Bills

Tobacco Products Regulation (E-Cigarettes and Review) Amendment Bill

Second Reading

Adjourned debate on second reading (resumed on motion).

Dr HARVEY (Newland) (17:41): I was speaking about some of the aspects of the bill. The bill includes a requirement to license the sale of e-cigarette products in line with the licensing of tobacco products. This means that the only additional revenue from this proposal would be from current e-cigarette retailers who do not currently hold a tobacco merchant's licence under the act and who wish to continue selling e-cigarettes. While the exact number of specific e-cigarette retailers is not known, the number is estimated to be relatively low compared with tobacco retailers. In relation to enforcement, these products will be brought within the regulation of the act in the same way tobacco products are regulated. An extension of current enforcement activities will be required to achieve compliance for the regulation of e-cigarettes.

It is also worth noting that, under this bill, shisha tobacco has been included in the definition of a tobacco product. Shisha tobacco is smoked through a water pipe and usually contains tobacco sweetened with fruit or molasses sugar, which gives it a fruity aroma. The Tobacco Products Regulation Act 1997 already incorporates shisha under the definition of 'tobacco product' in the act. Consequently, offences rating to tobacco products, such as smoking in a smoke-free area or selling tobacco to minors, also extend to shisha products.

The government is including a specific definition for shisha tobacco to make it clear to those businesses involved in the sale or use of shisha that the tobacco legislation extends to these products. Clear legislative protections against the sale of shisha to minors and the use of shisha in smoke-free areas support both compliance and enforcement.

In summary, it is clear from a lot of the research that has been done to date in this area that e-cigarettes cannot be assumed to be completely safe. Whilst it is quite likely that they pose much less of a risk than tobacco smoking, there is still much more work to be done to understand the impact of e-cigarettes on health; its potential role in acting as a gateway to tobacco smoking, particularly for young people; its potential role in tobacco smoking cessation; and in a number of other areas. Therefore, it is appropriate that these products be regulated. I commend the bill.

Mr PEDERICK (Hammond) (17:43): I rise to speak to the Tobacco Products Regulation (E-Cigarettes and Review) Amendment Bill 2018. I want to make a brief contribution with regard to this legislation. The bill seeks to amend the Tobacco Products Regulation Act 1997 to enhance the operation of the act and address the lack of regulation of electronic cigarettes, commonly known as e-cigarettes, in this state. The bill aligns with the recommendations of the Select Committee on E-Cigarettes and the positions of leading public health bodies, including the National Health and Medical Research Council, on the need for governments to act to regulate e-cigarettes. It will also bring the e-cigarette legislation in South Australia in line with interstate legislation.

The fact that South Australia is the last state in Australia to regulate e-cigarettes is a stark demonstration of the former Labor government's low priority on public health. Even after receiving a bipartisan select committee report in February 2016, they left office two years later without legislating in this area. The bill introduces a range of administrative enhancements to ensure that the legislation is up to date and to improve the functioning of this important legislation. These amendments emanate from an independent review of South Australian tobacco control legislation, which was completed in 2017.

The legislative review of the act in 2017 identified opportunities to improve the operation of the act, including consistency between the act and its regulations, between tobacco control and other South Australian legislation and between tobacco control legislation in other jurisdictions, and also identifying provisions that are no longer relevant. The bill addresses the review recommendations, which will strengthen the operation of the act more broadly. It also includes increases in penalties and expiation fees for more than 40 offences. It is interesting that maximum penalties and expiation fee levels have not been adjusted since 1997.

We have seen a lot of debate about where this regulation should be. The safeguards under this legislation include bans on the following: sales of e-cigarettes to children; the retail sale of e-cigarette products without a licence; indirect sales of e-cigarettes, such as internet sales; e-cigarette sales from temporary outlets, sales trays and vending machines; the use of e-cigarettes in areas that are smoke-free under the act; advertising, promotion, specials and pricing promotions for e-cigarettes; and also retail point-of-sale displays of e-cigarettes.

Just as the member for Newland indicated, there is a discussion around shisha tobacco, and that has been included in the definition of a tobacco product. I have always been intrigued with the smoking of shisha tobacco, which is smoked through a water pipe and usually contains tobacco sweetened with fruit or molasses sugar, giving it a fruity aroma. That will also come in under the legislation.

With regard to licensing and enforcement, the bill includes a requirement to license the sale of e-cigarette products in line with the licensing of tobacco products. This means that the only additional revenue from this proposal will be from current e-cigarette retailers who do not currently hold a tobacco merchant's licence under the act and wish to continue selling e-cigarettes. While the exact number of specific e-cigarette retailers is not known, the number is estimated to be relatively low compared with tobacco retailers: approximately 30 to 50 new licences.

