obscured by the smoke

8/8/2019 Obscured by the Smoke

1/20

Obscured by the smoke

British American Tobaccos deathly lobbying agenda in the EU

Corporate Europe Observatory, June 2009


2/20


3/20


4/20


5/20


6/20


7/20

Obscured by the smoke - BATs deathly lobbying agenda in the EU, Corporate Europe Observatory, June 2009 7

Box 2 | A Register with many loopholes

In June 2008, the European Commission launched its very first voluntary lobby transparency register. According to the Commission, citizenscan now see the huge diversity and multitude of organisations, companies, public affaires (sic) consultants, NGOs and think-tanks active inrepresenting their interests in Brussels. The wider public is now supposed to have access to an unprecedented level of information, as theycan see, for the very first time, who lobbies the European institutions, with what motivations and also against what financial background. 38

The reality is very different: the compliance rate is low and the overall quality of information disclosed is very poor39 as the example of BATshows.

One big loophole in the current register is the way the Commission advises interest representatives how to avoid double-counting of lobbyingcosts. Double-counting would for instance occur if a trade association lobbying on behalf of member companies disclosed amounts that werealso entered by the individual companies. To avoid this, registrants are encouraged to agree with their partners and clients who reports what,says the Commission in its guidelines for registration40.

Clearly BAT has not agreed with its partners and clients who reports what. BAT did not disclose funds given to CECCM, ESTA and ESTOC. Andin turn, those organisations did not disclose BATs contribution to their respective budgets.

BAT should also have disclosed fees it paid to unregistered associations (EBPS, FOREST, etc.) which were clearly involved in lobbying the EUinstitutions. As these associations have not registered they cannot disclose the fees received from BAT. So it was BATs responsibility to publishthose figures.

Indeed the Commission seems more interested in avoiding double-counting of reported costs than in ensuring that those costs are at leastreported once. To be a true democratic tool, the register should be mandatory instead of voluntary, develop far more detailed requirements andguidance for financial disclosure, make data entries comparable and include an obligation to report the names of lobbyists. It should also be

randomly controlled with sanctions in case of non compliance with registration rules.


8/20


9/20


10/20


11/20


12/20


13/20

Conclusion

Of course the exact amount spent by BAT on EU lobbying is difficultto estimate. BATs lobbying tools are diffuse and varied. But there isno doubt that BATs contributions to think tanks, industryassociations and member state activity total more than the amountBAT declares in the EU register.

In under-estimating its lobbying expenditure in this way, BAT isexploiting the ambiguity of the Commission's guidelines. Inparticular, it is exploiting the instructions on double-counting oflobbying costs, exposing one of the many flaws in the voluntaryregistration scheme. BAT has clearly failed to ensure that some ofits contributions to lobby groups are disclosed by the lobby groupsthemselves.

BAT has also failed to report its expenditure on activities which itdescribes as corporate social responsibility (CSR). Under theeuphemism of EU stakeholder dialogue, BAT has been able to

directly access EU policy makers and put forward its views onlegislation under discussion. By disguising this contact as CSR, BATclearly contravenes the Commissions definition of lobbying.

Why does this matter?

This report highlights just some of BATs attempts to influence thelegislative process at EU level and also in the member states. The

fact that these activities are primarily hidden from the public is onereason for concern, but this is overshadowed by the more damagingfact that BATs lobbying activities are so blatantly not in the publicinterest. The EU is responsible for legislation designed to protectpublic and consumer health. BAT is a engaged in marketing aproduct that is clearly damaging to public health.

Unless effective measures are implemented to help current smokers

quit and prevent young people from smoking, tobacco use is set tokill 10 million people by 2020 in the world and one billion this

century, according to the WHO

89

.

BAT, and other companies engaged in similarly damaging activities,should not be allowed to influence a debate in which they have suchblatant commercial interests. And the EU has no business inallowing them into such debates.



14/20

Annex 1 | BAT in short

Established in 1902 when the United Kingdoms Imperial TobaccoCompany and the American Tobacco Company agreed to form ajoint venture, British American Tobacco (BAT) introduces itself todayas the worlds most international tobacco group90, with around 300brands sold in more than 180 markets. International brands includeLucky Strike, Pall Mall, Dunhill, Kent, Vogue, Rothmans, PeterStuyvesant, Benson & Hedges, Winfield, John Player, State Express555, KOOL, and Viceroy91.

