Contribution
My Lords, I will speak briefly on amendments in this group in the name of my noble friend Lord Bethell and the noble Baroness, Lady Walmsley, before turning to the amendment in my name and the name of my noble friend Lord Howe. They propose the establishment of a new licensing scheme for the distribution of tobacco, vape and nicotine products in addition to the retail licensing scheme already provided for under the Bill.
While I understand the rationale behind these amendments, I am sure it will come as no surprise that we have some concerns. My noble friend Lord Howe and I have already shared concerns about the impact of the regulatory framework of this Bill and the burden it will place on legitimate businesses, especially small retailers and distributors, which are already subject to extensive compliance requirements under existing law, and which will be beset with further regulation under the proposals outlined in the Bill.
However, we understand the underlying concerns behind these amendments about the illicit market, so we believe that they are helpful in probing the Government to understand where they believe there are enforcement gaps and whether they have evidence of gaps in enforcement at the wholesale level of the supply chain. I am, therefore, grateful to my noble friend Lord Bethell and the noble Baroness, Lady Walmsley. Our understanding is that there are concerns over enforcement in relation to illegal imports at the customs level and illicit point-of-sale activity. These amendments give noble Lords an opportunity to ask the Minister where the Government believe the enforcement gaps are, and whether they currently exist.
In addition, if the Government have identified these gaps in enforcement at the wholesale level, do they believe that they could be best tackled by having a new, separate distributor licensing scheme, or do they share concerns over creating a second, parallel system operating alongside the retail one? My noble friend Earl Howe and I are concerned that such duplication risks adding unnecessary administrative complexity for local authorities, trading standards and legitimate operators alike. We also have concerns over how these two systems would interact, and whether businesses operating both wholesale and retail functions would be required to hold multiple licences and pay multiple fees. We are interested in the views of the Minister about our concerns.
Amendment 190, in my name and that of my noble friend Earl Howe, would require the Government to prepare and publish a national illicit tobacco and vape enforcement strategy within one year of the passing of this Act. This is a probing amendment—we have suggested one year; it could be slightly longer or shorter. We believe that this is a practical proposal which chimes with the intentions and ambitions of the Government on this Bill. Indeed, it is a concern that has been raised by noble Lords on all sides of the Committee. All noble Lords are concerned about illicit sales of tobacco and vapes, wherever we sit in this Room.
While we entirely share my noble friend Lord Bethell’s concern about the rise in illicit trade, we believe that the Government need a far more comprehensive view of how products enter, move through and are sold within the United Kingdom. They must develop an overall strategy to cover the stages of the supply chain from the point of import to transportation within the UK and, ultimately, to the sale of these products on our streets and online. In short, we need a coherent and strategic plan of enforcement that gives an overview, rather than one which tries to attack certain bits. Once we have the overview, we can look at where the gaps in enforcement exist and seek to plugs those gaps.
The trade in illicit tobacco and vape products is a serious and growing concern. We have heard throughout Committee that the introduction of a generational ban and other prohibitions in this Bill may, if not properly managed, risk pushing more activity underground into the illegal market. No noble Lord wants this to happen. No one benefits from a thriving illegal market but criminals and those that seek to circumvent the law. It undermines legitimate businesses, deprives the Exchequer of revenue and exposes consumers—often young people—to unregulated and potentially dangerous products.
That is why we believe it is essential for the Government to set out clearly how they intend to meet this challenge, and to explain who will lead, how the agencies will co-ordinate, what resources will be allocated and how success will be measured. We have attempted to be careful and sensitive in drafting this amendment; it does not demand an immediate response but sets out a reasonable and deliberate timetable. It gives one year, or perhaps a bit more, for the Government to prepare, consult on and publish a coherent strategy. That would give Ministers the time to review the evidence, engage with enforcement agencies and draw together the different strands of policy that are already being developed across departments.
If this Bill is to succeed in its wider aims, it must also be accompanied by a credible and co-ordinated plan to tackle the illicit market that so often undermines those very goals. This probing amendment simply seeks to understand how the Government intend to develop a strategy to tackle the illicit market, and whether they intend to take an overall and strategic view.