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January, 2012:

Ruling means tobacco lawsuit can go ahead

Jan 10th, 2012
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Subtitle: http://www.canadianlawyermag.com/legalfeeds/643/Ruling-means-tobacco-lawsuit-can-go-ahead.html

Written by Jennifer Brown Posted Date: January 10, 2012

The Ontario Superior Court has rejected an application by a group of foreign tobacco companies seeking to have Ontario’s $50-billion lawsuit against them dismissed on the basis the court does not have jurisdiction over them.

Photo: Shutterstock

The group of companies, referred to in Justice Barbara A. Conway’s Jan. 4 decision as the “Jurisdiction Challenging Defendants” are seven of the foreign defendants.

In a statement released Jan. 6, Ontario Attorney General John Gerretsen said, “We are pleased with the court’s decision which paves the way for Ontario’s lawsuit to continue.”

The Ontario v. Rothmans Inc. decision is considered to be a significant one in Ontario’s efforts to recover past and ongoing health-care costs borne by taxpayers in the province due to tobacco-related illness.

The judge also ruled that the lawsuit can proceed against 14 tobacco companies. On Sept. 29, 2009, Ontario launched its $50-billion lawsuit against tobacco companies both domestic and foreign including  Imperial Tobacco Canada Ltd., Rothmans, RJ Reynolds Tobacco International Inc., and others for health-care costs.

Ontario’s statement of claim alleges that the defendant tobacco companies knew about the addictiveness of cigarettes and the health damages they caused and deceived the public by misrepresenting the risks. It also claims they failed to warn the public about the dangers of smoking, promoted cigarettes to children and teens and did not take all available steps to reduce the risks caused by their products.

The tobacco companies have denied the claims and warned the money isn’t there to pay the claim should it be awarded. They say the lawsuit is also hypocritical because the government has collected the taxes on tobacco products for years.

In her decision, Conway wrote: “. . . the Crown has established a good arguable case that the JCDs conspired and acted in concert in committing tobacco related wrongs. The damage is alleged to have occurred in Ontario. This is sufficient to establish a connection between the JCDs and the province. Moreover, this conspiracy, if proven, relates to matters of significance in Ontario — allegedly misleading the public and the government about the harmful effects of cigarettes and exposure to second hand smoke.”

Conway went on to say: “The Supreme Court of Canada has already decided the cost recovery legislation in British Columbia is constitutionally valid. In doing so the court recognized that the legislation could apply to defendants located outside the jurisdiction. . . .”

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Jennifer Brown

Jennifer Brown

Jennifer Brown is the editor of Canadian Lawyer InHouse. She has been a business magazine writer and editor for 10 years covering the IT, occupational health and safety, and security sectors for the business-to-business press prior to arriving at InHouse. She was also a newspaper reporter for five years in the Greater Toronto Area covering health care and education before going to work at a daily news online portal reporting on the technology sector

WHO statement in response to the Business Standard news article “WHO imposes Rs 250-cr tobacco tax on India”

Jan 10th, 2012
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http://www.who.int/tobacco/communications/statements/tobacco_tax_india_2012/
en/index.html

Statement
10 January 2012

In reference to recent articles published on WHO’s supposed imposition of a
tobacco tax on WHO Member States/countries (e.g., “WHO imposes Rs 250-cr
tobacco tax on India”), a number of inaccurate statements are made about the
World Health Organization (WHO), the WHO Framework Convention on Tobacco
Control (WHO FCTC) and WHO’s collective work to control tobacco use around
the world.

WHO does not have any mandate to impose taxes on its Member States, nor does
the WHO FCTC, an international treaty to which India is a Party, envisages
any such tax (solidarity tobacco tax) referred to in the article. Any
statements to the contrary are false. WHO has no power of taxation, and no
control over Member States.

Quite distinct from the WHO FCTC, there has been another, separate global
discussion about financing health care in which the concept of a tax levied
voluntarily by national governments in the support of health care has been
raised. Specifically, in October 2011, WHO released a discussion paper
titled “The Solidarity Tobacco Contribution (STC)”. The concept was
initially proposed by a working group set up by World Bank to explore
innovative sources of financing health care and envisions a voluntary action
by interested governments to adopt an additional tax levy as part of their
regular tobacco excise on each pack of cigarettes consumed. This would
increase the effective excise tax rate on cigarettes towards the WHO
recommended level of 70% of the retail price and, by generating substantial
revenues, could ensure a sustainable revenue stream for financing
international health. WHO has estimated that, by introducing USD
0.05/0.03/0.01 per pack of cigarette sold in 43 selected
high-/middle-/low-income countries, respectively, a solidarity tobacco
contribution (STC) would generate an additional USD 5.46 billion. A number
of countries in the G-20 group of most developed countries have expressed
interest in pursing the STC as a way to improve resource allocation for
global health. For example, in addition to support for tobacco control,
funds could be directed as new and additional contributions to make
significant progress towards achieving Millennium Development Goal 4,
reducing child mortality.

