When will Costello be sacked?

Written By: - Date published: 10:06 am, October 1st, 2024 - 35 comments
Categories: Christopher Luxon, corruption, health, nz first, politicans, Politics - Tags:

This really is Banana Republic stuff.

At the same time the Government is saying to the good people of Dunedin they can’t have the hospital they were promised because of cost the Government has allocated $216 million for a tax cut for a multi national corporation peddling health damaging products.

And the bizarre thing is that there is no apparent proof that the products are better for health than normal smokes. And there is no proof that the cost to consumers will be cut. All the multi national corporation may do is keep the savings and make more profit.

And instead of following very clear policy advice from officials Minister Casey Costello has chosen to follow alternative advice which no one, including the Prime Minister has seen.

From Guyon Espiner at Radio New Zealand:

Officials told New Zealand First minister Casey Costello that Philip Morris would be the biggest winner from tax cuts for Heated Tobacco Products (HTPs), which they said were toxic and more harmful than vaping.

Despite a long list of problems Treasury identified with the proposal, Costello claimed she had got her own “independent” advice to the contrary and went ahead with a 50 percent excise tax cut for HTPs, at a cost of up to $216 million.

Associate Health Minister Costello has been criticised by public health experts, who last week said the excise tax cut amounted to an untested, radical experiment.

When the tax cut was revealed by RNZ in July, it was immediately criticised as “weighted in favour of the tobacco industry” by Janet Hoek, a professor of public health.

New documents obtained under the Official Information Act show Treasury officials shared those concerns, among others, which they laid out in detailed briefings to Costello.

The government is a signatory to the World Health Organisation Framework Convention on Tobacco Control, and is obliged to protect policies from “commercial and other vested interests” of the tobacco industry, the briefing states.

“Removing duty from HTPs may be viewed as in the interests of the tobacco industry, noting that the WHO recommendation is that HTPs should be taxed at an equivalent rate to conventional smoked cigarettes.”

The only commercial beneficiary of the tobacco tax cuts is Philip Morris, which is the “sole supplier” of HTPs in New Zealand.

Costello claimed that Heated Tobacco Products were good for health. Official advice is that they are more damaging to the health of smokers than vaping and that cutting taxes may produce worse health outcomes.

Costello based her claim on alternative advice that she has received.

From Espiner’s article:

Both health and Treasury officials have stressed the lack of evidence that HTPs even work as a smoking cessation tool.

The documents said because “HTP use is associated with dual cigarette/HTP use, and is not associated with smoking cessation” there was a risk smokers would continue to use both cigarettes and HTPs.

“Some studies suggest that former smokers that use HTPs are more likely to relapse. Other studies suggest HTP users are less likely to transition away from smoking conventional cigarettes than those users exclusively smoking cigarettes.”

But the documents showed Costello went to alternative sources to back up her claim that HTPs help people quit.

“I, the Associate Minister of Health, have received independent advice on the efficacy of HTPs as a smoking cessation tool,” the documents recorded Costello as saying.

RNZ asked where the “independent advice” came from, but Costello would not say.

I wonder where the advice came from?

Was it from David Broome, who was chief of staff for NZ First between 2014 and 2017, before becoming external relations manager at Philip Morris.

Or maybe it was from Apirana Dawson who was director of operations and research in the Winston’s office from 2013 to 2017 and led the election campaigns and who is now Philip Morris’ director of external affairs.

Costello has tried this sort of stunt before. She refused to disclose the source of the documents that she gave to officials at the beginning of the term to develop policy. The documents made all sorts of outlandish claim such as nicotine is as harmful as caffeine, and that Labour’s smokefree generation policy was nanny state nonsense. They argued for tobacco tax cuts.

She was reprimanded by the Ombudsman for her failure to disclose the source of the documents.

This morning Christopher Luxon was interviewed about the matter.

He claimed that he had not seen the advice.

My jaw dropped when I heard this.

What sort of banana republic are we living in when a report that results in $216 million of taxpayers money being applied to a tax cut to Phillip Morris is not read by the Prime Minister and is not made available to the public?

If it had happened during Helen Clark’s time she would not only have read the report herself she would have sent it to officials to be critiqued and she probably would have sacked the Minister for being so stupid as to try this sort of stunt.

Luxon then continued to trot out variations of “the Government is committed to its Smoke Free 2025 goals” and “we are up to trying all sorts of alternatives”.

He was asked if he could point to any evidence to show that HTPs were less harmful. He said:

We have an alternative product here which is not as harmful as smoking.

Way to beg the question. When officials are telling you that these products may worsen health outcomes you owe it to subject the advice to rigorous review.

There will no doubt be a concerted effort to have the document released. There is no way that it should not be.

And if it turns out that Costello has been taking advice directly or indirectly from Phillip Morris then Luxon has to sack her. That is as long as conventional understandings of the role of Ministers are still relevant.

