Philip Morris study: smoking is cost effective population control

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Another PR hack out looking for work after this one :)

"Smoking population cost effective – Philip Morris Tuesday, July 17 2001 Filed at: 08:57 AM

The world's biggest cigarette manufacturer Philip Morris has told the Czech government that it is cost effective to have a population that smokes. In an economic analysis presented to Czech officials the company says that early deaths from smoking saved the Czech government about $147m in 1999. Philip Morris issued a statement saying that the report was part of an ongoing debate about the economics of cigarette excise tax policy there and it deeply regretted any impression that the premature death of smokers represents a benefit to society.

Whoops..

-- Anonymous, July 18, 2001

Answers

BBC Tuesday, 17 July, 2001, 11:24 GMT 12:24 UK Fury over 'benefits of smoking' report

Philip Morris makes 80% of Czech cigarettes

Anti-smoking campaigners have reacted with fury to a report delivered to the Czech Government, which argues that there are economic benefits to smoking.

The report, drawn up for tobacco giant Philip Morris, found that the Czech Republic saved about $147m in 1997 as a result of the deaths of smokers who would not live to use healthcare or housing for the elderly.

"Following that logic, the best recommendation to governments would be to kill all people on the day of their retirement," Czech public health campaigner, Eva Kralikova said.

Philip Morris has subsequently denied that it was trying to present a positive side to smoking.

'Very unfortunate'

The company says the report was compiled as a cost-benefit analysis. Calculations included the cost of caring for smokers before they died against the cost of long term provision for the elderly.

"It is very unfortunate that this is one aspect of the study that is being focused on," Philip Morris spokesman Rimi Calvert said.

But anti-smokers have been vitriolic in their condemnation of the company.

John Connolly of the British anti-smoking group Ash dismissed the report, compiled by the consulting firm Arthur D Little International, as repellant.

"Philip Morris is whispering in the ear of the Czech Government saying, 'Look, we can help you deal with those expensive old people, so why don't you go easy on controlling smoking?'", Mr Connolly argued.

The US pressure group Campaign for Tobacco-Free Kids said the report showed the irresponsibility of Philip Morris.

"Would a responsible, reformed tobacco company tell foreign governments that dead smokers are a good thing for their budgets?" the campaigning group's president Matthew Myers asked.

Anti-smoking groups have also questioned the report's validity, as it assumes that if cigarette sales ceased, smokers would not spend their money on other goods.

Defence

Philip Morris employs 178,000 people in more than 150 countries, and is the world's largest cigarette maker with brands such as Marlboro.

It produces 80% of the cigarettes smoked in the Czech Republic.

Tobacco companies have used similar arguments in the past to defend themselves against lawsuits from states demanding reimbursement for treating smoking-related diseases.

However, last month a Los Angeles jury ordered Philip Morris to pay more than $3bn to a smoker suffering from terminal cancer who said the company did not warn him of the dangers of smoking.

The award was the largest individual punitive damage award ever against a cigarette maker.



-- Anonymous, July 18, 2001


For years, the Health Nazis have been charging that smoking costs society umpty-ump gazillions of dollars for alleged smoking-related diseases and state governments have been collecting some large chunks of change in court as damages for those societal costs. Now a tobacco company comes along with a study saying, well, it ain't necessrily so and the anti-smoking bunch jumps on the company for refuting their claims.

-- Anonymous, July 18, 2001

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