Wellington, April 29 NZPA - The overnight increase in the price of cigarettes could prompt a surge in dairy robberies, a tobacco company has warned.

A bill enacted under urgency in parliament yesterday on a vote of 118-4 has put in place a 10 percent increase in tobacco excise duty, which was effective at midnight. Two more 10 percent rises will follow in January and at the beginning of 2012.

When the two-year price hike cycle is complete, a packet of 20 cigarettes will cost about $14 and a 30 gram pouch of loose tobacco about $30.

Loose tobacco has been hit with a double whammy, an immediate increase of 14 percent to bring it into line with cigarettes as well as the 10 percent increases.

Imperial Tobacco New Zealand said the price hike could fuel the growth of illicit tobacco trade as well as a rise in tobacco robberies.

Illicit trade was the result of an influx of tobacco products that may not meet government regulations for health warnings and was a market anomaly that could not be regulated, the company said.

It increased the exposure of youth to cheap cigarettes without health warnings and had the effect of lowering the price paid for tobacco, resulting in less revenue for the government.

The company also said the increase in price could see tobacco sellers needing to install more security measures as the cost of the product could result in "temptation to criminals".

Meanwhile, anti-smoking campaigners are hailing the bill as a victory for health.

Associate Health Minister Tariana Turia brought the bill to Parliament and told MPs the debate was going to be about life and death.

"The ghastly reality is that cigarettes kill one in every two long-term smokers," she said.

"In basic terms one in five New Zealanders are regular smokers -- exposure to smoking in the home and tobacco use itself results in a staggering figure of around 5000 deaths a year."

Labour, the Greens, the Maori Party, the Progressive Party and United Future backed the bill while ACT split its vote. One of ACT's MPs, John Boscawen, supported it and the other four opposed it.

One was Sir Roger Douglas, who said any benefits had to be weighed up against individual responsibility.

"The 'I know what's best for you' mentality is getting out of hand...our flight from individual responsibility never ends," he said.

And he challenged the Government, if it believed a price increase was going to curb smoking, to do the job properly.

"Why not put it up by 600 percent -- that would fix it."

National's Tau Henare, who identified himself as "Parliament's only real smoker" supported the bill but said poor people were going to be hardest hit.

Progressive Party leader Jim Anderton also backed the bill but accused the Government of hypocrisy because it had rejected a Law Commission recommendation to increase the excise on alcohol.

"And 24 hours later it's agreed to keep the Maori Party happy and rush a bill through Parliament to increase the price of tobacco," he said.

Quitline, which helps people who want to give up smoking, said it was anticipating many more calls and Action on Smoking and Health (ASH) said it expected more people to kick the habit.

The Salvation Army applauded the move but, like Mr Anderton, said it wished the Government had the courage to act as harshly against alcohol.

The Royal New Zealand College of General Practitioners welcomed the price hike and said it would improve the health of many people.