35 comments on “When will Costello be sacked? ”

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  1. SPC 1
    1 October 2024 at 10:40 am

    PM, Beehive brand tobacco.

    1.The MP who replaced William English in Clutha former employee, Corporate Affairs.

    2.And the other one, still around, former employee, Corporate Affairs.

    https://www.stuff.co.nz/dominion-post/news/10074746/Hutt-South-candidate-downplays-his-tobacco-past

    3.Friend of Whaleoil, Party President and son.

    4.ACT/NZF hybrid MP developer.

    5.Funding source to political parties, not so secret PAC's and various supporters of vaping, tobacco and vaping outlets.

    Role model to other industries as to methods and practice – many personally known to MP's able to adapt into variant hybrid forms at will/when opportune.

    6.When? If? Governments corrupted one MP/Minister at a time.

  2. Tiger Mountain 2
    1 October 2024 at 11:03 am

    Guyon Espiner and RNZ have done good work here. It is not acceptable to fund the Tobacco industry with taxpayer money, or tell pork pies about harmful products–Mr Espiner is very circumspect with his language, but maintains that the facts speak for themselves. It is summarised well in a Detail podcast…
    https://www.rnz.co.nz/news/national/529045/the-lobbyists-the-minister-and-the-mystery-document

    Mrs Costello seems typical of egotistical ex detectives turned MP, like…Mike Sabin…Ross Meurant etc. and it is hopefully a matter of when not if she is sacked.

  3. Ngungukai 3
    1 October 2024 at 11:04 am

    One of Winston’s smoking buddies.

    • Tiger Mountain 3.1
      1 October 2024 at 11:16 am

      “Winfield Peters”, it is interesting the number of Tobacco industry people associated with the Natzos and NZ First. Another jumped up little shit that replaced Bill English and then scarpered after a recording scandal–Todd Barclay–also worked for Phillip Morris.

  4. Macro 4
    1 October 2024 at 11:25 am

    So Look! What I am saying to you is this! We are a govt of targets and what we are targeting is giving as much money to our corporate mates as possible. They are the ones ponying up to pay our election costs and they deserve to get a helping hand. Those people who smoke and get an early grave – well we are not worried about them. We are focused and working extremely hard at lining as many of our mates pockets as we can.

  5. Ngungukai 5
    1 October 2024 at 11:28 am

    Tobacco lobbyists are well entrenched in different parties in Wellington it is a cheap way of sourcing information, ie ex Chinese spy’s being MP’s in the National Party.

  6. tc 6
    1 October 2024 at 11:43 am

    They will be mighty pissed off its been outed so soon, expect significant gaming of OIA process to prevent this in future or even sneaky changes to be 'pretty legal' to stem information on their dodgy dealings.

  7. PsyclingLeft.Always 7
    1 October 2024 at 12:16 pm

    Chris Luxon…has now frickin nailed his colours to it

    Luxon said ministers received a range of advice and while he hadn't see this specific piece he had confidence in Costello.

    "I have every confidence in the minister."

    https://www.rnz.co.nz/news/political/529508/christopher-luxon-hasn-t-seen-advice-on-heated-tobacco-tax-cut

    Be interesting to see how that pans out. As I am sure someone will be prepared to whistleblow….

    • SPC 7.1
      1 October 2024 at 12:31 pm

      A government that could not fund hospitals in the SI and keep their sponsors happy.

      A government that could not fund Health New Zealand and access to primary health care and restore/maintain the privileged tax position of landlords.

      • PsyclingLeft.Always 7.1.1
        1 October 2024 at 12:44 pm

        I do not, never have, think they are incompetent or stupid. You would think they have an almost purblind level of arrogance/self belief. To whit..Shane Jones

        "We had an election about it, the three parties that comprise the government went and asked the permission of New Zealand and we were given that permission," he said

        https://www.rnz.co.nz/news/political/529437/climate-protesters-confront-resources-minister-shane-jones

        I take heart from the level of disapproval from NZ lately. I am sure this will gather momentum….

        • SPC 7.1.1.1
          1 October 2024 at 1:07 pm

          There are two drives to the government.

          Social investment with investment (for profit) partners and private funding of school and hospital building (a combination that includes disabling Kainga Ora capacity to deliver 5000 homes a year – as they reached by 2023).

          A combo of National and ACT policy.

          Foreign investment in coastal land/river and high country land (so they can sell for CG) and allowing mass foreign investment in rental (the outflow of money would ruin the economy) as home ownership goes down from 60% now to 50% by 2050 (1900 level).

          Again a combo of National and ACT policy.

          The two paths to make a two tier society permanent. The wealthy and the well to do divided against the precariat.

          They will do this by insisting that a first world nation here (where state delivery is funded by tax), is not possible. When it is, but only by obligations (common worldwide) such as CCT and estate/inheritance taxation on their class.

