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You are here: BAILII >> Databases >> United Kingdom Supreme Court >> Imperial Tobacco Ltd v The Lord Advocate (Scotland) [2012] UKSC 61 (12 December 2012) URL: https://www.bailii.org/uk/cases/UKSC/2012/61.html Cite as: 2013 SCLR 121, [2012] UKSC 61, 2013 SLT 2, 2013 GWD 1-8, [2013] LLR 6, 2013 SC (UKSC) 153 |
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Michaelmas Term
[2012] UKSC 61
On appeal from: [2012] CSIH 0009
JUDGMENT
Imperial
![]()
Tobacco
Limited (Appellant) v The Lord Advocate (Respondent) (Scotland)
before
Lord Hope, Deputy President
Lord Walker
Lady Hale
Lord Kerr
Lord Sumption
JUDGMENT GIVEN ON
12 December 2012
Heard on 12 and 13 November 2012
| Appellant Richard Keen QC Brian J Gill (Instructed by Pinsent Masons LLP) |
Respondent James Mure QC Anna Poole QC (Instructed by Scottish Government Legal Directorate Litigation Division) |
|
| Intervener (The Advocate General for Scotland) Lord Wallace of Tankerness QC Ailsa Carmichael QC Jonathan Swift QC (Instructed by Office of the Advocate General for Scotland) |
LORD HOPE (with whom Lord Walker, Lady Hale, Lord Kerr and Lord Sumption agree)
Tobacco
and Primary Medical Services (Scotland) Act 2010 ("the 2010 Act") are outside the legislative competence of the Scottish Parliament. Section 28(1) of the Scotland Act 1998 ("the 1998 Act") provides that, subject to section 29, the Scottish Parliament may make laws, to be known as Acts of the Scottish Parliament. Section 29(1) provides that an Act of the Scottish Parliament is not law so far as any provision of the Act is outside the legislative competence of the Parliament.
tobacco
products. Chapter 1 of Part 1 of the Act is headed "Display, sale and purchase of
tobacco
products". Sections 1 and 9 are included within that Chapter. Section 1 prohibits the display of
tobacco
products in a place where
tobacco
products are offered for sale. Section 9 prohibits vending machines for the sale of
tobacco
products. The appellants,
Imperial
Tobacco
Ltd, maintain that those sections are outside legislative competence because they relate to matters which are listed in Part II of Schedule 5 to the 1998 Act as reserved matters for the purposes of that Act, and that they should in any event be treated as relating to reserved matters as they make modifications to Scots criminal law as it applies to reserved matters. They further maintain that the sections modify the law on reserved matters, contrary to the prohibition in paragraph 2 of Schedule 4. They also maintained in the Court of Session that the sections are outside competence because they modify article 6 of the Acts of Union so far as they relate to freedom of trade. The bringing into force of the 2010 Act has been deferred until these challenges to the competence of these sections have been finally determined.
Background
The interpretation issue
Sections 1 and 9 of the 2010 Act
tobacco
displays, etc". Subsections (1), (2) and (3) are in these terms:
"(1) A person who in the course of business displays or causes to be displayedtobacco
products or smoking related products in a place where
tobacco
products are offered for sale commits an offence.
(2) A person does not commit an offence under subsection (1) if the display -
(a) is in a specialisttobacconist,
(b) does not include cigarettes or hand-rolledtobacco,
and
(c) complies with any prescribed requirements.
(3) A person does not commit an offence under subsection (1) if –
(a) thetobacco
products or smoking related products are displayed in the course of a business involving the sale of
tobacco
products only to persons who carry on a
tobacco
business (or their employees), and
(b) the display complies with any prescribed requirements."
Subsection (4) enables the Scottish Ministers to provide in regulations that no offence is committed under subsection (1) in relation to a display of
tobacco
products or smoking related products which complies with specified requirements. Subsection (5) provides that a person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 4 on the standard scale. Subsection (6) provides that a website is not a place for the purposes of subsection (1). Subsection (7) provides that "specialist
tobacconist"
has the meaning given by section 6(2) of the
Tobacco
Advertising and Promotion Act 2002.
tobacco
products". It is in these terms:
"(1) A person who has the management or control of premises on which a vending machine is available for use commits an offence.
