US OFFER TO SUE TOBACCO INDUSTRY

THE Government will be offered a virtually risk free option of
reclaiming the multi billion pound health costs of smoking, with Irish
and American legal teams prepared to sue the tobacco industry on
behalf of the State on a no win, no fee basis.

An Irish solicitors' firm and United States lawyers will make a joint
formal submission to the Joint Committee on Health and Children in the
next week, offering to prosecute cases on behalf of the State.

Well placed members of the committee said the offer would probably
convince them to recommend legal action to the Government.

Ironically, taxes and duties on tobacco sales are worth pounds 800m to
the exchequer.

Other legal firms are expected to offer their services in the next two
weeks, giving the Government a gilt edged chance of reclaiming
billions in compensation.

The legal firms say that it will cost the State nothing to follow the
lead of the US Government and take prosecutions, because they will be
offering their services free of charge.

A State claim would probably run into billions of pounds, with the
health costs related to smoking estimated at up to pounds 1.6 billion
a year, when sick days from work and social welfare benefits are added
to the expense of hospital treatment.

The offer being prepared by the private legal firms could bring them
in seven figure fees if the cases were successful, but it would
eliminate the risk of the Exchequer facing a multi million pound legal
bill if a State case failed.

The possibility of litigation is currently being examined by the
Department of Health's Anti Tobacco Policy Group, established early
last year. They will be awaiting the Joint Committee's recommendations
before their own report is finalised, probably before the end of November.

Joint committee member, Fine Gael TD, Alan Shatter, plans to present a
draft report on tobacco and health to the 18 other members before the
end of October.

He declined to comment on the contents of his report yesterday, but
the Joint Committee is expected to recommend that the State pursue a
legal battle with the industry.

One senior committee member said the offer of free legal services
would tip the balance in favour of the State suing: On the basis of
oral undertakings and guarantees given, it would appear to be on the
cards that the committee will recommend taking action against the
tobacco companies, he said.

Members of the all party group have met with more than 20 legal
experts in the United States and representatives of the State of
Florida Attorney General's Office to discuss the legal proceedings
they have taken against the US tobacco companies.

They have also met with the US Food and Drugs Administration and Fair
Trade Commission in the past six months.

The Department of Health declined to comment on the legal offer, but
its own policy group is likely to follow the recommendations of the
Joint Committee.

Fianna FE1il's Batt O'Keeffe, chairman of the joint committee, said
they would have to see the written submissions and evaluate any hidden
costs before making any decisions.

We have met with one group and I understand another legal group will
be meeting with us shortly, he said.

The Oireachtas committee are also expected to come down strongly
against tobacco advertising, which is already banned from television
and radio broadcasting.