Health Committee Report

British American Tobacco PLC
14 June 2000


HEALTH COMMITTEE REPORT A 'THOUGHTFUL BUT INCONSISTENT'
CONTRIBUTION TO PROGRESS ON TOBACCO ISSUES

British American Tobacco believes today's report by the UK House of
Commons Health Committee into the tobacco industry and the health risks
of smoking is a thoughtful but inconsistent contribution to achieving
progress on the issues surrounding tobacco.
On an initial reading, the report adopts some constructive proposals
already in the public domain, including many already proposed to the
Government by British American Tobacco, but contains many
contradictions.

*  The Committee says: 'we have not found any explicit evidence to
suggest that tobacco companies specifically and knowingly target
children'.
We welcome this finding, which reflects the reality of our marketing,
and we are pleased that the Committee has adopted our suggestions for
independent research into why teenagers smoke, ways for teenagers
themselves to be involved in messages to their peers about adult
products such as cigarettes, and more Government support for proof-of-
age cards.

*  However, in proposals to tackle under-age smoking, the Committee has
stopped short of recommending several effective steps, such as raising
the UK legal purchase age from 16 to 18.
We believe the UK legal age should be raised to 18, and that our own and
others' efforts to ensure that only adults smoke will continue to be
hampered by this inconsistency.

*  The Committee calls on the Government 'to keep its distance from the
tobacco industry'.
The UK Government is the tobacco industry's major stakeholder, gaining
about 10 times as much in taxes as the three UK tobacco companies earn
in combined global profits after tax.  We believe that constructive
dialogue with Government is - and has been in the past - a key to
progress. We do not accept that progress can be made on the many
important issues surrounding tobacco without meaningful dialogue between
Government and those responsible companies who know most about the
product.

*  The Committee claims the current voluntary agreements between the
Government and the tobacco industry - for example on advertising and
cigarette ingredients - are ineffective, and calls for an Independent
Tobacco Regulator.
It is not clear how much a tobacco regulator could add when the industry
is already strictly regulated.  We believe that the most important
aspect of any regulation - voluntary or statutory - is that it should be
based on sound science, independent research, and objective assessment
of the facts.  There is a vast difference between an objective
regulatory body and one that becomes another vehicle for the anti-
tobacco lobby.
Existing regulations and voluntary agreements have given the UK one of
the tightest tobacco control regimes in Europe. There is no UK TV,
cinema or radio tobacco advertising, and all aspects of tobacco
promotion are strictly controlled.

*  We are pleased that the Committee 'strongly supports' our view that
objective scientific appraisal should be the basis for regulation of
tobacco ingredients.
We believe that objective science, objective research, and objective
appraisal of the facts should be the basis for resolution of all tobacco
issues.  We regret that the Committee's report makes some exaggerated
claims which appear to lack the objectivity that it praises.

*  The Committee calls for greater understanding of the apparent health
improvements in the population following the introduction of lower tar
cigarettes, but calls for bans on descriptors such as 'low tar' or
'light'.
It is difficult to see how a strategy of lower tar cigarettes - which
the Committee appears to endorse - could be advanced and developed if
ways of informing adult consumers about the products were banned.
British American Tobacco has called for independent research into the
effects of lower tar cigarettes, and discussions amongst tobacco
companies, Government, public health groups and the medical profession
to develop adult consumer messages on smoking fewer cigarettes, quitting
sooner, and - if the research supports it - smoking lighter cigarettes.

*  The Committee calls for further development of 'safer' cigarettes,
and notes that efforts by tobacco companies to market these in the past
have been 'stymied' by the regulatory framework.
We welcome these proposals, which clearly adopt our call for support to
our efforts to develop lower risk products, and our call to be able
communicate such developments to adult consumers unencumbered by
opportunistic criticism.

*  The Committee calls on the tobacco industry to 'work constructively
with the WHO', and to provide summaries of actions they have taken to co-
operate with it.
We would like nothing better than to achieve genuine co-operation with
the WHO. We have repeatedly called on the WHO to listen to, and
consider, the views of the industry and its related stakeholders - whom
the WHO has specifically excluded to date in its efforts on tobacco
issues. The WHO has now belatedly offered 'hearings' for the tobacco
industry and its stakeholders, restricting each participant to 5 minutes
of comments and 5 pages of written points - a 'consultation' which at
best appears somewhat limited.

*  The Committee welcomes the fact that British American Tobacco has
launched its own independent enquiry following the serious allegations
made by a freelance journalist about smuggling.
The company has appointed a leading independent UK law firm with no
previous connections to the Group to examine its current business
practices and report to a special committee of independent non-executive
directors. Their findings will be reported to shareholders and will be
shared with the Department of Trade and Industry, and with the
Committee, if they so wish.

                                ENQUIRIES
                 British American Tobacco Press Office:
      Fran Morrison, Dave Betteridge, Jody Humble, Scott Hailstone
                              020 7845 2888