Based in London, UK, BAT is listed in the FTSE 100 Index with amarket capitalisation exceeding 34.4 billion (39.2 billion) as of 26May 200992. The company employs 54,000 people worldwideincluding approximately 10,00093 in the EU. In 2007, 684 billion BATcigarettes were sold in the world, 35.8% in Europe94.

BAT held a 17.1% share of the international cigarette market in

2007, and is the worlds second-biggest publicly traded cigarettemaker behind Philip Morris International which holds a 18.7%share95. The World Health Organisation (WHO) puts the globalannual death toll from tobacco today at 5 million, of which half diebefore age 6596. That is 855,000 deaths a year attributable to BATproducts.



15/20


16/20


17/20

Annex 4 | BAT advertisement promoting technical solutionsto avoid environmental tobacco smoke in public places.

Published in the May 2007 edition ofVorwrts

, the monthlynewspaper of the German Social Democratic Party (SPD)



18/20
http://www.bat.com/group/sites/UK__3MNFEN.nsf/vwPagesWebLive/DO76CJXShttp://www.sustainability.com/aboutsustainability/article_previous.asp?id=979http://www.bat.com/group/sites/UK__3MNFEN.nsf/vwPagesWebLive/DO6ZKKSXhttp://www.nottingham.ac.uk/business/ICCSR/about/FoundationofTheICCSR.htmlhttp://www.ash.org.uk/files/documents/ASH_373.pdfhttp://www.bat.com/group/sites/uk__3mnfen.nsf/vwPagesWebLive/DO6RZGHL/$FILE/medMD5PRUNF.pdfhttp://www.bat.com/group/sites/uk__3mnfen.nsf/vwPagesWebLive/DO6RZGHL/$FILE/medMD5PRUNF.pdfhttp://www.telegraph.co.uk/news/uknews/1497520/Clarke-pulls-out-of-speech-on-tobacco.htmlhttp://www.telegraph.co.uk/news/uknews/1497520/Clarke-pulls-out-of-speech-on-tobacco.htmlhttp://www.bat.com/group/sites/UK__3MNFEN.nsf/vwPagesWebLive/F5AE03E3BB591A1EC12573140052EE6Ehttp://www.bat.com/group/sites/UK__3MNFEN.nsf/vwPagesWebLive/F5AE03E3BB591A1EC12573140052EE6Ehttp://legacy.library.ucsf.edu/tid/dew70a99http://legacy.library.ucsf.edu/tid/ach07a99/pdfhttp://www.brandrepublic.com/News/100464/http://ec.europa.eu/transparency/docs/reg/FAQ_en.pdfhttp://www.alter-eu.org/en/publications/commission-lobby-register-fails-transparency-testhttp://ec.europa.eu/transparency/index_en.htmhttp://www.forestonline.org/output/How-Forest-Works.aspxhttp://www.forestonline.org/output/faqs-1-2.aspxhttp://ec.europa.eu/transparency/docs/reg/FAQ_en.pdfhttp://www.iabp.org/programes/epp.htmhttp://www.iht.com/articles/ap/2008/04/25/europe/EU-GEN-EU-Parliament-Lobbying.phphttp://euobserver.com/?aid=26042http://www.bat.com/group/sites/uk__3mnfen.nsf/vwPagesWebLive/DO726K33?opendocument&SKN=1http://www.bat.com/group/sites/uk__3mnfen.nsf/vwPagesWebLive/DO726K33?opendocument&SKN=1http://www.britcham.be/membership/benefits.asphttp://www.iarc.fr/en/Media-Centre/IARC-Press-Releases/Archives-2006-2004/2005/Tobacco-industry-undermining-the-basis-of-trust-in-Sciencehttp://www.iarc.fr/en/Media-Centre/IARC-Press-Releases/Archives-2006-2004/2005/Tobacco-industry-undermining-the-basis-of-trust-in-Sciencehttp://ec.europa.eu/governance/better_regulation/index_en.htmhttp://www.epc.eu/TEWN/pdf/668109152_EPC%20Working%20Paper%2017%20Enhancing%20the%20role%20of%20science%20in%20EU%20decision%20making%20(revised).pdfhttp://www.epc.eu/TEWN/pdf/668109152_EPC%20Working%20Paper%2017%20Enhancing%20the%20role%20of%20science%20in%20EU%20decision%20making%20(revised).pdfhttp://www.opensecrets.org/lobby/clientsum.php?year=2000&lname=Brown+%26+Williamson+Tobaccohttp://www.opensecrets.org/lobby/clientsum.php?year=2000&lname=Brown+%26+Williamson+Tobaccohttp://www.opensecrets.org/lobby/clientsum.php?lname=Reynolds+American&year=2008http://business.timesonline.co.uk/tol/business/article1003012.ecehttps://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=78292321460-50https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=78292321460-50https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=33813881291-36https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=33813881291-36https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=2427500988-58https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=2427500988-58http://ec.europa.eu/health/ph_overview/strategy/docs/R-016.pdfhttp://ec.europa.eu/health/ph_determinants/life_style/Tobacco/Documents/gp_smoke_en.pdfhttp://ec.europa.eu/health/ph_determinants/life_style/Tobacco/Documents/gp_smoke_en.pdfhttp://www.batresponsibility.eu/downloads/CECCMSubmission_fulltext.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/common/consultations/tax/tobacco/37BATl.pdfhttp://ec.europa.eu/taxation_customs/resources/documents/common/consultations/tax/tobacco/37BATl.pdfhttp://www.cancer.org/downloads/AA/TobaccoAtlas29.pdfhttp://www.europeanvoice.com/article/2009/04/the-snuffing-out-of-snus/64547.aspxhttp://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090408/sweden_snus_090408/20090408?hub=Healthhttp://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090408/sweden_snus_090408/20090408?hub=Healthhttp://ec.europa.eu/health/ph_risk/committees/04_scenihr/docs/scenihr_o_013.pdfhttp://www.europarl.europa.eu/parliament/expert/lobbyAlphaOrderByOrg.do?letter=Bhttp://ec.europa.eu/health-eu/my_lifestyle/tobacco/index_en.htmhttp://www.philipmorrisinternational.com/global/media/PC/PMI_selectslides_031108.pdfhttp://www.who.int/fctc/en/http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+WQ+P-2008-4694+0+DOC+XML+V0//EN&language=ENhttp://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+WQ+P-2008-4694+0+DOC+XML+V0//EN&language=ENhttp://euobserver.com/?aid=26515http://tobacco.health.usyd.edu.au/site/supersite/news/pdfs/CSR_20060721.pdf


