TOBACCO FIRMS TAKE LEGAL ACTION OVER ADVERT BAN

BRITISH tobacco companies yesterday mounted a legal challenge to a European
Union plan to ban advertising, writes David Shand.

The Tobacco Manufacturers Association, whose members include Imperial
Tobacco, Rothmans and Gallaher Group, took the action in the High Court, as
it called on the Government to abandon plans to pass the European directive
during the next session of parliament.

It argued that enforcing the ban could exacerbate the problems caused by
illegal imports, which it claims cost the exchequer up to UKP3 billion a
year, and put jobs at risk.

John Carlisle, head of public affairs at the TMA, said: "A total ban really
is a step too far, it is totally unnecessary and will prove ineffective.

"It rides roughshod over freedom of expression and human rights. And they
really should not poke their nose into health issues which are outside
their jurisdiction."

The tobacco industry spends about UKP100 million on advertising in Europe
every year. The UK tobacco market is worth about UKP13 billion in annual
sales with 14 million smokers.

The EU plans to ban almost all tobacco advertising and sponsorship by 2006.
It passed the ban last December by a vote of 11 of the 15 member states,
the narrowest margin possible under qualified majority rules. Germany
opposed the ban and has said it will challenge it.

Poster advertising will be banned in June 2000, with press advertising cut
the next year. Sponsorship is to be stubbed out in 2003 but sponsorship of
worldwide events will be allowed until 2006.

Manufacturers are already preparing to spend heavily on advertising before
a ban is brought in, with Rothmans set to allocate UKP35 million to
launching its Winfield brand of cigarettes across Europe.

The TMA wants the Government to postpone the parliamentary bill until it
knows whether it has secured a judicial review in a few months' time.

It said the Government should decide on measures affecting the domestic
market.

David Swan, the TMA chief executive, claimed: "According to legal experts,
including the European parliament's legal affairs committee and the
European Council's own legal advisers, they [the commission] do not have a
sound basis in law."

Mr Swan said there was no evidence that a ban would reduce consumption, and
pointed to countries like Norway, where consumption had risen after severe
advertising restrictions had been imposed.

Checked-by: Mike Gogulski