          The enabling of this by Winston Peters will be his legacy.

          • PsyclingLeft.Always 7.1.1.1.1
            1 October 2024 at 1:27 pm

            Yes I would say driven is a good descriptor for them. And one of them, to "make a two tier society permanent".

            We, (who look) know the money is there and should be available for Hospitals, Health, Housing, Climate, Sustainability, et al. But..priorities aye….

            Pennington says a look at Treasury investments from earlier this year, when a chart released on investment planning revealed a figure of about $90b, $70b of that was on roads. Only $2b was spent on health.

            https://www.rnz.co.nz/news/national/529486/dunedin-hospital-s-low-place-in-infrastructure-must-haves-list

            Instead its diverted to "needed" roading, wild goose gas chasing, and other distractions.

            And Winston. And his Legacy. Who has ever been able to read him? Maybe he might..do something for the Greater Good?

            Or, just for Winston.

  8. georgecom 8
    1 October 2024 at 12:53 pm

    Did her "independent advice" come from Rothmans or Pallmall?

  9. Mac1 9
    1 October 2024 at 12:57 pm

    Right on the money, mickysavage. I wrote the following this morning before reading your post this afternoon.

    "Where there's smoke, there's liars".

    To be a liar can be done by three ways. 'Commission' where the liar actually tells a falsehood. 'There is nothing wrong with vaping.'

    'Omission' where the liar withholds information. 'I've read a report that says different but I won't tell you what it is or show it to you.'

    It seems there is a third now in vogue- 'paltering' involves the use of truthful statements to convey a mistaken impression. 'Our objective is to reduce smoking. Reports I have read indicate little or less harm with vaping.'

    Where does Luxon's statement fit when he says that he has not seen any reports that Minister Costello has read?

    This seems to be a further trick. 'Plausible deniability'. One problem with this, apart from whether he is actually telling the truth, is that by distancing himself from the issue he is giving permission for dubious activity to continue. It's not important enough for him to look into, so business as usual…..

    Costello should reveal her sources.

    Luxon, in his role as Prime Minister, should be certain of the truth where claims of ministers at fault are being made.

    Further to all this, I see Costello is using the old John Key trick- ‘I can find you opinions which say differently’ (btw no direct quotes here in this comment
    but my paraphrasing).

    • Georgecom 9.1
      1 October 2024 at 1:44 pm

      Indeed, Luxon hasnt seen anything. But he hasnt bothered to go looking either. Easy not to see anything if you close your eyes.

      • Mac1 9.1.1
        1 October 2024 at 2:17 pm

        The Coalition of the Three Monkeys. Luxon sees no evil, Winston is colour sensitive , and Seymour doesn’t.

    • Belladonna 9.2
      2 October 2024 at 9:30 am

      Politically, I don't think that Luxon will be too worried about the media heat being applied to Costello.

      The public is well aware that she is a NZF minister in the coalition government (therefore a problem for Peters, not for Luxon). Just as Ardern had little ability to rein-in Shane Jones when he was a coalition minister.

      And, he won't be too worried about all of the public attention going on what is a fairly minor issue (heated tobacco products). There are very major changes, which affect a lot more people, which he'd prefer to go under the radar (fast track legislation, re-write of the RMA, for example)

      Costello is only at risk if documentary evidence emerges of a money-for-votes scandal. And I doubt that they're politically naive enough to have put anything in writing.

      • SPC 9.2.1
        2 October 2024 at 9:41 am

        Maybe the public might wonder about the $216m cost and what has happened to the promised funding for Dunedin hospital.

      • Mac1 9.2.2
        2 October 2024 at 3:18 pm

        The final 10 paragraphs of the original post above apply directly to the question of the Prime Minister's performance regarding his role.

        The heat is on him, as well as Costello. The heat is even further scorching his eyebrows (nothing on top to burn) regarding the issues raised in mickysavage's post 'He is wealthy and he is sorted'.

  10. Tony Veitch 10
    1 October 2024 at 12:58 pm

    In answer to your question, Micky, "When will Costello be sacked?"

    Never!

    Winnie won't allow it!

    She'll have to do something even more overtly corrupt for any sacking to happen!

    • Chris 10.1
      1 October 2024 at 1:24 pm

      Or they finally see her as too risky…

    • Louis 10.2
      2 October 2024 at 5:26 pm

      yes Even then Luxon will turn a blind eye to it. He wants to hold onto power at any cost.

    • Christopher Randal 10.3
      2 October 2024 at 6:16 pm

      Agreed. Although, on second thoughts, when Winston hands over to Seymour he could use her dismissal to try and alter the coalition agreement or "I bring the Government down".

