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Select Committee on Health Minutes of Evidence

Memorandum by Gallaher Group Plc

THE TOBACCO INDUSTRY AND THE HEALTH RISKS OF SMOKING (TB 8)

6. RELATIONSHIP WITH GOVERNMENT

6.1 From the early 1950s onwards, a significant degree of dialogue has occurred between Gallaher, the other tobacco manufacturers and Government (both directly and indirectly through its advisory bodies) concerning tobacco products on sale in the UK and the approach to be adopted in response to the smoking and health issue.

6.2 Gallaher's recognition of the health risks associated with smoking has underpinned its whole relationship, not only with Government, but with the very people who smoke Gallaher's products.

Results of dialogue

6.3 Without meaningful dialogue with and backing from Government and support for change from Gallaher, much of the progress which has been made over the years, in seeking to reduce the risks associated with smoking, could not have been achieved. The history of that co-operation has encompassed a wide variety of matters, such as:

(a) the conduct of scientific research in relation to the issue of smoking and health and the provision of funds by Gallaher (and others) to carry out that research;

(b) the provision of information and assistance by Gallaher (and others) to independent bodies carrying out research into smoking and health and to medical and scientific authorities such as the RCP, the ISCSH and the TPRT;

(c) the introduction of a standardised methodology for the measurement of tar and nicotine yields of cigarettes, designation of tar "bands" and packet labelling; and

(d) the development of tests for tobacco substitutes.

6.4 As a direct consequence of the working relationship with Government, Gallaher has:

(a) sought to reduce the risks associated with cigarette smoking by lowering tar yields (sales weighted average tar yields of cigarettes have been reduced substantially from the 1950s to around 10mg today) and through product development and marketing initiatives, made lower tar cigarette smoking more acceptable;

(b) explored a number of other routes, such as the tobacco substitutes programme pursued in Gallaher's case from 1968 to 1977, and again Gallaher's own profile printing proposal, which occupied a research programme for over three years;

(d) agreed to restrict its marketing activities over a period of time; and

(e) helped to ensure continuing awareness of the risks of smoking is placed in front of Gallaher's customers and the general public.

6.5 Although the issue of smoking and health has been central to the dialogue with Government, there are a number of other significant issues which Gallaher and the other tobacco manufacturers have considered with Government over the years, such as:

(a) marketing activities;

(b) under-age smoking;

(d) environmental tobacco smoke.

6.6 The level of contact and co-operation which has taken place between Gallaher, other tobacco manufacturers and Government has been recognised over the years. To place in perspective the degree of co-operation and the voluntary nature of the response of Gallaher and the other tobacco companies to steps backed or encouraged by Government, a summary of the history of that relationship, since the 1970s, is set out at paragraphs 6.7 to 6.20. Additionally, a summary of the voluntary agreements and the key provisions of those agreements which resulted from this relationship is contained at appendix 3.

6.7 On 16 March 1971, Sir Keith Joseph, Secretary of State for Social Services, made the announcement about health warnings in Parliament. He stated:[70]

"The tobacco manufacturers have agreed voluntarily—and I would like to pay a tribute to the responsible and helpful way in which they have approached these discussions—to print in clear type a warning on each cigarette packet, that, and I quote the words agreed, `Smoking can damage your health'."

He added:

"The industry has agreed to the establishment of a standing scientific liaison committee, composed of some scientists appointed by it and others appointed by me. This committee will keep under review the search for less dangerous kinds of smoking and will devise satisfactory methods of determining for publication the tar and nicotine yield of the various brands of cigarette on the market. My Department will seek to assist the industry to identify acceptable methods of determining whether new smoking materials are in fact less dangerous."

6.8 The SSLC, referred to by Sir Keith Joseph, was established in the same year. Gallaher (together with representatives from the Department of Health and Social Security, eminent professors of medicine, the MRC, the LGC and other tobacco manufacturers) was a member of that Committee. It reported to the Secretary of State for Social Services, the following year, on the significance to health of the tar and nicotine yields of cigarettes. That Committee put forward recommendations, based upon the conclusions contained in the second report of the RCP, in 1971, which included that there was good presumptive evidence that smoking was an important factor in causing lung cancer, chronic bronchitis and emphysema.

6.9 The SSLC recommendations, amongst other things, were the publication of tar and nicotine yields of cigarettes and information that would educate the public about the effects of tar and nicotine. That Committee also commented:[71]

"that there is sufficient evidence to act on the view that cigarettes with a low tar yield are less dangerous than those with a high yield and that there would be merit in encouraging smokers to change to lower tar yield cigarettes if the risks of continuing to smoke are made clear to them and if they cannot stop smoking altogether. The evidence about the effects of nicotine is less conclusive but in any case tar and nicotine content tend to be reduced together although not necessarily pro rata."

6.10 Some months after the first tar tables were published, the Government established the ISCSH, which, unlike the SSLC, did not have representation from the tobacco manufacturers. The Committee was appointed to concentrate, initially, on preparing guidelines for the testing of tobacco substitutes and additives. The ISCSH was also concerned with the steps that could be taken to reduce tar yields of cigarettes.

6.11 In August 1974, the Department of Health and Social Security produced draft Stage I and II Guidelines for testing in which it was stated:[72]

"The aim in the development of cigarettes containing tobacco substitutes is to reduce the health hazards of smoking and these guidelines are intended to assist manufacturers in the conduct of their research and in making submissions to the Committee."

6.12 Dr Hunter,[73] as he then was, presented the First ISCSH Report in April 1975 to the Secretaries of State for Social Services in the UK and wrote in his letter of presentation:[74]

"I would also like to express my gratitude to the representatives of companies which manufacture or import tobacco products in the United Kingdom and to the scientists in other organisations associated with these in the testing of tobacco substitutes for their co-operation."

