House of Lords - Explanatory Note
Tobacco Advertising and Promotion Bill - continued          House of Lords

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Clause 19: Transitional Provisions

65.     This clause gives the Secretary of State, or Scottish Ministers, powers to make regulations to specify when the ban on sponsorship in clause 9 is to take effect. This may not be later than 1 October 2006.

Clause 21: Commencement, etc.

66.     See Paragraph 71 below.


67.     The financial effects of the Bill as far as central Government is concerned are likely to be between £50,000 to £100,000. This will comprise expenditure on training for trading standards officers in relation to enforcement and information campaigns to raise awareness of the ban. This will be met from existing budgets. Enforcement authorities may wish to reprioritise workloads in order to accommodate the initial impact of the Act. The financial implications are likely to be de minimis for any given authority.


68.     The Bill will not increase the number of permanent staff in the public service. The Government expects there to be an initial period following the coming into force of the ban when trading standards officers will want to inform retailers and others of the ban, and possibly carry out enforcement action. This may require reprioritisation of resources.


69.     It is difficult to make precise estimates of the impact of a measure of this kind. The Government has estimated that the proposed ban on tobacco advertising, promotion and sponsorship would reduce consumption of tobacco products by approximately 2.5% eventually. Assuming that this estimate is accurate, the turnover of the UK tobacco industry could be expected to fall by around £300m per annum, although the amounts spent on sponsorship would be saved and could be reinvested elsewhere in the business. This would amount to around £90m-£100m per annum. Based on these assumptions, the Government estimates that the companies' profitability could fall by around £20m per annum and that the advertising industry could lose £50m per annum, although much of this could be recouped from other clients. Other businesses would benefit from consumers' redirected expenditure. Sports would lose their existing sponsorship money from tobacco but it is difficult to estimate the extent to which this sponsorship income would be recovered from other sources. The Government has assumed that it will lose £250m per annum in lost tax revenue through the reduction in tobacco consumption which is assumed to follow a ban on tobacco advertising, although some of this would be recouped if consumers spent the money on other taxable products.

70.     On the benefits side, based on the assumption of a 2.5% fall in consumption and prevalence, the NHS in England alone would save between £20m and £40m per annum and at least 1500 lives per annum would be saved, rising to 3000 per annum in the longer term.


71.     This Bill will come into force on a day to be appointed by the Secretary of State. The intention is that the appointed date will be two months after Royal Assent, save for the following transitional arrangements. A further three months will be allowed for:

  • advertising within retail outlets

  • in-pack promotion schemes ( promotion schemes where coupons inserted into packs, or parts of a pack, are collected by customers who later redeem them for goods)

  • direct marketing contracts (only contracts which were set up before 8 October 1999).


72.     Section 19 of the Human Rights Act requires the Minister in charge of a Bill in either House of Parliament to make a statement about the compatibility of the provisions of the Bill with the Convention rights (defined by section 1 of that Act). On 14th February 2001, Lord Hunt of King's Heath, the Parliamentary Under Secretary of State for Health, made the following statement on introduction of this Bill in the House of Lords:

"In my view the provisions of the Tobacco Advertising and Promotion Bill are compatible with the Convention rights."


February 2001

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    Prepared: 16 February 2001