Tobacco use is one of the leading preventable causes of death. The global
tobacco epidemic kills nearly 6 million people each year; 600,000 of these
are people exposed to second-hand smoke. Unless we act, by 2030 tobacco use
will kill up to 8 million people annually, and more than 80% of those deaths
will occur in low- and middle-income countries. WHO and other relevant UN
agencies are therefore working with Member States to increase the
prioritization of NCD control and prevention and to address the risk factors
underling NCDs.

One of the critical challenges in ensuring effective tobacco control is the
need to tackle the influence the tobacco industry has on politics and media.
In this vein, the 2012 World No Tobacco Day (WNTD) theme is focused on the
need to expose and counter the tobacco industry’s brazen and increasingly
aggressive attempts to distort and undermine the WHO FCTC.

WHO notes that the author of the above-cited article has not provided any
citations or referenced any sources. WHO welcomes open dialogue on all its
work, insofar as that is how public health is accomplished – transparently,
in the public sphere. Such dialogue is impossible, though, when predicated
on poorly researched articles without foundation in fact.

Singapore keeping tabs on Aussie tobacco regulation

Jan 10th, 2012
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Singaploh laah takes note – How about HKG ?

The Straits Times
www.straitstimes.com

Published on Jan 10, 2012
Lim Hng Kiang, Health
Singapore keeping tabs on Aussie tobacco regulation

Singapore is keeping a close eye on a development in Australia in which tobacco companies are banned from displaying their distinctive colours, brand designs and corporate logos on cigarette packs.

Australia is the first country in the world to introduce such plain packaging requirements, which tobacco companies have challenged on grounds of trademark rights infringement, said Minister for Trade and Industry Lim Hng Kiang in Parliament on Monday.

He was replying to Dr Janil Puthucheary (Pasir Ris-Punggol GRC) who was concerned that Singapore’s strict tobacco control measures could be at risk as a result of the Trans-Pacific Partnership (TPP) trade negotiations, given the challenge the Australian government is facing on its tobacco regulation.

The TPP is being negotiated among the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam.

Copyright © 2011 Singapore Press Holdings. All rights reserved.

HK$29m of illicit tobacco seized in Christmas post

Jan 10th, 2012
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South China Morning Post – 10 Jan 2012

Customs officials will work with mainland and British authorities to stub out lucrative trade

More than 10 tonnes of illicit tobacco destined for Britain has been confiscated in Hong Kong in the past five weeks, prompting customs officials to step up co-operation with British and mainland authorities to stop the illegal trade.

The seizure of the tobacco – meant to be used in hand-rolled cigarettes – was about 10 times more than all the rolling tobacco seized in the first 11 months of last year, according to Hong Kong customs.

A senior customs officer said the tobacco was made on the mainland and could be sold for up to 22 times more than its original price, a high profit margin that was driving the illegal trade.

It would be worth an estimated HK$29 million on the Hong Kong market, according to Mark Lee Yuen-man, head of customs’ cigarette investigation division.

“The seized tobacco is worth from HK$50 to HK$100 per kg, but can be sold for HK$1,100 per kg in Britain,” he said. “The selling price is 50 per cent less than the genuine product costs in Britain.”

Investigators have learned that the illicit tobacco, packaged in bags bearing the Golden Virginia brand name, was smuggled into Hong Kong from the mainland then mailed to Britain by speed post, Lee said.

Over the past five weeks, customs officers at the airport’s airmail centre have intercepted more than 600 Britain-bound parcels containing 6.7 tonnes of the tobacco.

Kong Shui-wing, deputy head of customs’ revenue and general investigation bureau, said nearly 170 tobacco parcels, each weighing about 10kg, were intercepted at the airport on a single day last month.

Comparing the crackdown at the airport’s airmail centre to a soccer game, Kong said: “Our officers were just like goalkeepers trying to stop each goal as they kept shooting.”

The parcels were apparently mailed from different post offices, he said. “We believe that a vehicle was used to go to different post offices and they [the counterfeiters] mailed several parcels at each post office,” Kong said.

To avoid detection, the parcels were declared as gifts for the Christmas and New Year’s holiday. They were addressed to people in various parts of Britain, he said. “We believe the illicit tobacco was mailed during the busy festive period in an attempt to avoid being picked up by our officers for examination.”

