A health professor wants tobacco products taken out of dairies.

The Government's reviewing the consequences of its annual increase in tobacco tax, such as increases in crime and the financial impact on smokers.

Otago University health professor Tony Blakely told Mike Hosking the tobacco tax is working well.

But he says the real solution would be removing smokes from dairies, while liberalising e-cigarettes.

"I don't think we should be using tobacco to prop up the corner dairy industry. What we need to be thinking about is synergy, combinations of policies that will achieve a tobacco free country that everybody benefits from.

"It is time to consider taking the tobacco out of dairies, moving them into limited number of suppliers which also supply e-cigarettes so people can shift over to that if they want to keep getting a nicotine fix."

Tobacco prices will continue to rise by ten percent each year until 2020.

LISTEN TO TONY BLAKELY TALK WITH MIKE HOSKING ABOVE