Anne Landman's Collection
Three Year Plan 950000 - 970000
Abstract
This Philip Morris (PM) document describes the strategies and tactics the company planned to use throughout Europe to defeat adverse legislation and "reinforce smoker confidence." Strategies include "fight[ing] to curtail anti-smoking lobby's most effective weapon (i.e. juvenile smoking)," developing and leveraging smokers rights groups throughout Europe to help reinforce smokers confidence, preserve PM's marketing ability, defeat taxes and "defuse pressure for mandatory changes" in warning labels on cigarettes.
A stated goal was to "Maintain the debate on ETS science among EU legislators." The document also states the company's intent to "Equip and politicize the European Horeca association - Hotrec" , "develop a 'hard core' group of businesses" to oppose government public health efforts.
Another goal is to "Capitalize on success of [industry-funded scientific front group] Associates for Research in the Science of Enjoyment (ARISE) in building recognition of the benefits of pleasure; expand scientific underpinning of 'pleasure' message through scientific roundtables..."
Yet another goal reveals the true purpose behind industry-sponsored youth programs:
"Continue to use voluntary industry codes and youth anti-smoking programs to pre-empt legislated restrictions."
At one point in discussing PM's activities regarding duty-free product, PM states "PM and tobacco industry to stay behind scenes but play driving role."
This document shows the depth and scope of Philip Morris' interference in European affairs.
Fields
- Quotes
CONSUMER FREEDOMS • Health concerns and the deteriorating social attitude regarding smokng and secondhand smoke are leading towards tighter smoking restrictions in which the IARC study may be a major factor.
EU LEVEL NATIONAL • Continue to provide input to achieve an objective IARC study; defuse the potential impact of an adverse study due in 1996 by promoting industry/government endorsement of objective science principles, and by advance education of legislators and the media/public on the weaknesses of ETS science exposure, confounders and risk assessments • Push the principle of subsidiarity for smoking legislation issues • Avoid a smoking ban on public transport proposed under the guise of 1993 Directive to protect transport workers • Avoid a backdoor smoking ban by securing acceptable EU (CEN) indoor air quality standards. • Extend solutions programmes on courtesy and tolerance. • Encourage strengthening of smokers rights groups and mobilisation of businesses against bans.
[Page 5]"
...Developing and leveraging smokers' rights groups (SRGs) will be crucial...Maintain the debate on ETS science among EU legislators...Undertake original studies on confounders [and] achieve wide publication to ensure balances perspective and coverage...
[Page 6]:
OBJECTIVES
Foster opposition to, and avoid support of ill-founded legislation.
STRATEGIES AND ACTIONS
--Activate mechanism for coordinated pan-European actions by SRGs to bring smokers' voice to EU legislative debate; expand existing SRGs and create new groups, where needed, to defend against ban threats...
--Equip and politicize the European Horeca association - Hotrec
--Develop opposition to smoking bans among targeted European Employers Associations and Unions sectors
--Develop "hard core" group of businesses opposed to bans using mobilization techniques.
[Page 8]:
OBJECTIVES
Reinforce smoker confidence and build support.
STRATEGIES and ACTIONS
--Continue Pan-European ad campaign to heighten general public awareness of ill-founded and unnecessary restrictions...
--Build mass smoker support through package inserts and synergies with brand/sales programs,
--Expand SRG membership bases, especially among opinion leaders and policy makers
--Extend active involvement of SRGs into legislative and public debates.
--Capitalize on success of Associates for Research in the Science of Enjoyment (ARISE) in building recognition of the benefits of pleasure; expand scientific underpinning of "pleasure" message through scientific roundtables...
[Page 11]:
OBJECTIVES
Continue to use voluntary industry codes and youth anti-smoking programs to pre-empt legislated restrictions.
[Page 14]:
OBJECTIVES
Fight to curtail the anti-tobacco lobby's most effective weapon (i.e, juvenile smoking) to impose futher restrictions.
STRATEGIES and ACTIONS
...Build joint programs with government
- Company
- Philip Morris
- Author
- Philip Morris
- Recipient
- Philip Morris
Association for Research in the Science of Enjoyment (1994)-Industry-funded scientific group out of the United Kingdom which proclaimed that a little pleasure is essential to good health. Created to combat tobacco control initatives. Previously knows as Associates for Research in Substance Enjoyment. Grouped tobacco use with pleasureable activities such as drinking tea, shopping, and eating chocolate.
Confederation of European Community Cigarette Manufacturers. Established in 1988 in the United Kingdom.
