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Second, the prison system can be improved by using the Corrections Victoria Tobacco Levy funds to achieve the aim that they were collected for to reduce prisoners' dependency on cigarettes and tobacco. The Corrections Victoria Tobacco Levy was instituted in August 1993 with the stated aim of funding smoking cessation programs for prisoners. The prison system purchases cigarettes and tobacco at wholesale prices (i e 80% of the Recommended Retail Price). Prior to the institution of the levy, cigarettes and tobacco were on-sold to prisoners without a mark-up.

The levy imposed in 1993 was originally 10% of the RRP. On 14 June 2OO4 the levy was increased to 20% of RRP. Of the more than 4,800 prisoners in Victoria on 30 June 2010, approximately 70-75% of them smoke, and collectively they spend millions of dollars on cigarettes and tobacco each year. For instance, during the 2OO3 2OO4 financial year the 350 prisoners then at Barwon Prison spent $244,366.57 on cigarettes and tobacco at the prison canteen. 1O% of that amount is $24,436.66 (although Corrections Victoria claims that it only raised $796.87). During 2004-2005, after the levy was increased from 10% to 20% of RRP, they spent $212,922.80 on cigarettes and tobacco; 20% of that amount is $42,584.56.

The funds raised over the past 17 years from every Victorian prison are, therefore, considerable and the levy account has never been subjected to an audit by Audit Victoria. Only a fraction of these funds have been expended on smoking cessation programs for prisoners. The prison system would be improved by prisoners being able to regularly access smoking cessation products (e.g. nicotine replacement patches, gum, lozenges) subsidized by the Tobacco Levy funds. Prisoners should be able to purchase such products on their weekly canteen, as they do their cigarettes and tobacco.

"Ideas about How to Improve the Prison System: A 10 Point Plan" Page 2

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