(2) A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.
(3) In this section 'vending machine' means an automatic machine for the sale oftobacco
products (regardless of whether the machine also sells other products)."
tobacco
or smoking related products in specialist
tobacconists
and other retail premises, and also in relation to the display or prices of
tobacco
products and smoking related products under powers given to them by section 3 of the 2010 Act. They are set out in the Sale of
Tobacco
(Display of
Tobacco
Products and Prices) (Scotland) Regulations 2012. These regulations have not yet been made or laid before the Scottish Parliament.
tobacco
products less visible to potential consumers, and thereby achieve a reduction in sales and thus in smoking: 2012 SC 297, para 133. In the following paragraph he said that the extrinsic material indicated that the purpose of section 9 was to make cigarettes less readily available, particularly (but not only) to children and young people, with a view to reducing smoking. He also said that the legal effect and short term consequences were consistent with those purposes. The Dean of Faculty said that he concurred with these observations.
The rules of the 1998 Act
(a) Section 29(2)(b), which provides that a provision is outside competence if it "relates to reserved matters". That provision must be read together with section 29(3) which provides that, for the purposes of that section, the question whether a provision of an Act of the Scottish Parliament "relates to" a reserved matter is to be determined "by reference to the purpose of the provision, having regard (among other things) to its effect in all the circumstances."
(b) Paragraph 2(1) of Schedule 4, which provides that an Act of the Scottish Parliament cannot modify, or confer power by subordinate legislation to modify, the law on reserved matters. That rule must be read together with paragraph 2(3), which states that sub-paragraph (1) applies to a rule of Scots private law or Scots criminal law only to the extent that the rule in question is special to a reserved matter.
(c) Section C7 in Head C – Trade and Industry in Part II of Schedule 5, which is headed "Consumer protection" and includes
"Regulation of –
(a) the sale and supply of goods and services to consumers".
(d) Section C8 in Head C, which is headed "Product standards, safety and liability" and includes
"Product safety and liability".
(1) that, on a proper construction of section 29(2)(b) and 29(3) read together with section C7(a) of Head C in Schedule 5, sections 1 and 9 of the 2010 Act relate to "the sale and supply of goods to consumers", which is a reserved matter;
(2) that, on a proper construction of those subsections read together with section C8 of Head C, sections 1 and 9 relate to "product safety", which is a reserved matter; and
(3) that, on a proper construction of paragraph 2 of Schedule 4, sections 1 and 9 modify rules of Scots criminal law because they create new offences which can only be committed in the course of the sale and supply of goods to consumers.
Section C7(a)
tobacco
products and as the headnote to Chapter 1 states that it is concerned with the display, sale and purchase of
tobacco
products, sections 1 and 9 must be taken to relate to the matters reserved by the words "the sale and supply of goods to consumers" in section C7(a). They say that these words must simply be given their ordinary and natural meaning. Where the words have a clear meaning, as they have here, it would be wrong to allow that meaning to be overridden by other aids to interpretation such as the heading to section C7. The words used do not give rise to any ambiguity. The reserved matter is the regulation, in any way and for any purpose, of the sale and supply of goods to consumers.
tobacco
and
tobacco
products. But this is because, at the time when the Bill was being debated, an agreement on a European basis was in prospect and it was intended that implementation of that type of agreement would be a devolved matter: HL Debates, 23 July 1998, col 1124. It offers no assistance on the point at issue in this case. Secondly, there follows as a separate item the safety of, and liability for, services supplied to consumers. Thirdly, there is the subject matter of eight areas of consumer protection which are defined by reference to the statutes or regulations by which they are regulated. There is one exception to the entire section. It is the subject matter of section 16 of the Food Safety Act 1990. As the Lord President explained in para 9 of his opinion, this is to be understood as having been inserted simply to make it clear that the power to make regulations under that section was to remain, as it had been before devolution, with the Scottish authorities. It does not cast any significant light on the meaning that is to be given to section C7(a).
Section C8
Tobacco
International Inc [1992] QB 353 it was held that regulations banning oral snuff were within the powers of the Act, as its provisions applied both to defective goods and to goods which were intrinsically dangerous. Taylor LJ said at p 365 that there was no basis for confining the objects of the Act to safety risks or defects other than the inherent nature of
tobacco
and that, in the context of oral snuff, the Act was on any view apt to protect the consumer whether one called its purpose consumer protection or public health.
