Motueka’s (Very) Grey Market in Tobacco

This story of a Motueka tobacco farmer (hit tip: hefevice) makes me want to take up smoking again so I can buy this guy’s wares. Despite being raided and dragged through the courts, Laurie Jury is maintaining there is nothing illegal about what he’s doing: selling dried, unprocessed tobacco leaf, he says, is not the same thing as producing tobacco.

To him, his continued high-profile involvement in tobacco growing, as probably the last self-acknowledged commercial grower in the country, is nothing more than a small farmer growing a small crop of a plant he knows well and sees an opening in the market for.

The small fact that his determination to stick with tobacco has seen him fall foul of the authorities twice now in five years, the second time involving a raid by armed police on his Pangatotara home last week, only hardens his resolve.

The Customs officers who arrived at his place in the wake of the Armed Offenders Squad came with a search warrant that suggested Mr Jury was a suspect in a range of offences, including helping defraud Customs of revenue.

They took all the leaf he had stored in his shed – he won’t say how much, but one report said it was about two tonnes – and a bunch of other stuff, including $4000 in cash, but he is confident they didn’t take anything that is going to land him a conviction.

The last time they tried, as he likes to point out, their case all but collapsed and they had to return the tobacco they had seized.

His argument is that there is no law against growing tobacco and, as far as he has always understood it, nothing in the law to stop him from selling the raw, dried leaf.

So that is what he does, as he freely admits. Buyers, he says, range from passers-by in camper vans who have seen his roadside crop and want some leaves as a “souvenir”, to customers in the North Island.

To be honest, I don’t like his chances of surviving in the long term. The law may not currently prohibit his business, but law is always open to interpretation or change. Public and elite opinion is swinging violently against tobacco, and courts are responsive to public opinion.

The most disturbing part of the story is the way recent raids were conducted:

The memory of [the prior court case] also meant he wasn’t exactly floored by the events of Tuesday last week, which started with being woken before 6am by the sound of his partner, Michelle’s, dog, Diesel, barking ferociously at the end of their driveway.

He grabbed a spotlight to investigate, shining it on to the road frontage, where the dog was “nutting off”, charging up and down the fenceline.

Mr Jury could see nothing, but seconds later, his phone rang, the voice on the other end advising that the police – armed police – were outside his property to help Customs execute a search warrant, ordering him to turn off the spotlight, get dressed and go outside with his hands up.

As he describes what happened over the next few minutes, it is clear the police weren’t mucking around. Armed Offenders Squad officers had stationed themselves along the road, on his property and on the stopbank across the highway. He says he counted at least 10 blue laser sights on rifles being pointed in his direction.

He was shouted at, ordered down to the road frontage to be greeted by snarling police dogs, handcuffed and loaded into a car.

That’s pretty standard practice in the States, but armed cops are the exception rather than the rule here in New Zealand. Armed raids makes the image of a war on tobacco much more vivid.

How to Start a Movement

Fun video from TED with important implications for libertarians:

Analytical Anarchism

I’ve been remiss in not plugging this excellent collection of writing on the positive analysis of anarchism created by Michael Wiebe. There’s a list of published papers and books, and some working papers (including one by Eric and I).

Here’s how Michael introduces the site:

The purpose of Analytical Anarchism is to create an open forum for the academic community to promote and discuss research in analytical anarchism.

What is analytical anarchism? As the subtitle says, it is the positive political economy of anarchism, or simply, anarchism from the economic point of view. Anarchism here simply means the absence of government. Peter Boettke divides anarchist thought into three categories:

1. Utopian — following in the tradition of William Godwin’s An Enquiry Concerning Political Justice (1793).
2. Revolutionary — following in the tradition of Mikhail Bakunin and the First International, 1864-76.
3. Analytical — in the tradition of Murray Rothbard’s For a New Liberty (1973) and David Friedman’s The Machinery of Freedom (1973).

The analytical anarchism research program has developed out of this last tradition, and is currently being pursued by economists such as Pete LeesonEd Stringham, and Chris Coyne.

Why anarchy? Research in anarchism has a fundamental theoretical importance for understanding the mystery of cooperation among strangers, which forms the basis of modern social order. Understanding anarchy also has a critical practical importance for transition economies, Third World development, and post-war reconstruction. Economic analysis of these problems cannot assume a functioning state.

For an introduction to the subject, see Boettke’s “Anarchism as a Progressive Research Program in Political Economy.”

Scholars and students working in this field are invited to submit working papers and posts discussing the literature, general issues, potential research topics, etc.

Tobacco Taxes

So, the New Zealand government has voted 118-4 to increase the sin tax on tobacco.  The funny thing is, the move was led by the Maori party, whose supporters contain a disproportionate number of smokers who probably don’t want a tax increase, and supported by the centre-right National party, who campaigned on an anti-nanny state platform.  I’m with Eric on this:

You know who I really feel bad for? The folks who voted National thinking they’d get less nanny-state as consequence. And, worse, the folks who campaigned for them on that basis. Think harder about it next time, guys.

While I know most politicians don’t feel the need to justify the passing of laws, surely there must be some among those 118 who think that there should be some sort of reason.

Do we need to increase tobacco taxes to pay for the costs of smoking on the health system? Nope: smokers pay more than their share. On that basis, we’d decrease the excise tax considerably.