A branch of the Directorate General
An independent group of companies working in the fields of banking and finance, pensions, investment consulting and financial planning for private investors in Europe.
European acronym for an association of hotels, restaurants and cafes or caterers in the European Economic Community. Also seen spelled as "Ho.Re.Ca" or referred to as the Horecasector. Businesses or individuals pay membership dues to belong to Horeca.
International Agency for Research on Cancer - The cancer research arm of the WHO. Conducted a multi-center epidemiology study on ETS, initiated in 1988, data collection completed in 1994 and results were published in 1998
In places around the world where these associations did not exist, the tobacco industry created them to help defeat public health efforts around tobacco.
Worldwide Regulatory Affairs
Designed to stave off further legislated marketing restrictions
Document Images
EU REGION
EU TAX
OBJECTIVES
Continue pressure for early legislative solution
for automatic trigger relief based on
Commission's 1994 Article 4 Repon`. Prepare
for 1996 Article 4 Review and Council decision
in mid-1997, seeking removal or erosion of 57%
minimum requirement
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STRATEGIES and ACTIONS
Support Commission conclusion in 1994 Article 4 Report and encourage Commission to propose
legislative solution to resolve automatic trigger.
Keep issue active throughout 1996 when Commission is preparing 1996 Review/legislative proposal.
Organise symposia of academic experts, articles in journals, etc. Continue lobby of national
governments via NMAs.
Achieve acceptance by Parliament of the removal of 57% minimum andlor reconfirmation of adjunct
solution.
Continue to work for acceptance by the UK, leveraging the possible trade off with tax revisions
for
hand rolling tobacco (RYO).
Continue to demonstrate that the 57% has no impact on national interests of southern states in
order
to avoid blocks at ECOFIN.
Close at EU or national level those excise tax loopholes that we do not wish to be exploited in
member states, without running risk of opening definitional debate which would disadvantage
industry on product composition etc.
Be prepared with a workable proposal on tax approximation which moves the regime towards a
"specific" solution; continue educating appropriate players.
NATIONAL TAXATION
OBJECTlVES
Fight any initiative to raise the effective tax
burden on cigarettes and achieve the highest
possible degree of tax restructuring in all
markets.
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STRATEGIES and ACTIONS
Exert political pressure to contest all threats to raise cigarettes taxes. Develop and exploit
allies -
smokers, farmers, retailers, unions. In particular, build-up consumer opposition based on successful
campaigns run in 1995 (UK, France, Belgium, Italy) and extend concept to other countries (e.g.,
Germany, Netherlands, Spain)
Germany: A VAT rise is anticipated during plan period. Pressure will be maintained to achieve a
partial offset in the excise incidence following adoption of automatic trigger relief at the EU
level: We
shall strive to defer the periodic review of excise tax that adjusts for inflation erosion, then
minimize
the adjustment We shall urge the authorities, also at the EU level, to close all loopholes that
threaten fiscal revenues through products such as rolls, longies, or cigarillos.
It~ The state of public finances invites rises in indirect taxation. The consequences for Monital
and for contraband inflow will help us prevent cigarette excise increases. Tax restructuring plans
will
be advanced, leveraged by the offer of additional local manufacturing.
France: Currently, the demand for higher fiscal revenues is being met by price increases, while
efforts are being made to reduce revenue expectations, and tax restructuring is being proposed as a
solution that reduces the risk of price wars.
Spain: The negative impact of the 1995 VAT increase and excise alignment with the EU minimum of
57% will be used to argue against further rises. Efforts will continue to remove the VAT surcharge
borne by cigarettes. Any upsurge in contraband will be used as evidence of the need to restructure
excise tax. Similarly, an eventual switch in the MPPC from Ducados to Fortuna could be partly offset
for the industry through restructuring.
Bel ium: The vulnerability to price wars and the economic decline of the domestic industry will
be
exploited to resist excise incidence increases and to argue for tax restructuring.
Netherlands: Price changes in 1995 will delay Marlboro becoming MPPC for several years.
Continue to push for EU relief from 57% minimum.
NATIONAL TAXATION
OBJECTIVES
STRATEGIES and ACTIONS
Portugal: The demise of Tabaqueira under high ad vaiorem excise taxes and price competition are
inhibiting privatisation and constraining fiscal revenues. We shall argue for a more rational tax
regime with a more specific structure.
Greece: The high public deficit maintains pressure on all tax sources. Tax restructuring will
continue
to be offered in the face of local industry opposition as a means to raise fiscal revenues without
the
government resorting to illegal price control.
