The implications for members of the Smokefree legislation

As of 1 January 2023, a significant change has taken place in New Zealand’s tobacco industry. The Smokefree Environments and Regulated Products (Smoked Tobacco) Amendment Act has come into force, meaning that the sale of smoked tobacco products is now limited only to approved retail outlets. Furthermore, the Act has now prohibited the sale or supply of smoked tobacco products to individuals born on or after 1 January 2009.

MTA anticipates that this will have a significant impact on its members in the fuel retail sector. Under the new regulations, only a limited number of retail outlets will be permitted to sell smoked tobacco products. The outlets will have to meet strict criteria to be approved, including obtaining a license from the Ministry of Health and complying with specific storage and display requirements.

Distribution of stores

The proposed regulations limit the number of stores allowed to sell smoked tobacco products to 600 across New Zealand, with the regulations defining the distribution of these stores based on whether an area is classified as rural or urban. For example, in Taranaki, there are several urban areas – one city and then some smaller towns, such as Hāwera, and rural areas between these. An example of how these stores therefore might be distributed in Taranaki urban and rural areas can be seen in the image on the next page.

Service stations that wish to continue selling smoked tobacco products (whether they are in a rural or urban area) will therefore have to vie for one of the store allocations in their designated region. It is important to note that the pins on the graphic above are only general locations (not existing stores) as no decisions have been made by the Ministry of Health yet.

Criteria that retailers must meet

The responsibility of assessing applications to sell smoked tobacco products lies with the DirectorGeneral of Health. The proposed regulations establish the essential criteria that applicants must meet to be considered for approval. Importantly, the DirectorGeneral must be satisfied that:

• the applicant is fit and proper and is a New Zealand resident, or for an entity, each responsible person is fit and proper, and the entity is carrying out business in New Zealand or incorporated or registered under New Zealand law and,

• the retail premises are a fixed permanent structure and appropriate to operate from and,

• that the applicant’s security, training, delivery and other business systems meet any requirements in regulations and,

• any other relevant regulatory requirements are met. If the proposed regulations go ahead, service stations that want to continue selling tobacco will need to make sure they jump through some hoops to be considered as tobacco retailers. Even if they manage to meet these criteria, it doesn’t necessarily mean that they’ll get the green light.

Summary

The outcome of this collaboration remains to be seen; however, MTA is committed to supporting its members throughout the transition to a smokefree future.