      I really don't think that Luxon has the cojones to do anything about it

  11. Kat 11
    1 October 2024 at 1:17 pm

    Q. When will Costello be sacked…….

    A. When this abysmal coalition is kicked out of office……..

  12. Mike the Lefty 12
    1 October 2024 at 2:16 pm

    Houston – we have a situation.

    The CoC are looking like a bunch of dicks to everyone outside their most rabid supporter groups.

    Lies, misinformation, diversions, conflict of interests within cabinet.

    But the biggest problem is that Casey Costello is one of the coalition partners, but not National. If she were a National Party minister she would have been out on her end long ago, like Melissa Lee, but because she isn't she can't be touched without Winston threatening to bring down the government and go for an early election.

    And Luxon will be absolutely desperate to avoid this because he knows, despite what the polls are telling us, that he might just lose.

    My pick is that Costello will be "reassigned" another role in cabinet in a minor cabinet reshuffle, a way to sack a minister without looking like you are sacking a minister and thus avoiding an inter-coalition row.

    Meanwhile we people of NZ are being played for fools by a CoC has cares not a jot about what promises it made before the election and is determined to let ideology triumph over common sense and honesty.

    • Tiger Mountain 12.1
      2 October 2024 at 10:03 am

      Agree MtL.

      They are willing to sacrifice many millions for ideology, as per the Cook Strait ferries and stopping uncompleted Kainga Ora house builds–dwellings not closed in will deteriorate and waste more taxpayer money as the homeless wait.

      The pressure should be kept on Mrs Costello and Baldrick until Winston has to get involved.

  13. thinker 13
    2 October 2024 at 7:44 am

    @MickySavage,

    If I'm right, you're missing the most serious point.

    If Casey relied on advice that the PM didn't see, then either the policy shift never got discussed at Cabinet, or,if it did, then the full component of material information for Cabinets decisionmaking was not supplied.

    I'm not sure if that's correct, but it seems logical. The PM should have visibility of everything relevant to a significant policy change, if only from Cabinet papers.

    So my question is, was the policy change tabled at Cabinet and, if so, was the document that Costello relied on tabled with it?

  14. Mac1 14
    2 October 2024 at 3:45 pm

    If Luxon;s answer is"I have every confidence in the minister" then the next question should be "Confidence to do what?"

    I can be vety confident that rain will fall, earthquakes happen and the sea level will rise.

    I have every confidence that the world will continue to be ruled as Einstein says "by stupidity, fear and greed."

  15. PsyclingLeft.Always 15
    3 October 2024 at 11:42 am

    This really is Banana Republic stuff.

    As..Ol' Casey finally fronts RNZ

    Prime Minister Christopher Luxon has backed her decision making, despite having not seen the independent advice himself.

    RNZ asked Costello whether she was confident the prime minister would not regret his comments, and that the advice was sound and legitimate, to which she responded "yeah absolutely".

    RNZ asked Costello whether she appreciated some might be concerned it had come from the tobacco industry, given Philip Morris was a big winner of the tax cuts to HTPs.

    She reiterated she did not know the independent advice was an issue until this week.

    Oh really !?

    Costello told RNZ on Wednesday her request to delay the regulations was not connected to HTPs.

    "I knew I was introducing legislation, which was part of our coalition agreement, to ban disposable vapes this year.

    "So, my concern was around doing changes before we were doing the total blanket ban of disposable vapes."

    Ah..about that Huge Tax Cut ?

    "I never even announced it – it was there, it was in the Budget … it was something I never made a big thing about, it was just something that existed."

    And, people I actually respect :

    Health Coalition Aotearoa has called for the prime minister to stand Costello down.

    Co-chairperson professor Boyd Swinburn said: "The prime minister cannot have confidence in a health minister implementing so many anti-health measures – he needs to stand down associate minister Costello and reverse the HTP decision immediately".

    They believe Costello has failed to deliver on standards expected of a minister on transparency, integrity and competence.

    The health advisory group said it was the latest in a long series of pro-tobacco industry moves by Costello that were likely to cause more harm at the tax-payer's expense.

    "We have a bizarre situation where the government has put aside $216m from the health Budget for lost tax revenue it would have received from a major tobacco company – Philip Morris – while the products it was intended for are no longer legal."

    HCA member professor Chris Bullen added the plan to reduce smoking rates by making another tobacco product cheaper was a "dangerous and radical experiment from the start and should never have been approved by cabinet".

    "These decisions have real and widespread consequences for the health of New Zealanders – and will take us in the exactly wrong direction on tobacco control," Bullen said.

    Ayesha Verrall : "Casey Costello has made a fool of the prime minister by [sic] having him in the media yesterday defending her plan for a trial of tax breaks on heated tobacco products in order to, as they say, help people quit smoking."

    https://www.rnz.co.nz/news/political/529649/casey-costello-will-release-independent-advice-about-benefits-of-heated-tobacco-products

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