U.K.: The government is implementing a strategy to reduce smoking by 40% between 19990 and
2000 by raising excise taxes by at least 3% per annum above the rate of inflation. We will continue
the Fair Cigarette Tax Campaign begun in 1995, particularly targeting the expected Labor
Government
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CONSUMER FREEDOMS
Health concerns and the deteriorating social attitude regarding smoking and secondhand smoke are
leading towards tighter smoking restrictions in which
the IARC study may be a major factor.
EU LEVEL Continue to provide input to achieve an objective IARC study; defuse the potential
impact of an
adverse study due in 1996 by promoting industry/government endorsement of objective scientific
principles, and by advance education of legislators and the media/public on the weaknesses of ETS
science exposure, confounders and risk assessments
Push the principle of subsidiarity for smoking legislation issues
Avoid a smoking ban on public transport proposed under the guise of 1993 Directive to protect
transport workers
Avoid a backdoor smoking ban by securing acceptable EU (CEN) indoor air quality standards.
NATIONAL Extend solutions programmes on courtesy and tolerance.
Encourage strengthening of smokers rights groups and mobilisation of businesses against bans.
Secure self regulatory agreements among stakeholders (unions, employers, Horeca).
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CONSUMER FREEDOMS
In addition to national and local restrictions, the threat of EU-Ievel legislation is rapidly
building. Unlike smoking at work, which has been treated as a worker
safety & health matter, the EU currently does not have the legal competence to legislate public
smoking, which falls under the scope of public rather than worker
health. Nonetheless, the Commission can be expected to bring forward workplace restrictions, as with
the transport worker proposal, to lobby for a wider scope of
competence on public health during the next Treaty revisions, to exploit the IARC ETS Study, and to
continue encouraging national and local smoking bans.
Proactive and long-term programmes offer the best chance to minimise smoker/non-smoker polarisation
and to avoid restrictive legislation. Developing and
leveraging smokers' rights groups (SRGs) will be crucial.
Near term, we need to ensure appropriate interpretation of the IARC Study, now due for publication
during 1996. The 7-country study is based on original
research, thus reducing inconsistency in methodology, one of the more conspicuous flaws of the US
EPA Study on ETS. A compilation of results from all avaaaable
research is, however, expected to follow as a monograph, providing a double "hit" to the industry
during the Plan period.
OBJECTIVES STRATEGIES and ACTIONS
Avoid possible misrepresentation and
misinterpretation of the IARC Study that might
unjustifiably lead to legislated smoking
restrictions
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Obtain political endorsement of objective scientific principles; benefit from initiatives in
other industries to
achieve recognition of good epidemiological practices
Maintain the debate on ETS science among EU legislators
Undertake original studies on confounders and exposure to ensure these are appropriately
addressed in
the IARC Study, and achieve wide publication to ensure balanced perspective and coverage; coordinate
with WRA
Educate selected MEPs and EP officials on ETS science and risk assessment to develop an ally
network for
use with DG V (the Commission's Health Directorate)
Develop, test, and refine ETS messages and communications materials (including ads on ETS
science) for
IARC release; educate selected media targets prior to release
0 Conduct extensive education and training programme for NMAs on ETS/restrictions
CONSUMER FREEDOMS
OBJECTIVES STRATEGIES and ACTIONS
Foster opposition to, and avoid support of ill- Activate mechanism for coordinated pan-European
actions by SRGs to bring smokers' voice to EU
founded legislation legislative debate; expand existing SRGs and create new groups, where needed, to
defend against ban
threats
Continue European industry newsletter to disseminate third party news to EU legislators, policy
makers
and the media
Develop materials and programs statements on accommodation to support direct dialogue with
legislators,
allies and media
Equip and politicise the European Horeca association - Hotrec
Develop opposition to smoking bans among targeted European Employers Associations and Unions
sectors
Develop "hard-core" group of businesses opposed to bans using mobilisation techniques
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CONSUMER FREEDOMS
OBJECTIVES
Promote acceptance and implementation of
accommodation and tolerance programmes
at the workplace as the most effective
alternative to smoking bans
Obtain Commission withdrawal of proposed
Directive for the protection of transport
workers health and safety, amended by the
European Parliament to include a de facto
total smoking ban
Promote acceptance and implementation of
accommodation and tolerance programmes
