[Intl-tobacco] Big Tobacco Gives Generousy in Australia (fwd)

[Robert Weissman]

March 1, 2000
Sydney Morning Herald

 Parties push tobacco firms for funds 

 By MARK METHERELL in Canberra 

 Australia's political parties yesterday confirmed they actively
 sought donations from the tobacco industry, which is under
 renewed scrutiny over the tax breaks it receives for research and
 development.

 Latest available Australian Electoral Commission figures show the
 two big cigarette corporations gave a total of $245,000 in the
 1998-99 financial year to the Coalition and Labor parties.

 Senior Liberal and Labor officials yesterday admitted they sought
 donations from the industry.

 The Opposition Leader, Mr Beazley, has signalled a Labor
 government would scrap tax concessions for tobacco industry
 research and development.

 This came after the Australian Medical Association revealed that
 tax breaks of nearly $500,000 a year helped support tobacco
 industry research and development into areas including the
 production of high-tar cigarettes for the African market.

 The Minister for Industry, Senator Minchin, has fiercely supported
 the concessions; the Minister for Health, Dr Wooldridge, has
 refused to comment.

 But Dr Wooldridge has previously distanced himself from a Liberal
 Party decision to accept the Philip Morris company's sponsorship
 of a business dinner at the party's 1998 Federal convention.

 "I think tobacco is the single biggest cause of illness in the
 community and tobacco sponsorship is not something I like
 personally," Dr Wooldridge said.

 A spokesman for British American Tobacco Australasia, Mr
 Brendan Brady, told the Herald yesterday his company often
 received requests from Liberal and Labor officials for financial
 support, particularly for election campaigns.

 A spokesman for Philip Morris, Mr Eric Windholz, said there was
 "ongoing dialogue" with the political parties at which the issue of
 party funding arose.

 He said this did not mean party officials made a "crude ...
 give-us-money" approach.

 Both spokesmen denied the companies contributed generously so
 as to extract favourable treatment. As organisations that generated
 $4 billion in tax revenues a year, they wanted to play the role
 expected of any big industry in relations with the Government and
 politics, they said.

 The executive director of the Liberal Party, Mr Lynton Crosby,
 said his party contacted many big Australian companies and
 individuals, including the cigarette manufacturers: "These are legal
 companies which employ thousands of Australians. If they want to
 make a contribution ... they are entitled to do so."

 The outgoing national secretary of the ALP, Mr Gary Gray, said
 "of course" the party approached the industry. "We ask for
 donations from 700 organisations."

 According to electoral commission figures for the last financial
 year, British America Tobacco gave $61,000 to State and Federal
 ALP branchesand slightly less to the Coalition parties - $55,000.

 Philip Morris's donations were weighted towards the Coalition:
 $62,800 went to the Liberal Party and $25,000 to the Nationals.
 The ALP received $41,510.