Cigarette companies that made payments to Melbourne bars and clubs to encourage use of their products will not be prosecuted.
A spokeswoman for the ministry of health added that the minister had received legal advice through the Department of Human Services that the payments did not breach the Victorian Tobacco Act (VTA). She added that "the minister was advised that exclusive retail arrangements would not in itself constitute “promotion” of a tobacco product, so long as that display adheres to the advertising and display restrictions of the Tobacco Act. The minister was advised the mere display of a limited range of product would not constitute promotion."
The State Government launched an investigation last August after allegations that “secret payments” had been made by Philip Morris, Imperial Tobacco Australia and British American Tobacco Australia to secure exclusive sales rights at bars and clubs, and to support open-air licensed venues. From 1 July, indoor bars and clubs will be subject to a smoking ban.
Layers engaged by anti-smoking groups had alleged such payments might breach the VTA, which prohibits the giving of "any sponsorship, gift, prize, scholarship or like benefit in exchange for the promotion of, or an agreement to promote, a tobacco product".
Breaches of the provision carry fines of up to A$ 500,000 per offence. (aptp)