kong, is claiming substantial compensation in its complaint that the laws have an adverse impact on its Australian investment, which was supposed to be protected under the 20-year-old treaty.
But the Attorney-General, Nicola Roxon, said the government's response, filed last night, revealed Philip Morris Australia had engaged in ''corporate restructuring'' to use the treaty to challenge the laws after they had been announced.
The response argues: ''Philip Morris Asia acquired its shares in Philip Morris Australia on February 23, 2011, both in the full knowledge that the decision had been announced by the Australian government to introduce plain packaging, and also in circumstances where various other members of the Philip Morris group had repeatedly made clear their objections … [which] had not been accepted by the government.''
The government announced it would introduce plain packaging in April 2010.
It argues to the United Nations tribunal hearing the case that the treaty does not mean existing disputes can be ''repackaged'' as claims under the treaty ''many months after the relevant government measure has been announced''. It also contends that even under the treaty, it is able to make laws to protect ''public health''.
Alongside its complaint under international trade law, Philip Morris this week joined three other tobacco companies in a High Court action against the laws, which were passed last month.
Philip Morris, which has a 37 per cent market share in Australia, said the law effectively acquired its ''valuable brands and intellectual property'' without compensation. ''Plain packaging violates the Australian constitution because the government is seeking to acquire our property without paying compensation,'' a spokesman said this week.
The world-first legislation will from next December strip all branding from cigarette packs and force them to be drab green, with graphic health warnings. Tobacco companies are fighting the laws through every possible means because they are regarded as an international test case.
British American Tobacco and Imperial Tobacco have also filed High Court proceedings.
Ms Roxon said: ''Let there be no mistake: Big Tobacco is fighting the government for one very simple reason - because it knows, as we do, that plain packaging will work.''
The government has appointed the Canadian professor Don McRae as its representative on the tribunal that will hear the case, with another appointment to be made by the company and one by the tribunal itself. The three arbitrators will decide how long the case takes, but it could be years.
The government is arguing a challenge by the company under a bilateral trade treaty with Hong Kong should be thrown out because the company's Asian division did not acquire its shareholding in the Australian arm until almost a year after the plain-packaging policy was announced.
Philip Morris Asia, based in Hong Kong, is claiming substantial compensation in its complaint that the laws have an adverse impact on its Australian investment, which was supposed to be protected under the 20-year-old treaty.
But the Attorney-General, Nicola Roxon, said the government's response, filed last night, revealed Philip Morris Australia had engaged in ''corporate restructuring'' to use the treaty to challenge the laws after they had been announced.
The response argues: ''Philip Morris Asia acquired its shares in Philip Morris Australia on February 23, 2011, both in the full knowledge that the decision had been announced by the Australian government to introduce plain packaging, and also in circumstances where various other members of the Philip Morris group had repeatedly made clear their objections … [which] had not been accepted by the government.''
The government announced it would introduce plain packaging in April 2010.
It argues to the United Nations tribunal hearing the case that the treaty does not mean existing disputes can be ''repackaged'' as claims under the treaty ''many months after the relevant government measure has been announced''. It also contends that even under the treaty, it is able to make laws to protect ''public health''.
Alongside its complaint under international trade law, Philip Morris this week joined three other tobacco companies in a High Court action against the laws, which were passed last month.
Philip Morris, which has a 37 per cent market share in Australia, said the law effectively acquired its ''valuable brands and intellectual property'' without compensation. ''Plain packaging violates the Australian constitution because the government is seeking to acquire our property without paying compensation,'' a spokesman said this week.
The world-first legislation will from next December strip all branding from cigarette packs and force them to be drab green, with graphic health warnings. Tobacco companies are fighting the laws through every possible means because they are regarded as an international test case.
British American Tobacco and Imperial Tobacco have also filed High Court proceedings.
Ms Roxon said: ''Let there be no mistake: Big Tobacco is fighting the government for one very simple reason - because it knows, as we do, that plain packaging will work.''
The government has appointed the Canadian professor Don McRae as its representative on the tribunal that will hear the case, with another appointment to be made by the company and one by the tribunal itself. The three arbitrators will decide how long the case takes, but it could be years.
here