[Intl-tobacco] BBC: Tobacco Industry Under Attack in the EU

[Robert Weissman]

Tobacco Industry Under Attack
Source: BBC Online, Wednesday, 6/14/00
Wednesday, 14 June, 2000, 12:20 GMT 13:20 UK

The tobacco industry is under fire from all sides with calls for tougher
regulation in the UK and Europe.

Euro-MPs have agreed proposals which could lead to vastly-enlarged health
warnings, but have rejected calls for gruesome pictures of rotting teeth
and lungs on packets.

And MPs in the UK have urged the Department of Trade and Industry to
investigate claims linking a tobacco firm to large-scale cigarette
smuggling.

The House of Commons Health Select Committee's hard-hitting report,
released on Wednesday, says that criminal proceedings should be considered
against British American Tobacco (BAT) should the allegations prove true.

However, the European decision could prove more damaging to the industry
in general, with warnings to cover at least 35% of the front of the pack.

Currently the warnings cover 4% of the pack.

In addition the use of terms such as "mild" and "low tar" would be banned.

The Commons report also calls for packets to carry harder-hitting health
warnings, including messages that smoking could cause impotence.

It wants the creation of a new body to oversee advertising and labelling,
and an end to the current voluntary agreements with the industry.

=09=09=09Warnings are small on current packets

The MPs said: "These messages should be harder hitting and more relevant
to consumers than those currently used."

The committee also called on the government to set tougher targets to stop
people smoking - and to protect non-smokers from the effects of other
people's smoke.

Tobacco "bootlegging" costs the Treasury an estimated =A32.5bn a year in
lost duty.

It is alleged that some companies were "complicit" in organised tobacco
smuggling by being prepared to supply large quantities of cigarettes to
sources in continental Europe used by organised bootlegging operations.

BAT has been accused of orchestrating, managing and controlling cigarette
smuggling. It strenuously denies the claims.

The committee said: "The allegations need to be looked at independently
and we therefore call on the DTI to investigate them. If they prove to be
substantiated, the case for criminal proceedings against BAT should be
considered.

"If they prove to be false, then those perpetrating them should publicly
apologise."

Trade and Industry Secretary Stephen Byers could use powers under the
Companies Act to launch a probe of BAT's accounts and grill its staff
under oath.

Claims denied


BAT's deputy chairman, former Conservative Chancellor of the Exchequer
Kenneth Clarke, described the claims as "far-fetched", insisting that the
company only sold to legitimate outlets, and paid all excise duties.

Clive Bates, from anti-smoking group Ash, welcomed both decisions: "What
we need now is a complete rethink and overhaul of the regulatory framework
and a serious investigation into the rogue business practices related to
smuggling."

John Carlisle, from the Tobacco Manufacturer's Association, said: "Of
course the health warnings should be on, but what we don't want is our own
brand names being obliterated by health warnings - which, at the end of
the day, aren't going to reduce cigarette consumption."

The European proposals have infuriated tobacco industry bosses.

Denise Claveloux, corporate affairs director for Philip Morris Europe,
said:  "What we're looking for is balance. I'm not sure we're achieving
balance with the kinds of numbers that are being suggested."

The European tobacco directive will still have to be approved by EU member
governments.

Other recommendations in the Commons Health Select Committee's report
include:

Regarding nicotine as comparable to drugs such as heroin and cocaine when
anti-smoking strategies are producedEncouraging the use of proof of age
cards to stop tobacco products being sold to children.Banning shopkeepers
found guilty of selling cigarettes to under-16s from selling any tobacco
productsIntroducing plain packaging for all tobacco products so all
cigarette packs are the same colour and have brand names in a standard
type faceMaking nicotine replacement therapies available on prescription
for a total of six weeksMaking tobacco companies list the additives in
tobacco on packets