Ms Sharon Higgins:

On behalf of the membership of IBEC, I thank the committee for the opportunity to present today. Plain packaging of tobacco is a sensitive subject. The committee will hear many views on the topic. I am here today to explain the view of Irish business. As the committee may be aware, IBEC represents Irish business, the indigenous and foreign-owned, multinational, big and small, spanning every sector of the economy, and includes tobacco companies amongst our membership.

At the outset, we wish to make it clear that IBEC supports the objective of the Minister, and this committee, to protect public health. We have consistently stated that measures to improve public health can bring with them economic benefits. To this end, for example, we supported the introduction of the workplace smoking ban in 2004. However, it is incumbent upon Government, especially at times of extreme economic difficulty, to ensure that the measures it takes are balanced and do not bring with them unintended consequences that adversely impact upon business and employment. We believe that the plain packaging proposals would have such consequences.

We believe the Bill as outlined will have substantial negative consequences well beyond the sector directly concerned and affect owners of intellectual property. As such, the proposal could affect the business community in general and not just the tobacco sector.
Of particular concern are proposals for standardised packaging of tobacco products which will remove all forms of branding trademarks, logos, colours and graphics. The brand name would be presented in a uniform typeface for all brands and the packs would all be in one plain neutral colour.
As stated in our submission, we are very concerned with the effect these proposals could have on branding rights by the removal of all forms of branding. Branding is a central part of how business communicates with its customers. It provides consumers with information on everything from product characteristics to heritage, allowing them to make informed purchasing decisions. It also allows product differentiation, which drives competition and innovation. Wide-ranging restraints on the use of branding, including colours, distinctive pack and products sizes and shapes, would set a dangerous precedent.
These proposals have the potential to affect significantly the value and purpose of a company’s intellectual property. They would cast doubt on Ireland’s continued commitment to the protection of property, in particular intellectual property and member state obligations under the Paris Convention for the Protection of Industrial Property. Companies that invest in Ireland do so based on various assumptions, including on the standard of protection afforded to property, in particular intellectual property. These measures, if adopted, would send an immediate signal to foreign countries and investors about the standard of intellectual property protection in Ireland and about Ireland’s continued commitment to the protection of property. The signal that it would send is that intellectual property protections are not nearly as solid as previously thought.
It should be noted that the regulatory impact assessment guidelines published by the Department of the Taoiseach stipulate that regulatory impact assessments should be conducted at an early stage and before a decision to regulate has been taken and that, ideally, a regulatory impact assessment should be used as the basis for consultation.It is very concerning that a regulatory impact assessment has not been published prior to a memorandum on the standardised packaging for tobacco products being brought to the Cabinet and that the preparation of this legislation so far has not been in accordance with the regulatory impact assessment guidelines. Proposals for plain packaging legislation need to be evidence based, proportionate and respectful of intellectual property rights, and they should and take into account the growth and job creation prospects of the wider economy. The absence of a regulatory impact assessment in this regard is stark.
I thank the members for listening and I look forward to questions.