[GLOBALink EuroNews] European Bulletin - EU9937 - 4 October 1999

[Robert Weissman <rob@essential.org>]

EUROPEAN BULLETIN EU9937 – 4 October 1999

Headlines

Europe

BELGIUM: Court abolishes part of tobacco advertising law

BULGARIA: Bulgartabac to expand operations

CROATIA: BAT gains control of national TDZ tobacco company

FINLAND: Pregnant passive smokers may be given extended maternity leave 

GERMANY: Smoking banned in athletes’ accommodation 

NETHERLANDS: Dutch smoker extends damages suit to include state 


SPAIN: Tabacalera to sell 25% of Logista in share sale


International

USA: Philip Morris to stop financing smokers’ advocacy group



Full Text

BELGIUM: Court abolishes part of tobacco advertising law


The Belgian Court d'arbritage has abolished two provisions of the Belgian
tobacco ad ban. Tobacco advertising for world wide events will still be
possible until 31/7/2003 and the provisions on indirect advertising are
also abolished. The court justified its decision concerning world wide
events by stating that there was a risk the sport would leave the country
and that the impact of Formula One events on the local economy was too
important to run this risk. According to the court, a ban on Formula One
sponsorship is ineffective, as the event will take place in another
country which will allow tobacco advertising and which can be seen on
television in the rest of the world.


Luc Joossens, chairman of the Belgian Coalition Against Tobacco made the
following comments:

- The ruling underlines the need for a world wide on tobacco advertising
and the urgent need to support the WHO framework convention - The decision
of the court is based on totally wrong information concerning the economic
impact of the Grand Prix on the Walloon region where the Belgian Grand
Prix takes place. The money from the sales of Grand Prix tickets does not
go to the Walloon region but to a company owned by the wife of Bernie
Ecclestone, the boss of Formula One. - The court is not well informed
about the European directive. The court says that it is unfair that
Belgian law forbids tobacco advertising for world wide events from
1/1/1999, while the rest of the European Union only has to conform from
31/7/2003. The court seems not to know that the directive allows tobacco
sponsorship for world wide events until 31/7/2006. - The court decision is
inconsistent and based on biased information, but unfortunately no appeal
is possible against its decision.

Source: Correspondence from Luk Joossens, Chairman of the Belgian
Coalition Against Tobacco, 1/10/99



BULGARIA: Bulgartabac to expand operations

Bulgartabac Holdings, which is 94 per cent owned by the government of
Bulgaria, is to expand its operations through an increase in exports and
by opening new factories in Europe and Latin America. The company’s policy
is to build factories in the countries in which it is targeting to avoid
high customs fees and other taxes imposed on cigarette imports.
Bulgartabac plans to increase exports to Europe, Arab States, Egypt and
Japan. The company produces 70 cigarette brands and sold 34bn cigarettes
in 1998.

Source: Tobacco Reporter, September 1999



CROATIA: BAT gains control of national TDZ tobacco company

BAT in Croatia is claiming victory in its dispute with the national TDZ
company. BAT representative for Croatia Ann Johnson said that they had got
the formal proofs of their ownership over TDZadar, according to the
verdict. BAT now owns 81% of shares, inviting the small shareholders to
sell their shares for a nominal value.

The new TDZadar director Andrew Podsiad said that they were planning to
modify a few BAT worldwide brands to the Croatian market profile, adding a
new "domestic" brand.

Source: Correspondence from Romano Tripalo, 22/9/99




FINLAND: Pregnant passive smokers may be given extended maternity leave

A working group set up by the Ministry of Social Affairs and Health is
likely to propose that a worker who is exposed to tobacco smoke at work
should be allowed early maternity leave. Tobacco smoke exposure would
affect most workers in hotels and restaurants. Maternity leave could begin
almost immediately after the pregnancy has been confirmed.  However, the
working group has expressed concern about the costs of such a policy which
could amount to approx. FIM 5mn (USD 0.9mn).

Source: Helsingin Sanomat (XFB) via The Gale Group 16/9/99



GERMANY: Smoking banned in athletes’ accommodation

Officials overseeing German’s Neubau summer race in Nuremburg decided to
ban smoking at overnight accommodation for athletes. Co-ordinator Otto
Garnische remarked: "While it seems somewhat strange to think that runners
smoke, the truth is that some do!" In recent years, a larger proportion of
the more than 200 athletes have been non-German.

Source: Tobacco Reporter, September 1999



NETHERLANDS: Dutch smoker extends damages suit to include state


The Dutch man suing the tobacco industry is extending his legal action
against the

Dutch state claiming it is liable for not taking sufficient steps to
inform the public about the effects of long-term tobacco use. Wim ter
Schegget, 55, who suffers from emphysema and is confined to a wheelchair,
is the first smoker in the Netherlands to take tobacco producers to court.


Source: Reuters



SPAIN: Tabacalera to sell 25% of Logista in share sale

Tabacalera SA, Spain's largest cigarette maker, has announced plans to
sell 25 percent of its Logista distribution unit. Tabacalera will offer up
to 12.27 million shares of Logista to individual investors, Tabacalera and
Logista employees, and to fund managers, it said in a note the National
Securities Market Commission. That is less than the minimum 30 percent
stake that Tabacalera had said that it planned to sell. Tabacalera owns
75.6 percent of Logista, and media company Grupo Planeta owns 13.6
percent.

Tabacalera wants to sell part of the unit, which distributes more than 95
percent of the cigarettes sold in Spain, to ensure the company is seen as
an independent distributor. That will make it more likely that other
cigarette manufacturers such as Philip Morris Co., the largest U.S.
cigarette maker, will continue to use Logista as a distributor.

In July Tabacalera said Logista was worth 216 billion pesetas ($1.4
billion, or 1.3 billion euros) and expects to earn profit of 8.4 billion
pesetas in 1999. Tabacalera shares rose 1 percent, or 0.17 euro to 17.78
before the announcement.

Source: Bloomberg News, 30/9/99


International

USA: Philip Morris to stop financing smokers’ advocacy group

Philip Morris has withdrawn future financial support to the National
Smokers Alliance in reaction to an ethics compliant filed against Senator
John McCain. Ms Ellen Merlo, a spokeswoman for Philip Morris said the
filing of the ethics complaint was "undertaken without authorisation,
communication or co-ordination with Philip Morris". Ms Merlo said that
although the company has serious public policy disagreements with Senator
McCain it had no reason to question his ethics.

Source: Tobacco Reporter, September 1999



Amanda Sandford Research Manager ASH 102 Clifton Street LONDON EC2A 4HW
tel: 0171 739 5902 fax: 0171 613 0531