in Horeca as the most effective alternative to
smoking bans
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STRATEGIES and ACTIONS
Secure adoption of self-regulatory agreements among employers and unions
Obtain support among employer groups and workers, through education on ETS sciencellAQ, using
workplace pan-European survey data; support adoption of accommodation programmes; develop
workplace materials; shift focus to priority workplace safety issues
Create an ally base among businesses for self-regulation through mobilisation
Work with allies to advocate reasonable legislation
Reinforce and extend support for German position to obtain withdrawal under principle for
subsidiarity
(UK, the Netherlands, Italy and Denmark)
Generate support for withdrawal among Commissioners and DG VII (Transport), in favour of an
acceptable proposal which provides maximum flexibility in line with existing Directives; delay
discussions
in Council working group
Create and market EU Horeca Guidelines to political/media targets
Maximise effectiveness of existing programmes in Belgium, Italy and Spain
Adapt Belgian ventilation project to other markets to support effective implementation of
legislation
Conduct and market with Horeca groups, a pan-European business owner survey to establish and
leverage opposition to severe legislative restrictions
Obtain support from Horeca sector for adoption of accommodation programme in the UK, Belgium, the
Netherlands, Italy and Spain
0 Develop economic impact data in Spain and Italy; market via Horeca associations
CONSUMER FREEDOMS
OBJECTIVES STRATEGIES and ACTIONS
Reinforce smoker confidence and build support Continue pan-European ad campaign to heighten
general public awareness of ill-founded
and unnecessary restrictions, followed by solution-oriented campaigns, and ETS science
campaign
Build mass smoker support through package inserts and synergies with brandlsales
programs
Limit extension of Article 129 of the Treaty on
European Union (Masstricht Treaty) and avoid
EU competence for binding legislation on public
health
Expand SRG membership bases, especially among opinion leaders and policy makers
Extend active involvement of SRGs into legislative and public debates
Capitalise on success of Associates for Research in Science of Enjoyment (ARISE) in
building recognition and acceptance of the benefits of pleasure; expand scientific
underpinning of "pleasure" message through scientific roundtables
Identify and mobilise potential allies, at member state level, and across European industries
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MARKETING FREEDOMS
Strict legislation on marketing restrictions is being sought at both the EU and national levels
EU Council remains deadlocked on total ad ban legislation
Of the three acceding members to the EU, Sweden and Austria do not support Commission ad ban
proposal
CURRENT STATUS OF NATIONAL MARKETING FREEDOMS
Cigarette Adver4sing Gemiany Italy France Spain Belgium Ne ands Greece UK.
National Press Yes No No Yes Yes Yes Yes Yes
Poster Yes No No Yes Yes Yes Yes Yes
Cinema Yes No No Yes Umited No Yes No
Consumer Promotions Limited No Limited Limited Limited Limited Limited Yes
Brand Image Promotions Yes Yes Limited Yes Yes Yes Yes Limited
POSM Yes Yes Limited Yes Yes Yes Yes Yes
Sponsorship Limited Yes Limited Yes Yes Yes Yes Limited
MARKETING FREEDOMS
EU LEVEL
NATIONAL
Maintain blocking minority of total ad ban in Council following EU enlargement and UK
government change
Advocate withdrawal of Commission proposal
Prevent further legislation; where appropriate, institute effective voluntary codes and
youth smoking programs
In France, push to regain sponsorship and some advertising rights
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MARKETING FREEDOMS
The industry is threatened on the three levels: European, national and local.
With respect to an EU ad_ ban, the position of the blocking minority remains strong; in fact Sweden
and Austria oppose the Commission EU ad ban proposal. This
would limit impact of possible change of government in the UK.
The EU legal situation remains unresolved; while Council's Legal Service finds that the Commission's
ad ban proposal, as a public health issue, would be beyond
its competence, the Commission Legal Service maintains that the EU is competent on the basis of
removing intro-Community trade distortions.
Ad bans covering the national media are in place in Italy, Portugal, France and Finland, and further
restrictions are threatened in Belgium, Spain, Greece,
Netherlands, United Kingdom and Sweden.
OBJECTIVES STRATEGIES and ACTIONS
Ensure that the EU ad ban issue is blocked; and Maintain the minority necessary in Council to
block an ad ban; and work to increase blocking minority
get Commission proposal withdrawn (Sweden, Austria, Spain, Luxembourg)
Exploit increasing support for withdrawal of Commission proposal in Council
Engage in more pro-active lobbying using Canadian Supreme Court ruling, economic impact studies
and mobilising opponents to advertising bans.
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