Smoking in New South Wales Pubs and Clubs

1
Smoking in New South WalesPubs and Clubs

• Nick Social Walford
• Michael Healthy Rudland
• Steven Quit Hargreaves
• Anthony Smokin Benscher

2
METHODOLOGY
BENEFITS
COSTS

• Foregone Treatment Costs
• Hospital
• Medical
• Nursing home
• Pharmaceutical

• Increased Utility from Quality of Life
• Employment and patronage
• of NSW PHC
• Fewer passive smoking-
• related deaths

Loss of revenue and profits to NSW PHC

• Foregone Production Costs
• Paid Workforce
• Reduction in workforce
• Absenteeism
• On-the-job productivity
• Household
• Sickness
• Premature death

Costs of proposed ban
Benefits of proposed ban
Loss of consumer surplus to smokers who frequent
NSW PHC

• Reduced Fire Costs
• Property damage
• Fire services

Calculation of Benefit-Cost Ratio
Reduced Legal Costs due to Fewer ETS-related
claims
Recommendation regarding proposed smoking ban in
all NSW PHC
3
Social Health Costs ofPassive Smoking

• Medical, Hospital, Nursing Home, Pharmaceutical
• Dont double count private provision out of
  pocket expenses, private insurance, Medicare
  rebates
• Most direct damage from passive smoking is due to
  co-habitation with a smoker

4
Health Costs of Passive Smoking
Social Health Costs of Passive Smoking in
Australia
Hospital Medical Nursing Homes Pharmaceuticals TOTAL
2.5 million 10.5 million 1.9 million 9.8 million 24.7 million
Social Health Costs of Passive Smoking in NSW
Pubs and Clubs
Year One Year Two Year Three Year Four Year Five Year Six
0 575,000 1.15 million 1.725 million 2.3 million 0
5
How much would you pay to have a smoke-free pub?
6
Non-Smokers

• Smoke-free pub or club worth 2.05 / visit
• 208m in a year
• Bar Staff shifts many times longer so value many
  times patrons
• 34m in a year

7
Smokers
8
Smokers

• Smoking in NSW pubs and clubs worth 5 / visit
• 239.15m in a year

9
METHODOLOGY
BENEFITS
COSTS

• Foregone Treatment Costs
• Hospital
• Medical
• Nursing home
• Pharmaceutical

• Increased Utility from Quality of Life
• Employment and patronage
• of NSW PHC
• Fewer passive smoking-
• related deaths

Loss of revenue and profits to NSW PHC

• Foregone Production Costs
• Paid Workforce
• Reduction in workforce
• Absenteeism
• On-the-job productivity
• Household
• Sickness
• Premature death

2.392b
2.713b
Costs of proposed ban
Benefits of proposed ban
Loss of consumer surplus to smokers who frequent
NSW PHC
1.134
NPV 377m

• Reduced Fire Costs
• Property damage
• Fire services

Calculation of Benefit-Cost Ratio
Reduced Legal Costs due to Fewer ETS-related
claims
YO!!
Recommendation regarding proposed smoking ban in
all NSW PHC