Cigarette Makers Lose Challenge

General Nicola Roxon has urged tobacco companies to "accept the decision of the umpire" after the High Court rejected a challenge to the Federal Government's world-first plain packaging legislation. From December 1, cigarettes will be sold in drab, olive green packaging with graphic health warnings after the High Court ruled the legislation did not infringe on the property rights of tobacco companies. It means tobacco companies will be required to begin producing plain packaging from October 1, which Ms Roxon said would give businesses an adequate phase-in period before the laws kick in. Ms Roxon said it was a proud day for the government, adding the court's decision to award costs to the Commonwealth was "icing on the cake". "Tobacco companies no longer have any excuses not to get on with implementing this measure," Ms Roxon said. British American Tobacco Australasia, one of the companies behind the High Court action, issued a statement indicating it was "extremely disappointed" by the decision. It said while it respected the full bench's decision, it maintained it was a "bad piece of law". "We still believe the government had no right to remove a legal company's intellectual property, but BATA will comply with this and every other law," the statement read. While there are no further avenues for appeal in the Australian legal system, the plain packaging law is the subject of a formal complaint to the World Trade Organization from tobacco-producing countries Ukraine, Dominican Republic and Honduras. Tobacco company Phillip Morris is also challenging the plan on the grounds it allegedly breaches Australia's bilateral investment treaty with Hong Kong Ms Roxon said she was confident the legislation would survive those and any international challenges.