Kong compared the battle to stop tobacco smuggling to a “game” of capability and intelligence between smugglers and officers

Inside each bag of tobacco was a price tag in euros. “We believe this is a tactic counterfeiters use to make consumers think the tobacco is a parallel product from other European countries,” Kong said.

According to Hong Kong customs, another 3.5 tonnes of the tobacco was seized in two warehouses, in Kwai Chung and Tai Kok Tsui, in two raids mounted yesterday and on December 14.

Four men, including one from the mainland, were arrested during the two raids.

clifford.lo@scmp.com

Alliance One and China Tobacco Announce the Creation of a New Joint Venture in Brazil

Jan 9th, 2012
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press release

Jan. 9, 2012, 9:07 a.m. EST

Alliance One and China Tobacco Announce the Creation of a New Joint Venture in Brazil
MORRISVILLE, N.C., Jan. 9, 2012 /PRNewswire via COMTEX/ — Alliance One International, Inc. /quotes/zigman/372210/quotes/nls/aoi AOI +2.38% today announced that its Brazilian subsidiary Alliance One Brasil Exportadora de Tabacos (“AOB”) and China Tabaco Internacional do Brasil (“CTIB”) have signed a definitive agreement to form a new joint venture company in Brazil.

Under the agreement, AOB will transfer to the joint venture production contracts with approximately six thousand integrated farmers for the upcoming 2011/2012 crop. The joint venture’s administrative and buying functions will operate in a portion of Alliance One’s recently expanded facilities in Venancio Aires and tobacco processing will occur in AOB’s facility. The joint venture will be owned 51% by CTIB and 49% by AOB.

Mr. Liang Deqing, president of CTIB, commented: “The high quality of the Brazilian tobacco combined with Brazil’s capacity to grow volumes, has meant that Brazilian Tobacco is a highly desirable component in the better quality Chinese cigarettes. For a long time we have been studying the Brazilian market with the intention to start buying directly from the tobacco farmers. The joint venture is the union of two powerhouses of the tobacco industry, a strategic alliance that strengthens all of the parties in the Brazilian tobacco market, one of the most important in the world.”

Alexandre Strohschoen, Alliance One Regional Director South America, stated: “The main objective of the joint venture is to promote the production of quality tobacco to supply the Chinese market. China’s cigarette market is the biggest and fastest growing market in the world and this agreement reinforces Brazil as one of the main suppliers of this market. It is a partnership aligned to Alliance One’s strategy of growth and sustainability.”

Pieter Sikkel, Alliance One’s President, remarked: “China Tobacco is a highly valued partner and we are pleased that our collaborative relationship has again expanded, to now include the new joint venture in Brazil. Consistent with our strategic focus, this arrangement helps a key customer achieve one of their stated goals, while providing AOI incremental growth opportunities and further alignment with the largest and fastest growing market in the world.”

Alliance One International is a leading independent leaf tobacco merchant serving the world’s large multinational cigarette manufacturers. For more information on Alliance One, visit the Company’s website at www.aointl.com .

SOURCE Alliance One International, Inc.

Copyright (C) 2012 PR Newswire. All rights reserved

Four arrested in HK$27m tobacco seizure

Jan 9th, 2012
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09-01-2012 – RTHK
Customs officers have arrested four people after seizing around 9,500 kilogrammes of tobacco worth about HK$27-million. Much of it was found in packets at the Airmail Centre, waiting to be posted to Britain. The authorities say they’ve smashed two tobacco smuggling syndicates during a month-long operation.

$1 Spent On Smoking Cessation Saves $3

Jan 6th, 2012
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http://commonhealth.wbur.org/2012/01/1-spent-on-smoking-cessation-saves-3/
A program that helped low income Massachusetts residents stop smoking saved
three-dollars for every dollar spent. That’s the conclusion of a study from
George Washington University published online today in the journal PLoS One.

“While we have always known that helping people quit smoking is an
investment in their health, this study shows that our efforts are also a
sound financial investment for the Commonwealth,” said Governor Deval
Patrick in a statement. “This represents another positive outcome of health
reform in Massachusetts.”

http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0029665

Tobacco Could Be Forced Into Plain Packaging in the U.K.

Jan 6th, 2012
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http://www.thirdage.com/news/tobacco-could-be-forced-into-plain-packaging-in-the-u-k_01-06-2012?page=1

In the Fall of 2012, all cigarette brands will be required to have warning labels covering the top half of the pack both front and back.

