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Release Date: Wednesday 9 April, 2003

SMOKING COSTS AUSTRALIA MORE THAN ALCOHOL AND DRUGS COMBINED

Smoking costs Australia over $21 billion in a year, and these costs are being borne by government, business and individuals, according to an Australian health economist. Helen Lapsley from the University of New South Wales and co-author together with David Collins of the recent report Counting the costs; estimates of the social costs of drug abuse in Australia in 1998-9, presented figures on the costs of smoking in Australia at the 2nd Australian Tobacco Control Conference in Melbourne today. In the financial year 1998/99 smoking resulted in the deaths of over 19,000 Australians and accounted for almost one million hospital bed days. Ms Lapsley says the social costs of tobacco use accounts for around 60% of the costs of all drug abuse in Australia. "In 1998/9, the total cost of tobacco use in Australia was over $21 billion." "This is almost three times than the cost of illicit drug abuse, at around $6 billion, and significantly higher than the costs of alcohol abuse which is about $7.5 billion. "This does not include costs that can't be currently quantified, such as the cost of pain and suffering, some health effects of passive smoking, and reduced productivity of smokers through absenteeism." Lapsley and Collins say that almost half of the social costs of tobacco use can be avoided. Their calculations also measure the impact of tobacco taxes on government coffers. "Clearly, smoking taxes also contribute to government revenue, but revenue gain is not the same as social benefit." "In high tobacco tax countries, revenue from tobacco tax can exceed the tobacco-attributable public expenditures, but this does not indicate that there are net social benefits from smoking." "The important question we need to ask is not 'do smokers pay their way?' but 'does the tobacco industry pay its way?" Counting the costs; estimates of the social costs of drug abuse in Australia in 1998-9 by David J Collins and Helen M Lapsley can be found at www.health.gov.au/pubhlth/publicat/document/mono49.pdf

For more information please contact Zoe Furman on (03) 9635 5517 or email zoe.furman@cancervic.org.au

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