19/20
https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=0138855852-93https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=0138855852-93http://www.esta.be/contact.htmlhttps://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=1496873833-97https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=1496873833-97http://www.ceccm.eu/services.htmlhttp://www.who.int/tobacco/health_priority/en/index.htmlhttp://www.euromonitor.com/Consolidation_endgame_in_sight_but_is_there_one_more_big_throw_of_the_dicehttp://www.euromonitor.com/Consolidation_endgame_in_sight_but_is_there_one_more_big_throw_of_the_dicehttp://www.bat.com/group/sites/uk__3mnfen.nsf/vwPagesWebLive/DO52AK34/$FILE/medMD7D9KKN.pdfhttp://www.bat.com/group/sites/uk__3mnfen.nsf/vwPagesWebLive/DO52AK34/$FILE/medMD7D9KKN.pdfhttp://www.batresponsibility.eu/downloads/BAT_social_report_2006-2007.pdfhttp://www.citywire.co.uk/personal/share-prices-and-performance/share-factsheet.aspx?InstrumentID=501&XDU=16239e5d-1c64-49f5-a775-e2c13cbbd489&XDS=O&XDNG=True&XDKL=0&XDURL=http%3a%2f%2fwww.citywire.co.uk%2fShares%2fShareFactsheet.aspx%3fInstrumentID%3d501http://www.citywire.co.uk/personal/share-prices-and-performance/share-factsheet.aspx?InstrumentID=501&XDU=16239e5d-1c64-49f5-a775-e2c13cbbd489&XDS=O&XDNG=True&XDKL=0&XDURL=http%3a%2f%2fwww.citywire.co.uk%2fShares%2fShareFactsheet.aspx%3fInstrumentID%3d501http://www.citywire.co.uk/personal/share-prices-and-performance/share-factsheet.aspx?InstrumentID=501&XDU=16239e5d-1c64-49f5-a775-e2c13cbbd489&XDS=O&XDNG=True&XDKL=0&XDURL=http%3a%2f%2fwww.citywire.co.uk%2fShares%2fShareFactsheet.aspx%3fInstrumentID%3d501http://www.citywire.co.uk/personal/share-prices-and-performance/share-factsheet.aspx?InstrumentID=501&XDU=16239e5d-1c64-49f5-a775-e2c13cbbd489&XDS=O&XDNG=True&XDKL=0&XDURL=http%3a%2f%2fwww.citywire.co.uk%2fShares%2fShareFactsheet.aspx%3fInstrumentID%3d501http://www.bat.com/http://www.cancer.org/downloads/AA/TobaccoAtlas10.pdfhttp://ec.europa.eu/health/ph_determinants/life_style/Tobacco/Documents/R-130_en.pdfhttp://ec.europa.eu/health/ph_determinants/life_style/Tobacco/Documents/R-137_en.pdfhttp://www.bat.de/oneweb/sites/BAT_677KXQ.nsf/vwPagesWebLive/DO726CPG?opendocument&SID=7283DD91403D8699EAC41ADE278913D5&DTC=&TMP=1http://www.bat.de/oneweb/sites/BAT_677KXQ.nsf/vwPagesWebLive/DO726CPG?opendocument&SID=7283DD91403D8699EAC41ADE278913D5&DTC=&TMP=1http://www.forum-rauchfrei.de/aktuelles/batwerbung%20vorwaerts_0507.pdfhttp://www.forum-rauchfrei.de/aktuelles/tabakwerbung_aktuell.htmhttp://www.lshtm.ac.uk/cgch/tobacco/Tob%20Control%202007,%2016,%200002%20Germany%20TI%20still%20dictatespolicy.pdfhttp://www.lshtm.ac.uk/cgch/tobacco/Tob%20Control%202007,%2016,%200002%20Germany%20TI%20still%20dictatespolicy.pdfhttp://www.bat.de/oneweb/sites/BAT_677KXQ.nsf/vwPagesWebLive/DO6CHH45?opendocument&SID=87CB421BEA5217CD733C6C4A36CD6E98&DTC=&TMP=1http://www.bat.de/oneweb/sites/BAT_677KXQ.nsf/vwPagesWebLive/DO6CHH45?opendocument&SID=87CB421BEA5217CD733C6C4A36CD6E98&DTC=&TMP=1http://www.scribd.com/doc/14098024/Germany-Paradise-for-the-tobacco-industryhttp://ec.europa.eu/health/ph_determinants/life_style/Tobacco/Documents/R-055_en.pdfhttp://www.lesechos.fr/info/france/4842062-tabac-le-gouvernement-veut-mettre-fin-au-tourisme-fiscal-.htmhttp://www.lesechos.fr/info/france/4842062-tabac-le-gouvernement-veut-mettre-fin-au-tourisme-fiscal-.htmhttp://www.lesechos.fr/info/france/4842062-tabac-le-gouvernement-veut-mettre-fin-au-tourisme-fiscal-.htmhttp://www.lesechos.fr/info/france/4842062-tabac-le-gouvernement-veut-mettre-fin-au-tourisme-fiscal-.htmhttp://www.scribd.com/doc/14098024/Germany-Paradise-for-the-tobacco-industryhttp://diepresse.com/home/spectrum/zeichenderzeit/477662/index.dohttps://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=29815741326-06https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=29815741326-06http://ec.europa.eu/transparency/docs/reg/FAQ_en.pdfhttps://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=8972319724-16https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=8972319724-16http://ec.europa.eu/transparency/docs/reg/FAQ_en.pdfhttp://www.europeanvoice.com/Article/41784.aspxhttp://legacy.library.ucsf.edu/tid/mpx92a99http://www.eureporter.co.uk/court-of-justice-upholds-directive-on-tobacco-marketing-business-archive-100565.htmlhttp://www.eureporter.co.uk/court-of-justice-upholds-directive-on-tobacco-marketing-business-archive-100565.htmlhttp://www.ehnheart.org/files/BAT%20event-150127A.pdfhttp://www.teameurope.info/node/262http://www.chathamhouse.org.uk/about/chathamhouserule/http://www.batresponsibility.eu/stk_dialogue06.htmlhttp://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/04/334&format=HTML&aged=0&language=EN&guiLanguage=enhttp://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/04/334&format=HTML&aged=0&language=EN&guiLanguage=enhttp://ec.europa.eu/transparency/docs/reg/FAQ_en.pdfhttp://documents.scribd.com/docs/1sp3p9uhb4jslmo0khal.pdf


