Ofsmoke: Anna Gilmore really is an idiot

Researchers from the University of Bath say the Government could generate an extra £500m in tobacco tax revenue by setting a maximum price at which companies can sell cigarettes and by transferring any “excess” profit to the Treasury.

Eh?

They say cigarette manufacturers make “roughly double” the profits of most other major companies.

I\’m not quite sure what that actually means. Double as a percentage of turnover? Capital employed? However:

“A handful of companies dominate the market and cream off massive profits,” Dr Branston, deputy director of the university’s centre for governance & regulation, said.

“With such a deadly product, competition isn’t attractive,

That\’s the reason they\’re so profitable you idiot sodding tosspot! You\’ve banned advertising, thus largely banned competition and new entrants into the market. And it\’s hardly one of the world\’s great surprises that profits are high in a non-competitive industry.

One bit that would hugely intrest me though. Fags are made by multi-nationals. How are they going to identify UK costs/profits? As Google et al show, that ain\’t all that eaasy, is it?

6 thoughts on “Ofsmoke: Anna Gilmore really is an idiot”

  1. So what do the progressive new puritan bansturbaters want? No tobacco or maximum tax from tobacco? They can’t have both.

    Or are they going to stay fixated on tobacco as e-cigs come from behind to surprise everyone and changing the market like iTunes & Spotify did for HMV et al.

  2. If there’s a maximum price, surely there wouldn’t be any ‘excess’ profit? Why would a tobacco company exceed that maximum if it saw none of the revenue?

  3. Dr Prof Ian Anna Controlmore

    What is it about these Gilmores? There’s another one pops up every five minutes telling the government to ban/tax/control drinking

  4. Pingback: A Link to the Past 12/2/2013 « In Defence of Liberty

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