In relation to enforcement, these products will be brought within the regulation of the act in the same way tobacco products are regulated. An extension of current enforcement activities will be required to achieve compliance for the regulation of e-cigarettes. With that contribution, I commend the legislation and look forward to its passage through the house.

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (17:49): I will not say much now. I will make a short contribution at the third reading stage. It is my understanding that the shadow minister would like to go into committee.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

Mr PICTON: In relation to consultation that has occurred, a question was raised in the other place regarding any consultation that had happened in relation to tobacco companies or their representatives. I have received an answer on notice since the debate in the other place from the Minister for Health and Wellbeing saying, 'Neither my office nor my department have received representations from tobacco companies on the Tobacco Products Regulation (E-Cigarettes and Review) Amendment Bill 2018.'

This says that no representations have been made. Can the minister clarify if that means that there have been no discussions, no consultation, no meetings and no engagement of any type between the government and tobacco companies in relation to this bill or in relation to other public policy matters?

The Hon. D.C. VAN HOLST PELLEKAAN: Despite the fact that I do not quite make a link between that question and clause 1, which is the short title, I am happy to confirm that I am advised that there has been absolutely no communication whatsoever on this bill between the minister and those tobacco companies.

Mr PICTON: Have there been any discussions between the government and tobacco companies on any matters since the election, including whether any ministers have attended events with tobacco companies, such as fundraisers?

The Hon. D.C. VAN HOLST PELLEKAAN: I am not able to get any advice on that here at the moment. I am not awareof all the ministers' or government MPs' diaries. I am not sure if that is even relevant to the bill, given that there has already been a commitment made that there has been no communication whatsoever with regard to this specific bill. I can assure you that I have not had anything to do with tobacco companies or accepted any hospitality or anything like that, but I really cannot answer the question any better than that.

Clause passed.

Clause 2.

Mr PICTON: In relation to when this legislation is to be enacted, I am wondering if the minister can outline—presuming that this is hopefully going to pass within the next seven minutes—when the government would seek to have this legislation in place and, in particular, when penalties under these provisions would be in place for retailers and the like.

The Hon. D.C. VAN HOLST PELLEKAAN: My advice is that it is the Minister for Health and Wellbeing's intention that this bill, this legislation, will come into effect, in the first quarter of 2019 and that all penalties and fines would apply from that point onwards. We have certainly said as a government that there is some consultation to do on some of that.

The other thing to be sure is clear in my answer is that the six-month transition period for online sales, signage and in-shop marketing commences when the legislation comes into effect, so that would last through the first six months of its actual implementation.

Sitting extended beyond 18:00 on motion of Hon. J.A.W. Gardner.

Mr PICTON: To clarify with the minister, it is the intention of the minister that the bill be enacted in the first quarter of next year and that there be a six-month grace period, so within at least, at the very latest, nine months presumably of 2019 all provisions of the bill would be enacted and they all would be able to be enforced; is that correct?

The Hon. D.C. VAN HOLST PELLEKAAN: Yes. It is very important to have this 100 per cent right. I am advised, as I said before—and I will overlap a bit and perhaps add a bit more—that it is the Minister for Health and Wellbeing's intention to have the new legislation come into force during the first quarter of 2019. The bill will be fully implemented from that point in time, with the exception of a six-month transition period that applies to online sales, which, under this legislation, are prohibited.

There will be a six-month transition period—a period of grace, as you said—and that will also apply to signage and in-store retail marketing material, which will also have a six-month transition period. So everything will be in place from whenever the legislation is enacted, which is expected to be the first quarter of the next calendar year except for those two things, which, whenever it commences, will have a six-month grace period from that point onwards.

Mr PICTON: And then after that they all will be—

The Hon. D.C. VAN HOLST PELLEKAAN: Yes. Just to be very clear for the shadow minister, from six months after the legislation is actually enacted the transition period for those two components will have expired, and from that point onwards it is expected that everything will be operating fully within the legislation.

Clause passed.

Clauses 3 to 6 passed.

Clause 7.

Mr PICTON: One of the additional things the government has added into the previous government's bill is in relation to shisha, which was discussed in the second reading. Obviously the government is saying that this is to clarify arrangements in terms of shisha. Has the government, SA Health or its officers identified any sites that they believe are currently in breach of the Tobacco Products Regulations?

The Hon. D.C. VAN HOLST PELLEKAAN: The intent of this with regard to shisha is not about changing the legislation or regulations but about clarifying it. It is the intention to deal with shisha-supplying businesses in the same way as tobacco and now in the same way as e-cigarettes. This was an opportunity to make it more explicit with regard to the way that shisha-providing businesses are dealt with. With regard to the last part of your question—

Mr PICTON: Have you identified anything?

