ASH, 102 Clifton Street, London EC2A 4HW Tel: 0171 739 5902
Fax: 0171 613 0531

ASH Daily News

Saturday 30 October – Monday 1 November 1999

Headlines
High Court blocks ad ban but Government will appeal
Tobacco companies seek talks with Government
Gallaher admits cancer and smoking link
Florida class-action trial resumes
BAT sells former Rothmans HQ
Virgin may take over funding of former tobacco sponsored sports


Full Text

High Court blocks ad ban but Government will appeal

The Government has announced that it is to appeal against the High
Court’s decision to block the tobacco advertising regulations which
were due to come into effect on 10 December. On Friday, Mr Justice
Turner granted an injunction to the UK’s leading tobacco companies
preventing implementation of the tobacco advertising ban in the UK
before a ruling by the European Court of Justice, which is due to be
heard in about a year’s time. The judge also added that is was
“strongly arguable” that the companies would succeed in their European
challenge. Health Secretary, Alan Milburn said: “The tobacco
industry will stop at nothing to try to undermine the advertising ban,
which will make our nation healthier.” Yvette Cooper, the new public
health minister, said the government would not be deflected and said
she was hopeful the ban would be in place as scheduled on 10 December.

Kevin Barron MP, Chairman of the All Party Group on Smoking and
Health, gave his support to the option of a private member’s bill to
ban tobacco advertising, should the government’s appeal fail. The
bill, drafted by ASH, is broadly similar to the government’s
regulations but would close the current potential loopholes governing
indirect advertising and point of sale advertising.

Stefano Hatfield, Editor of Campaign magazine, said tobacco companies
had spent millions of pounds on “farewell” advertising campaigns and
noted that “they will probably not want to use these campaigns now and
will probably revert to their penultimate advertisements. According
to Marketing, Silk Cut was poised to run an advertising campaign
featuring a fat lady with the inevitable strapline – “it’s not over
until the fat lady sings”.

The Independent and Sunday Telegraph include commentary on the High
Court decision. The Sunday Telegraph argues that the Government’s
“heavy sin taxes permit it to combine public health zeal with a
healthy profit” implying that it is being hypocritical in calling for
a ban on tobacco advertising while profiting from the sale of tobacco.
The Independent takes the line that the advertising ban is “illiberal
because it constrains freedom of expression” and argues that the
government now “look less than competent” because of the failure to
implement the ad ban.

Source: Financial Times, The Express, Daily Telegraph, The
Independent, The Guardian, (and most other papers 30/10/99); Sunday
Telegraph 31/10/99, Marketing, 28/10/99


Tobacco companies seek talks with Government

In the aftermath of the High Court’s decision, Sunday Business notes
that while the tobacco industry has reason to celebrate, “the
champagne is still on ice for the time being”. It seems unlikely
that the advertising budgets will be resurrected, at least until the
outcome of the government’s appeal is heard. The TMA had expressed
hope that the new Health Secretary, Alan Milburn, would be more
sympathetic to their cause, given that he has a Rothmans factory in
his constituency. However, Mr Milburn has made it quite clear where
he stands on tobacco and health matters, saying that he was “appalled
that the tobacco companies are trying to undermine a clear manifesto
commitment for which there is so much support.”

The industry is now trying to persuade ministers to let them put their
point of view. They claim dialogue with officials has collapsed in
recent years while “anti-smoking organisations such as ASH have the
ear of the government”. The industry is calling for a summit to
debate the issues instead of risking court-room clashes.

Source: Sunday Business, 31/10/99


Gallaher admits cancer and smoking link

Gallaher is the latest tobacco company to admit that smoking causes
cancer. In its submission to the Health Select committee’s inquiry
into the tobacco industry, the company states: “For many years,
Gallaher has proceeded on the assumption that cigarette smokers are
more likely to contract lung cancer and other diseases, such as
chronic bronchitis, heart disease and certain vascular diseases, than
non-smokers.”
But it stops short of saying that smoking is addictive, stating: “for
some it can be a very strong habit.” The announcement means that
Imperial Tobacco is the only major UK company that has not admitted a
link between smoking and disease. Imperial has also not made public
its submission to the Health Committee.

Source: Marketing Week, 28/10/99
Gallaher’s submission to the Health Select committee can be found at:
http://www.gallaher-group.com/submission/submission.htm


Florida class-action trial resumes

The second phase of the Florida class-action trial is due to resume
today. The court will decide whether the tobacco industry should pay
a potentially massive punitive-damage award. Two weeks ago a state
appeals court reversed its earlier decision that punitive damages
would have to be set one plaintiff at a time.

Source: Wall Street Journal Europe, 1/11/99


BAT sells former Rothmans HQ

BAT is to sell the country house and estate which served as the
headquarters for Rothmans International. The asking price is up to
£6.5 million. BAT decided the Grade 1 listed building is surplus to
requirements following the merger of the two companies.

Source: Evening Standard, 29/10/99


Virgin may take over funding of former tobacco sponsored sports

Virgin is understood to be considering taking over the sponsorship of
angling and clay pigeon shooting, to replace the current tobacco
sponsors. The task force set up by the government to help sports find
alternative sponsors has so far failed to help any sports but the
offer from Virgin could persuade other non-tobacco companies to follow
suit. Meanwhile, Compaq, the computer company, is poised to replace
Rothmans as the main sponsor of the BMW Williams Formula One team in
a deal worth up to £15m.

Source: The Observer, 31/10/99, Marketing Week, 28/10/99


Karl Brookes
Project Manager
102 Clifton Street
London EC2A 4HW
Tel: +44 (0)171-739 5902
Fax: +44 (0)171-613 0531
0589504040 (Mobile)
01426109768 (Pager)
Web: http://www.ash.org.uk