Health authority targets tobacco giants

A British health authority will today begin legal action against the tobacco industry to recover the costs of providing medical care for smokers following the landmark pounds 225bn settlement made in the United States over the weekend.

But tobacco manufacturers in the United Kingdom played down the likelihood of a US-style legal settlement here, arguing that there was no justification for a similar deal.

Terry Hanafin, chief executive of Croydon Health Authority, said that he would today be consulting legal firms about bringing an action against the tobacco companies and would seek advice from the Department of Health and from the anti-smoking pressure group, Ash.

"We are interested not only in seeking financial compensation but also in reducing nicotine levels in cigarettes to make them less addictive. The aim is ultimately to improve peoples' health," Mr Hanafin said. Croydon has asked the other 11 authorities in the south Thames region to share the costs.

Last year, Ash failed in an application for legal aid to bring a group action against two tobacco companies, Gallaher and Imperial Tobacco, on behalf of 40 smokers who had contracted lung cancer and other diseases. However, legal experts said yesterday that establishing a general link between smoking and the medical burden on the National Health Service would be easier than proving it in individual cases.

Amanda Sandford, a spokeswoman for Ash, said that the US settlement would have implications for the UK industry while the British Medical Association said it opened the way for a similar settlement here. "Companies here may be forced to come to some sort of deal. This is a good opportunity for smokers to come forward and pressure for compensation," Ms Sandford said.

But Imperial Tobacco and Gallaher, which together account for almost four-fifths of the 80 billion cigarettes sold in the UK each year, said there were no grounds for a similar settlement. Gareth Davis, chief executive of Imperial Tobacco which sells Embassy and Superkings brands, said: "The US situation has no bearing on the UK. This deal is basically an extra tax on cigarettes in the US, where excise duties are the lowest in the world. UK tobacco companies pay pounds 10.5bn to the exchequer compared to pounds 8.5bn in cigarette taxes in the US, where the market is six times bigger." Ian Birks, a spokesman for Gallaher, said: "We will never settle. We will defend all cases vigorously."

There was a rocky reception over the weekend for the US settlement, as veteran foes of the industry challenged whether it would be sufficient to tame cigarette manufacturers and significantly reduce smoking.

Michael Moore, the Attorney-General of Mississippi and the principal player in reeling in the tobacco firms, predicted that President Bill Clinton would back the deal. "President Clinton wants to do something for the children of this country. So, that's why I have faith that we'll get their support".

But the former commissioner of the Food and Drug Administration (FDA), David Kessler, who more than anyone helped turn the political tide against the industry, reiterated his doubts about the package, warning that the payout would be used to "line people's pockets" rather than fund public health measures. He also pointed to fine print which suggests that the FDA's powers over nicotine use would be limited.

In Congress, Orrin Hatch, who heads the Senate Judiciary Committee, hinted that reviewing the package and putting it into law would be a slow and agonising process. "There are some 10 committees on Capitol Hill that all will be claiming some part of this settlement. So it is not going to be an easy thing," he said yesterday.

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