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Australia's landmark ruling on unbranded cigarette packaging with disturbing health warnings. - Source: Breakfast -
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New Zealand's tobacco giant says plain packaging for cigarettes could fuel a black market.
British American Tobacco - New Zealand's biggest tobacco supplier - has launched a multi-media campaign against the Government's plan to introduce plain packaging.
British American Tobacco spokesperson Nick Booth said the move could potentially backfire on the Government as it tries to deter people from smoking because of the health risks associate with it.
"We have concerns it could strip away intellectual property rights," said Booth.
"It could damage New Zealand's international trading reputation and set a troubling precedent for other industries at the same time potentially fuelling a black market."
The industry is also threatening to drop prices in order to attract customers if plain packaging is introduced.
Price could potentially be a key driver of consumer purchases if the lure of brand labels and packaging in taken away.
"Our concern is that with plain packaging, it could actually counter the Government's objectives," said Booth.
"You could actually make tobacco use more widespread by making tobacco more affordable and accessible."
He said British American Tobacco New Zealand was currently consulting with the Government on the proposed move and preparing a submission.
It is also looking at its legal options.
The company says it will spend hundreds of thousands of dollars on a print, television and radio campaign to see its message is heard.
Anti-smoking group Action on Smoking and Health (ASH) said British American Tobacco New Zealand was not concerned with other businesses and New Zealand exports.
"It's about the impact on their shareholders, because they know getting rid of the branding gets rid of their ability to market the product, particularly to new smokers," said ASH director Ben Youdan.
Tasmania considers cigarette ban
The Australian state of Tasmania could be the first governing authority in the world to ban the sale of cigarettes.
The state's Parliament is pushing for a new law to stop anyone
born after 2000 from buying tobacco.
Current smokers would still be allowed to continue buying
cigarettes.
Tasmania has the highest smoking rate in Australia.