[Intl-tobacco] European News Bulletin - EU000207 21 February 2000 (fwd)

[Robert Weissman]

Globalink's European News Bulletin:

EUROPEAN BULLETIN EU0007 =96 21 February 2000

Headlines

AZERBAIJAN: Sorex buys stake in cigarette plant

BALTIC STATES: Co-operation re: tobacco taxes

CZECH REPUBLIC: Cigarette vending machines to be banned

ISRAEL: Ministry of Health is finding new ways to lure smokers to quit.
ISRAEL: Proposed legislation against subliminal advertising of cigarettes
UK: Britons risk heart death more than most of EU
UK: Byers to investigate cigarette-smuggling claims




Full Text

AZERBAIJAN: Sorex buys stake in cigarette plant

A UK-based company, Sorex Management, has bought an 85 per cent stake in
Azerbaijan=92s Baky-Tyutyun cigarette factory. Over the coming years, Sorex
will invest US$49.8 million in the plant=92s upgrade. The 1999 instalment
will have been $13.15 million. The company will start production at the
factory by the end of 2000.

Source: Tobacco Reporter, February 2000



BALTIC STATES: Co-operation re: tobacco taxes

Lithuania, Latvia and Estonia are planning to work together on excise
harmonisation. The three Baltic states will have to raise tobacco duty
rates if they are to qualify for membership of the European Union.
Lithuania is planning an increase to LT30 (US$7.5) per 1000 cigarettes
from 1 March 2000. The increase is projected to yield LT8 million to LT10
million in additional budget revenue.

Source: Tobacco Europe February 2000, Tobacco Reporter Feb. 2000



CZECH REPUBLIC: Cigarette vending machines to be banned

Among the measures being considered in a forthcoming tobacco control law
is a ban on cigarette vending machines and a ban on the sale of tobacco
from petrol stations and most shops. Only authorised tobacconists will be
allowed to trade in tobacco products. The new law will also ban tobacco
advertising.

Source: Tobacco Europe, February 2000



ISRAEL: Ministry of Health is finding new ways to lure smokers to quit.

The Health Ministry=92s campaign against tobacco smoking has failed to
reduce the number of smokers in the adult population in the last six
years. Since 1994, the percentage of adults who smoke has remained steady
at around 28 percent. Among younger people (under the age of 18) the
number of smokers is steadily increasing, and children are beginning to
smoke at earlier ages. Faced with these troublesome figures, the Health
Ministry has resolved to change its strategy. In a few weeks, the ministry
will launch a telephone hotline to assist anyone who wishes to quit
smoking. Callers will receive immediate information and counselling
regarding various methods of kicking the habit. The ministry has already
begun training the hotline=92s personnel, which include psychologists and
social workers.

The Health Ministry is determined to combat tobacco smoking, and is
planning to use the same tools that the tobacco companies employ to sell
their products. It has enlisted a number of adolescent celebrities and
role models, including Sandy Bar, Liat Ahiron and Adi Azroni, who will
star beginning this month in anti-smoking commercials. And for those who
can only be lured out of their habit with material prizes, there is a new
raffle in town, called "I Quit and Won". Every former smoker who can
produce certified proof to the effect that he or she has been weaned off
the ugly habit, along with two witnesses, will be allowed to take part in
the raffle.

Source: Ha=92aretz Daily Newspaper, Monday, 2/14/00



ISRAEL: Proposed legislation against subliminal advertising of cigarettes

A new law to ban subliminal advertising of cigarettes and tobacco products
in cinema and videos passed on a first reading in the Knesset last week.
The bill, proposed by Israel MK Avi Yehezkel, would result in two years
imprisonment and a fine for breach of the law.

Source: IsraelWire, Friday, 18/2/00




UK: Britons risk heart death more than most of EU

British men and women are at much higher risk of death from heart disease
than people living in most other European countries, says the British
Heart Foundation in a report.

At the same time, the number of heart bypass operations carried out in
Britain in relation to need is lower than in any other European Union
country. The report reveals that British death rates for adults aged 35 to
74 are three times greater than France=92s and twice as high as Italy=92s.
Among the EU countries, only adults in Finland and Ireland have a worse
record for deaths than Britons.

Britain scores better in the smoking statistics, coming seventh among 15
countries. Here, 28 per cent of the adult population smokes, compared with
37 per cent in Greece and 18 per cent in Portugal, which has the lowest
rates. These are explained by the small percentage of Portuguese women who
smoke, only eight per cent, compared with 28 per cent in Greece, a
tobacco-producing country.

Source: Electronic Telegraph, Monday, 2/14/00



UK: Byers to investigate cigarette-smuggling claims

The Secretary of State for Trade and Industry, Stephen Byers, is to
examine claims that British American Tobacco has been involved in
large-scale cigarette smuggling. The accusations come from documents
unearthed by ASH and investigative journalist, Duncan Campbell, which
claim that smuggling has helped to fund South American drug-running
operations. ASH has written to Mr Byers asking him to investigate the
allegations under legislation included in the Companies Act. A Department
of Trade and Industry spokeswoman said the department was considering the
points which ASH had raised but she said no conclusions had been reached,
and no decision taken on whether there should be an inquiry.

Former Conservative Chancellor Kenneth Clarke, who is now British American
Tobacco=92s deputy chairman, sought to rebut the accusations that British
American Tobacco has been involved in smuggling and indirectly encouraged
money-laundering operations. Mr Clarke acknowledged that cigarettes were
smuggled into markets including Colombia but insisted that the company was
not involved. "We are the victims of smuggling, when our product goes into
the smuggled market. There is no evidence I have ever seen that the
company is a participant in this smuggling. We seek to minimise it and
avoid it," said Mr Clarke.

British American Tobacco chairman Martin Broughton also denied any
wrong-doing on his company=92s part. Asked if he refuted the accusations
that the company was involved in managing cigarette smuggling and
money-laundering, he insisted: "I refute those accusations completely."

Mr Clarke said that although he raised tobacco duties during his time as
Chancellor, he had since come to the view that high duty rates encouraged
smuggling into this country by offering criminals the prospect of big
returns. "Britain is a burgeoning smuggling market because the tax
differential is too high," he added.

Source: ITN, Thursday, 17/2/00

Ed: Extracts from BAT=92s documents plus letters and further examples of
press coverage can be seen at the ASH website at: www.ash.org.uk/smuggling



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