Paragraph 2 of Schedule 4
Tobacco
for Oral Use (Safety) Regulations 1992 (SI 1992/3134) and the
Tobacco
Products (Manufacture, Presentation and Sale) (Safety) Regulations 2002 (SI 2002/3041). It is not necessary to set out the detailed content of these regulations, except to note that they each contain prohibitions in the field of product safety which is a reserved matter under section C8 of Head C of Schedule 5, and that a contravention of their provisions constitutes an offence.
Drawing these points together
tobacco
products less visible to potential consumers, and thereby achieve a reduction in sales. The purpose of section 9 is to make cigarettes less readily available, particularly to children and young people, with a view to reducing smoking: see para 22, above. Their legal effect and their short term consequences can be taken to be consistent with those purposes. As
tobacco
products will be less visible and less readily available, the result is likely to be a reduction in sales and a consequent reduction in smoking. The extent to which those aims will be realised in practice does not matter, as it is to the purpose of the provisions that section 29(3) directs attention in order to determine whether they are within competence. Can it be said that these provisions relate to the matters reserved by sections C7(a) and C8 or either of them?
tobacco
products, not to regulate how any sales are to be conducted so as to protect the consumer from unfair trade practices. There will be nothing of that kind to regulate as far as the vending machines are concerned. The use of such machines will be prohibited, and there will be no sales from any of them.
tobacco
products are offered for sale, the purpose of section 1 is to discourage transactions in such products by preventing them from being displayed and, by this means, their availability for sale from being advertised. The terms and conditions of any sale that may take place are unaffected, as are any other aspects of the transaction that may need to be regulated to ensure that the consumer is not exposed to a method of trading that is unfair. The area of activity with which the section deals is outside the scope of consumer protection, because it does not seek to regulate in any way any sales that may actually take place. For these reasons I would hold that this ground of challenge is misconceived and that it must be rejected.
tobacco
products or smoking related products that are available for purchase in places where they are offered for sale or are sold by means of vending machines. The Secretary of State is empowered by section 11 of the Consumer Protection Act 1987 to make such provision as he considers appropriate to prohibit the supply of specific
tobacco
products either generally or to a particular class of persons: R v Secretary of State for Health, Ex p United States
Tobacco
International Inc [1992] QB 353, per Taylor LJ at p 365. But sections 1 and 9 do not prohibit the supply of these products either generally or to any particular class. Nor is it their purpose to do so. They are designed to promote public health by reducing their attractiveness and availability, not to prohibit in any way the sale of these products to those who wish and are old enough to purchase them. Promotion of public health in Scotland is a responsibility of the Scottish Parliament under the devolution settlement. Taylor LJ's observation in United States
Tobacco
at p 365 that the 1987 Act is apt to protect the consumer for reasons of public health must not be taken out of context. The words "product safety" in C8 direct attention to matters that are of concern to the single market in the general area of trade and industry. It is not the purpose of sections 1 and 9 to disrupt or unbalance trading in
tobacco
products in that way at all. I would reject this ground of challenge also.
tobacco
products and smoking related products in Scotland in a way that was of concern to the single market, I would hold that that purpose is simply a consequence of the purpose to promote public health which is what these provisions are really about. It is a means to an end. It is not, as Lord Dunedin put it in Kaye v Burrows [1931] AC 454, 485, a purpose and end in itself.
tobacco products or smoking materials. If this purpose is realised, that will be their effect. This is plain in the case of the vending machines, because the effect of section 9 is that cigarettes will no longer be available to be sold by this means. The criminal law relating to any sales that may be made in a place where these products are available for sale will not be affected by section 1. It does not create any new offence in regard to any such sales, and the existing offences are not modified. It is not a provision of the kind referred to in section 11 of the Consumer Protection Act 1987, as it is not its purpose to secure that the products sold are safe, that products that are unsafe are not made available for sale or that appropriate information is provided and inappropriate information is not. I can see no connection between its purpose and effect and the law on reserved matters. There is no basis for holding that sections 1 and 9 are outside competence on this ground.
Conclusion