20/20


103According to the team picture on the front page of the ESTOC website ;

http://estoc.org/estoc.asp.104

https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=92802501097-37105

The founding associations are: Union internationale des planteurs de tabac (UNITAB),Fdration europenne des transformateurs de tabac (FETRATAB), Confederation ofEuropean Community Cigarette Manufacturers (CECCM), Groupement des industrieseuropennes du tabac (GITES) and Confdration Europenne des Dtaillants en Tabac(CEDT).106

http://legacy.library.ucsf.edu/tid/bnm81c00 107

Phone conversation with Antonella Pederiva, secretary general of CECCM, 7 April 2009.108

http://www.sourcewatch.org/index.php?title=Third_party_technique109

http://news.bbc.co.uk/2/hi/business/3246875.stm110

http://www.guardian.co.uk/business/2003/may/08/burma.internationalnews111http://www.guardian.co.uk/uk/2005/oct/17/northkorea.smoking112http://old.ash.org.uk/html/conduct/pdfs/batbigwheeze.pdf113http://www.wmf.org/pdf/WMF_2006_Annual_Report.pdf114

http://lso.co.uk/aboutus/supportingthelso/ourpartners115http://legacy.library.ucsf.edu/tid/dew70a99 116http://www.who.int/tobacco/media/en/who_inquiry.pdf117

http://www.ifsh.org/New/Sponsors.asp
http://estoc.org/estoc.asphttps://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=92802501097-37https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=92802501097-37https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=92802501097-37http://legacy.library.ucsf.edu/tid/bnm81c00http://www.sourcewatch.org/index.php?title=Third_party_techniquehttp://www.sourcewatch.org/index.php?title=Third_party_techniquehttp://news.bbc.co.uk/2/hi/business/3246875.stmhttp://news.bbc.co.uk/2/hi/business/3246875.stmhttp://www.guardian.co.uk/business/2003/may/08/burma.internationalnewshttp://www.guardian.co.uk/business/2003/may/08/burma.internationalnewshttp://www.guardian.co.uk/uk/2005/oct/17/northkorea.smokinghttp://www.guardian.co.uk/uk/2005/oct/17/northkorea.smokinghttp://old.ash.org.uk/html/conduct/pdfs/batbigwheeze.pdfhttp://old.ash.org.uk/html/conduct/pdfs/batbigwheeze.pdfhttp://www.wmf.org/pdf/WMF_2006_Annual_Report.pdfhttp://www.wmf.org/pdf/WMF_2006_Annual_Report.pdfhttp://lso.co.uk/aboutus/supportingthelso/ourpartnershttp://lso.co.uk/aboutus/supportingthelso/ourpartnershttp://legacy.library.ucsf.edu/tid/dew70a99http://legacy.library.ucsf.edu/tid/dew70a99http://www.who.int/tobacco/media/en/who_inquiry.pdfhttp://www.ifsh.org/New/Sponsors.asphttp://www.ifsh.org/New/Sponsors.asphttp://www.ifsh.org/New/Sponsors.asphttp://www.who.int/tobacco/media/en/who_inquiry.pdfhttp://legacy.library.ucsf.edu/tid/dew70a99http://lso.co.uk/aboutus/supportingthelso/ourpartnershttp://www.wmf.org/pdf/WMF_2006_Annual_Report.pdfhttp://old.ash.org.uk/html/conduct/pdfs/batbigwheeze.pdfhttp://www.guardian.co.uk/uk/2005/oct/17/northkorea.smokinghttp://www.guardian.co.uk/business/2003/may/08/burma.internationalnewshttp://news.bbc.co.uk/2/hi/business/3246875.stmhttp://www.sourcewatch.org/index.php?title=Third_party_techniquehttp://legacy.library.ucsf.edu/tid/bnm81c00https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=92802501097-37https://webgate.ec.europa.eu/transparency/regrin/consultation/displaylobbyist.do?id=92802501097-37http://estoc.org/estoc.asp