By the end of 2012, all tobacco products in Australia will be packaged in plain beige wrapping, accompanied by graphic warnings about the dangers of consuming the product. Now, officials in the United Kingdom are considering adopting a similar law of their own to counteract the negative effects of colorful cigarette branding, Medical News reports.

British Health Secretary Andrew Lansley expressed his support for the idea after a recent survey from the British Heart Foundation found that one in six young people in the country make decisions on which brand of cigarette to smoke based on packaging design. Citing government data showing that about 200,000 young people in Britain take up smoking every year, Lansley said discouraging people from smoking is a “public health priority.”

Advertising for tobacco is banned in the country, but many believe the bright and colorful packaging of cigarettes constitutes a form of advertising. The government will begin considering the idea of requiring plain packaging in a public consultation early this year.

If the U.K. decides to go forward with the plan, it could face a barrage of resistance from the tobacco industry, which has already challenged Australia’s new law in court. Philip Morris, British American Tobacco and Imperial Tobacco joined forces to bring the issue to the country’s High Court.

Similarly, lobbying group Freedom Organization for the Right to Enjoy Smoking Tobacco opposes the hypothetical law, saying that plain packaging would hold little sway in helping young people decide not to smoke.

“There is no evidence that plain packs will make any difference to youth smoking rates,” said Simon Clark, director of the group. “The vast majority of young people are influenced not by packaging but by peer pressure and the fact that members of their family are smokers. Tens of millions of people have been exposed to branded cigarette packaging for decades and have never been encouraged to start smoking. To suggest that people are so easily influenced by the sight of a colored pack is not only patronizing, it’s downright offensive.”

Already, 80,000 Britons die of smoking-related diseases every year, Medical News said.

Ontario judge rules tobacco lawsuit can proceed

Jan 6th, 2012
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http://license.icopyright.net/user/viewFreeUse.act?fuid=MTUxODYzOTA%3D

Province’s $50-billion action targets 14 companies for increasing health costs by selling addictive product

An Ontario judge has ruled that a controversial $50-billion lawsuit can proceed against 14 tobacco companies that are accused of raising health care costs in Ontario by selling a risky and addictive product.

In a ruling earlier this week, Madam Justice Barbara Conway of the Ontario Superior Court rejected an application from seven foreign-based companies that wanted a lawsuit launched by the provincial government thrown out on the basis that the court had no jurisdiction over them.

Ontario Attorney-General John Gerretsen said the ruling paves the way for the lawsuit to proceed.

“The province has achieved a milestone in its efforts to recover past and ongoing health care costs borne by Ontario taxpayers due to tobacco-related illness,” Mr. Gerretsen said in a statement Friday.

The lawsuit was launched in 2009 and claimed that the tobacco companies knew about the addictiveness of cigarettes and the health damage they caused but deceived the public by misrepresenting the risks and failing to warn consumers about the dangers of smoking.

The lawsuit also claims the companies promoted cigarettes to children and teenagers and did not take all available steps to reduce the risks caused by their products.

The claims have not been proven in court.

The government said it is seeking $50-billion in damages because smoking is the number one cause of premature death and illness in Ontario and costs the health care system $1.6-billion annually.

“We will continue to vigorously pursue this litigation on behalf of all Ontarians,” Mr. Gerretsen said.

The tobacco companies named in the lawsuit include Rothmans Benson & Hedges Inc., JTI-Macdonald Corp. and Imperial Tobacco Canada Ltd. as well as their parent companies.

The firms have denied the claims. The industry has warned that the lawsuit would drive the companies into bankruptcy because there is no hidden pot of money available to pay the enormous claims if they succeed, and has called the lawsuit “hypocritical” because the Ontario government has collected billions of dollars in taxes on tobacco products over the years.

The Ontario court ruling is consistent with rulings in other provinces that have launched similar lawsuits to recoup health care costs.

British Columbia, New Brunswick and Newfoundland have also sued the tobacco companies, and courts in B.C. and New Brunswick have also upheld the right to include the Canadian firms’ foreign parent companies in the suits.

A lawyer for the Canadian Cancer Society said the Ontario lawsuit is “enormous” in importance and it is critical to have the foreign parent companies named in the case. “It’s important. The allegations are that they participated and directed the conspiracy to deny the health effects and have a cover-up and destroy research,” Rob Cunningham said.

“And also they have very deep pockets, and they are able to pay a very substantial judgment. … The foreign parent companies have enormous capacity to pay, more than just the Canadian companies.”

Tobacco companies have faced lawsuits from U.S. states for decades, reaching settlements totalling almost $250-billion with those jurisdictions over the past 25 years, Mr. Cunningham said.

A time-line of significant events and news media coverage.

Jan 5th, 2012
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Download PDF : Time-line

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