about 1 hour ago

Auditor-General rejects heated tobacco inquiry as out of scope

about 1 hour ago
Costello and Verrall

Photo: RNZ

The Auditor-General has rejected Labour Health spokesperson Ayesha Verrall's request to investigate the government's decision to halve excise tax on heated tobacco products.

In letter responding to the request, Deputy Auditor-General Andrew McConnell said the Office (OAG) could hold public organisations to account for their performance and use of public money, but was unable to express views on the merits of government policy decisions.

"Our work can include examining whether a decision-maker has followed an appropriate or agreed process in making a particular decision. It is not our role to express a view about the merits of a particular decision or the policy sitting behind that decision," McConnell wrote.

"The decision by the Government to reduce the amount of excise tax on a particular product is a policy choice for the Government to make, and it is not within our mandate to question or examine it."

He said allegations of corruption or criminal behaviour might better be considered by the Serious Fraud Office, and the Commerce Commission may be able to look at whether the policy "has inappropriately affected the market for these products or advantaged a particular participant in that market".

Finally, he said questions about whether the decision was in breach of the World Health Organisation's Framework Convention on Tobacco Control - which requires New Zealand to protect tobacco control policies from the interests of the tobacco industry and complete transparency in any dealings - was a legal question the Office was unable to answer.

RNZ is seeking comment from Verrall and Associate Health Minister Casey Costello.

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