Photo: © 2009 AFP/AAP/FREDERIC J. BROWN

Nick Minchin has told ABC TV's Q&A program that smokers don’t clog up the health system but, in fact, save it money.

"They die early. They actually save us money … I tell you, that’s the truth … You’re going to save us money."

Host Tony Jones retorted: "You’re going to have to live with [that quote] forever."

Minchin says last week's 25 per cent increase on cigarettes was a tax grab.

He also encouraged smokers to keep on lighting up.

"I'm not a smoker, I've never smoked. I've tried to prevent my children smoking.

"Smoking is a hideous habit, but I defend the right of smokers in a liberal, free, democratic country to smoke.

"If people choose to die of smoking, I as a Liberal think, well, that's your problem, but go for it."