6.13 In the conclusions and recommendations of the First ISCSH Report relating to the testing of products containing tobacco substitutes prior to their launch and the testing and use of additives in tobacco products, the Committee stated:[75]

"Cigarette smoke is a very complex mixture and though considerable research has been carried out there is still much to be learned about its composition, the effect on its composition when substitutes or additives are used with the tobacco, and the deleterious effects of the smoke on biological systems."

"The Committee has been gratified by the readiness of companies to co-operate with it."

6.14 In the House of Commons on 16 January 1976, the Minister of State, the then Dr Owen stated:[76]

"Under the voluntary part of the system, which, I believe, has the full agreement of the whole tobacco industry, Government and industry have agreed to work together on measures to reduce the risks to health from smoking. These measures will be based on completely independent medical and scientific advice."

6.15 On 8 March 1977 the Secretary of State for Social Services, the then David Ennals, announced two more voluntary agreements with the tobacco manufacturers relating to product modification and advertising and labelling. Speaking later in the day, when referring to the agreements with the tobacco manufacturers, Mr Ennals said:[77]

"The industry has been helpful and constructive during these discussions, and I would like to make public acknowledgement of that."

6.16 In December 1978, Lord Hunter, in his letter to the Health Ministers of the UK, presenting the Second Report of the ISCSH stated:[78]

"I should also like to thank the representatives and scientists of the tobacco industry for their co-operation."

6.17 Lord Hunter made recommendations the following year to Patrick Jenkin, the Secretary of State for Social Services, which included further substantial reductions in tar yields.[79] Lord Hunter also noted that the tobacco manufacturers had agreed to fund research in new directions which the Committee considered important.

6.18 In his letter to Norman Fowler, the Secretary of State for Social Services, presenting the Third Report of the ISCSH, in 1983, the ISCSH's chairman, Dr Peter Froggatt, as he then was, stated:[80]

"We attach great importance to the need for research intended to demonstrate the effects on human health of product modifications and we are grateful therefore to the tobacco industry for providing us with £3 million for this purpose. Indeed, I am pleased to say that we maintain a fruitful working relationship with the industry and derive great benefit from our continuing discussions both with the industry as a whole and with individual companies."

6.19 Sir Peter Froggatt when presenting the Fourth Report of the ISCSH in January 1988 commented that:[81]

"Since our third report we have been very active in funding research into the effects on human health of our product modification programme. The tobacco industry has provided further funds for this purpose over the past four years, in addition to the £3 million provided previously . . . We continue to maintain a constructive working relationship with the tobacco industry as a whole as well as with individual companies."

6.20 More recently, Baroness Cumberlege, the Junior Health Minister, stated in Parliament, that:[82]

"The Government have been working actively with the tobacco industry over the past 20 years to reduce the tar yield. It has been a highly successful policy."

Marketing activities

6.21 Gallaher recognises that there are social issues surrounding the marketing of tobacco products. In particular, marketing should not be directed at children.

6.22 Over many years there has been a continuing dialogue between Gallaher, principally via the TMA, and Government regarding the marketing of tobacco products. The history surrounding the voluntary agreements spans almost 30 years (see appendix 3).

6.23 The spirit of the voluntary agreements has always been embraced willingly by Gallaher. In particular, Gallaher recognises its responsibility with respect to those not old enough to make an informed choice, as an adult, as to whether or not to smoke.

6.24 Gallaher and Government have also co-operated to ensure effective monitoring of the agreements on advertising. Compliance is continuously monitored by the Committee for Monitoring Agreements on Tobacco Advertising and Sponsorship ("COMATAS"). COMATAS is headed by an independent chairman. Gallaher understands, however, that pending the introduction of the proposed legislation banning tobacco advertising, the Department of Health has not decided whether there is an ongoing role for COMATAS and no decision will be made until the end of 1999.

6.25 The proposed total ban on all tobacco advertising is intended to commence with effect from 10 December 1999. Gallaher has put on the record and repeats that the proposed legislation goes too far. Gallaher believes that it should be able to compete for market share and communicate with smokers.

Under-age smoking

6.26 Gallaher's position is that children should not smoke. Gallaher shares a concern at the extent of under-age smoking. Gallaher does not aim its marketing at children. The underlying principles of the voluntary agreements with Government ensure that advertisements, sports sponsorships and promotional activities are not designed to appeal to the young.

6.27 To try to reduce under-age smoking, Gallaher has, within the TMA, actively supported initiatives to prevent children purchasing cigarettes and has invested, along with other companies, in campaigns to make retailers aware of their responsibilities under the law; for instance, the campaigns run between 1986 and 1989 with advertising and point of sale materials to raise awareness of the law. As recently as 1997, the TMA supported the National Federation of Retailers' "No Excuses" campaign, involving parents and teachers, as well as retailers.

6.28 While each campaign and scheme had some success, it has become increasingly clear to Gallaher that a proof-of-age system would be of further assistance. Accordingly, Gallaher is among the companies to support the CitizenCard proof of age scheme (launched in 1999) with pre-launch funding and ongoing assistance. Gallaher believes that this scheme will provide the means for retailers to determine the age of customers and prevent under-age purchasing of tobacco products.

Trade issues, including taxation and smuggling

6.29 Gallaher has had meaningful dialogue with a number of Government departments over many years on a wide range of trade and taxation issues. Those involved in such discussions have included HM Customs & Excise, the Department of Trade & Industry and HM Treasury.