Public Hearings for the Tobacco Products Control Amendment Bill, no 24 of 2006

1. Public Hearings for the Tobacco Products Control Amendment Bill, no 24 of 2006 Presentation to the Portfolio Committee on Health 31 January 2007

2. Who are we? • JT International South Africa (Pty) Ltd is a South African registered company that forms part of the JT Group • Operating in over 40 locations worldwide • Our brands include Camel, Winston, Yves Saint Laurent and Aspen • JTI currently represents around 5% of the legitimate South African cigarette market • We employ 150 people directly • 2006 tax bill amounted to approximately R400 million

3. Our position on tobacco legislation • We support the appropriate regulation of tobacco products since tobacco products carry health risks • We believe regulation should be developed inclusively • The impact of regulation should be proportional to the purpose it seeks to achieve • We believe regulations should be clear and workable • We support all efforts aimed at providing information on: • The risks of smoking • Preventing youth smoking • Combating the illicit trade of tobacco products

4. Our comments on the draft amendments • We support the objectives underlying the Act • We caution against the excessive cost associated with over-regulation • We do however have certain misgivings with the current draft amendments, specifically in relation to the manner in which the Bill is drafted • We have real concerns over disclosure of confidential proprietary information

5. Standards • Confusion due to double reference to standards • The Conference of Parties to the FCTC is currently developing guidelines on testing and measuring of contents and emissions of tobacco products • JTI comments: • Significant change to our standards at this stage is premature • These provisions be merged • Standards should be set in regards to internationally recognised scientific standards such as (ISO) • Should be done in consultation with industry

6. Ingredients vs. Composition • The definition of composition used together with ingredient could lead to confusion and inconsistencies • An appropriate definition of ingredient would make the definition of composition redundant

7. Disclosure of Information • The draft amendments contemplates disclosure of various information to both the Minister and the public • Product information and emissions • Research • Marketing expenditure • Product composition and ingredients • This will includes trade secret information, and other confidential proprietary information, which is protected by national and international laws

8. Disclosure of information • The information that tobacco manufacturers are required to disclose to the Minister under clauses 3A(2) and 6(1)(f) should be limited to the ingredients and emissions of the tobacco product, including toxicological data available to the manufacturer regarding the use of ingredients in the tobacco product • Confidential proprietary information and trade secrets should not be disclosed to the public

9. Disclosure of information • Where confidential proprietary information is disclosed to the Minister the Bill should contain appropriate confidentiality protection • Confidentiality must be maintained unless the company which submitted the information consents to disclosure or a court orders that the information is not confidential

10. Thank you