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French strike over
cigarette prices Source:BBS,2003-10-20 Author:BBS news France's 34,000
tobacconists on Monday staged their first ever national strike in protest
against a sharp rise in cigarette prices. The strike coincided with a 20%
increase in the price of a pack of cigarettes, the second of three planned price
rises. "Three separate price increases will push the cost of smoking up by half
in the space of a year," said BBC News correspondent in Paris, Quentin
Somerville. France has long had some of the cheapest cigarettes in Europe but is
now trying to persuade people to quit the habit. However, critics say the
increases are being used to help bail out France's troubled state finances.
Cross-border buying Nine out of 10 tobacconists were closed for the day, and 60
demonstrations were planned across the country. French tobacconists have a
monopoly on cigarette sales and take a percentage of every packet sold. The
price rises will force tobacconists out of business, and the number of
bankruptcies has already gone up by 57% in a year, according to the
Confederation of Licensed Tobacco Sellers. "The government says loud and clear
that it wants the day to come when there is not a single smoker left in France,"
said Rene Le Pape, president of the confederation. "What I want is to make sure
that our network of 34,000 traders doesn't disappear as well." The government
has offered an aid package worth around 120m euros to help the worst-affected
tobacconists, but the shopkeepers say it is not enough. Health fears The price
rises are designed to encourage people to stop smoking. The number of people
smoking has been declining slowly, but around 42% of the population still smoke.
The French government is particularly worried that smoking remains popular with
pregnant women and young people. "Putting up prices by 25% means reducing
consumption by 10% and in the years ahead preventing 10,000 deaths a year," said
Health Minister Jean-Francois Mattei. After the change, a packet of cigarettes
will cost more than five euros a pack, much more than in many of France's
neighbours. But there is nothing to stop consumers driving to neighbouring
countries to stock up, and tobacconists in border regions say their business is
being ruined by the huge differential in prices. Police are more concerned at
the rise in large-scale smuggling, which is already estimated to account for up
to 30% of cigarette sales in Britain. Should cigarette prices be even higher to
stop people smoking? Or is it just an excuse for the government to boost its
income? Average price, pack of 20 (euros) Norway 7.3 UK 6.7 France 5.0 Germany
3.4 Netherlands 2.9 Italy 2.5 Spain 1.9 US 3.3 Japan 2.2 South Africa 1.3
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