Does ignorance among smokers as to the true health costs of smoking undermine the welfare-maximising tendency of free choice, meaning we need to force people to do what they’d do given full information. Nope. Even if you think ignorance justifies coercion, the fact is that people radically overestimate the health risks of smoking. If we wanted to encourage people to make the decisions they’d make if they were fully informed, we’d subsidize tobacco.

The real reason for increasing the excise tax on tobacco is a combination of arrogant paternalism and bigotry. Turia and Key think they know what’s best for you better than you do yourself and see smokers as disgusting deviants who must be punished. As Joseph Gusfield (writing about alcohol) says:

As his own claim to social respect and honor are diminished, the sober, abstaining citizen seeks for public acts through which he may reaffirm the dominance and prestige of his way of life. Converting the sinner to virtue is one way; law is another.

Anyone in favour of the increase care to offer another explanation?

Thesis, APEE, and the Absence of Blogging

So I haven’t been blogging much, obviously.

I’ve now submitted my thesis (which you can read here, if you like) and I’m heading to Vegas tomorrow for the APEE conference, where I’ll be presenting my Templeton essay. If any readers are going to be there, I’m always keen for a beer or two.

I’ll have a stack of tests to grade when I get back, but after that I’ll have an abundance of free time until I find full-time work. Expect the blogginess to resume before too long.

Constitutional Dilemmas: The Push for Proportional Representation

Luke Malpass of the Centre for Independent Studies gives an interesting talk (based on a forthcoming paper) on proportional representation and the possibility of bicameralism in New Zealand. In my view, bicameralism is the best constitutional reform for New Zealand which has much hope of succeeding. I’m not sure why it isn’t more of a political issue.

The ‘cult’ political following that Proportional Representation electoral systems achieve in Westminster countries means that it is a matter of when not if pressure for comprehensive PR is going to arrive in Australia. New Zealand has it, Scotland has it, and British Prime Minister Gordon Brown is holding a referendum on it in England, the very home of the Westminster system of government.

Curiously perhaps, New Zealand is holding a binding referendum on the future of its Mixed Member Proportional (MMP) electoral system which was modelled on the German electoral system, and early polling indicates its future is far from assured, due to concerns about its efficacy, and widespread lack of public understanding.

CIS NZ Policy Analyst Luke Malpass discusses his research in this area, looking at MMP, how it has operated and what alternatives exist. With an introduction by CIS Research Fellow Dr Oliver Hartwich.

This Week in Moral Panic

A few stories from New Zealand over the past few days:

Cheap smokes!

“I’m bloody horrified, but not surprised at their tactics,” [Maori Party MP Hone Harawira] said. “There’s now overwhelming support from New Zealanders to get rid of tobacco in this country and companies are doing their best to hook as many people as possible now, so they’re lowering prices and upping nicotine and marketing into places like Aranui and Otara.”

“What they are doing is maximising their profit before their demise and they don’t care that they’re killing New Zealanders to achieve it,” he said.

Gangs!

Local government leaders are seeking a law change to allow other councils to follow Whanganui’s lead and ban gang patches.

Whanganui was given the right to pass a bylaw last year banning all gang insignia except tattoos from public places, but other councils wanting to do the same must get their own enabling law through Parliament.

Party pills!

Police and customs officials are worried a party drug linked to the deaths of two teenagers in Britain is now circulating in New Zealand.

It is feared the banned drug mephedrone, also known as M-cat, meow and plant food, is growing in popularity as a substitute for ecstasy. (…)

Although no cases have turned up at hospital emergency departments as yet, potential side effects of the drug range from vomitting, nausea and nose bleeds, right through to hallucinations, fits, paranoia, anxiety and depression.

The long-term side effects are still not known.

Child sexualization!

“It is time to confront the issue of ‘corporate pedophilia’ and the ‘raunch culture’ which is harming the self-esteem, body image and academic performance of our young people,” says Mr McCoskrie.

Gambling!

The findings were clear – every additional pokie machine in a community results in .8 new problem gamblers. Further, there is no evidence that this plateaus.

Graeme Ramsey, Problem Gambling Foundation CEO, says research such as this should inform gambling policy.

Stand by for regulation.

Behind the Moral Curtain

I’m slow in posting this video of Elise Parham presenting her monograph Behind the Moral Curtain: The Politics of a Charter of Rights. The paper and video are both well worth checking out. Astute viewers may even be able to spot the back of my head in the video.

Elise’s argument is that bills of rights are fundamentally political, rather than legal, documents. This is true in the sense that rights will be interpreted and enforced based on political expediency and prevailing ideologies, as Robert Higgs and others have argued. Elise’s argument is that the writing of a bill of rights is also political. Once a government decides to draft a charter, many competing interests will compete to have their preferences reflected and the end result is unlikely to be a liberal document. Rather, we’ll end up with a whole lot of illiberal, and constitutionally protected, positive rights.

Wiggling it Around in Excrement

Some family-values conservative explains how gay male sex works:

Hat tip: Xaq Fixx.

Libertarian Music Monday: Fuzzbox Edition

Rules and Regulations by We’ve Got a Fuzzbox and We’re Gonna Use It:

There must, indeed, be more to life than rules and regulations to command and obey.

See also their…interesting take on Spirit in the Sky.