The Hon. D.C. VAN HOLST PELLEKAAN: —is the government aware of any particularly problematic businesses in this area, I will say up-front that I am not aware of any. I am advised that there is not a list handy, even if one may or may not exist. I am happy to take it on notice to see whether there is information like that that could or should be provided to the shadow minister by the minister.

In addition to that, the SA Health enforcement team has undertaken a number of enforcement actions in an attempt to increase the compliance of shisha businesses with tobacco laws. Along with numerous meetings with business owners, they have undertaken over 40 inspections of 17 shisha bars between 2016 and 2018. This has resulted in three expiation notices being issued, as well as using multiple directives to make changes to improve compliance.

I say again that, with regard to specific business outlets, I do not have that information with me. I am happy to take it on notice and, if I could or should supply that afterwards, I am happy to do that as soon as possible. I presume that having that list would not change the opposition's opinion on whether or not it would support this legislation.

Clause passed.

Remaining clauses (8 to 33) and schedule 1 passed.

Schedule 2.

Mr PICTON: In relation to this schedule, and for those following at home, this is where the penalties under the act have been changed and slightly increased generally for a whole range of offences. As I understand it, the minister has said that this is subject to a further review and that he might come back with further changes to the penalty provisions.

Can the minister provide an update in terms of when he expects that that is going to come back to the house or the council in terms of amendments to the other penalty provisions following the minister's review. I think you were chatting, but when are you going to come back with the next lot of changes to this?

The Hon. D.C. VAN HOLST PELLEKAAN: Good question, shadow. As I said, it is the government's intention to do further consultation on the penalties. As you would be aware, there were some views canvassed in the other place on that. With regard to when will the government come back, I do not have a specific date but, again, I am advised that it is the minister's intention to have this legislation enacted in the first quarter of 2019, so the penalties would have to be settled by that point in time. That is probably the best guide I can give you in regard to time lines.

Mr PICTON: I think in the other place there was some discussion as to whether the government had indicated and discussed if some of these could be put as higher in this current bill. Can the minister outline whether he is aware of where the discussion is in terms of making any of these provisions higher at this stage before that review takes place later on?

The Hon. D.C. VAN HOLST PELLEKAAN: No. It is my understanding that in the other place—and not reflecting on the outcome from there—there was discussion about should the penalties be linked directly to CPI or should they be increased and then linked to CPI. The minister has not made any commitment in regard to that or indicated in any way where he intends to land, but he has said that he will consult on those matters between now and the enactment of the new legislation should it pass this chamber.

Mr PICTON: This will be my last question for the week, pre-empting what the outcome of the answer might be. What communication does the government have planned in terms of communicating these changes to these penalties? I guess they will probably need to communicate with e-cigarette people and tobacco retailers for the new penalties that will be in place.

The Hon. D.C. VAN HOLST PELLEKAAN: I am advised that the minister intends to deal with the retailers and the public. Of course, retailers have licences, or perhaps some will shortly have to have licences that they did not have before. They will be advised or consulted with in writing. The public will be advised. We will try to get the message out through commercial and other media opportunities. There is no intention whatsoever to consult with the tobacco companies, just linking that answer back to something we discussed before. The minister will do everything that he possibly can to seek information and provide information to the sector, but the focus of that will be on the retailers of shisha, e-cigarettes and tobacco, and the public at large.

Schedule passed.

Title passed.

Bill reported without amendment.

Third Reading

The Hon. D.C. VAN HOLST PELLEKAAN (Stuart—Minister for Energy and Mining) (18:09): I move:

That this bill be now read a third time.

I want to be very brief. A lot of this has been canvassed in both houses. As both the minister representing the minister and a local member of parliament, I want to make it very clear that e-cigarettes in particular are just being brought in line with normal, current, existing tobacco sale requirements. I have had people contact my electorate office, and I know that other members of parliament have as well, asking why we are outlawing e-cigarettes. It is very important for people to understand that we are not outlawing e-cigarettes.

We are saying that people who are not entitled to buy tobacco cannot buy or use e-cigarettes. We are just trying to bring it in line with existing requirements in regard to tobacco. We are trying to tidy up or perhaps clarify the rules and regulations as they apply to shisha. People who are below the age at which they can buy tobacco might feel aggrieved because previously they could get e-cigarettes in South Australia and from when this bill is brought into effect early next year they will not be able to, but this is not about outlawing e-cigarettes.

This is not about preventing people trying to use e-cigarettes as a way of helping them quit smoking from being allowed to do that. Anybody who is legally smoking can legally use e-cigarettes. It is a very important thing to get clear, and I just want to make that abundantly clear. We are just bringing the rules into line; we are not outlawing e-cigarettes.

Bill read a third time and passed.

At 18:11 the house adjourned until Tuesday 27 November 2018 at 11:00.