3 :j
Pt-native D-iir= For-la
M* current percentage- split of allocations by the
CAC companies is based
on a proposal from the R&D Co-cmi:dnatcr in 1986
which was mcdi ied by the
TSPT to reflect size of compwV and its
contribution to Group R&D and
technology. 7he lack of a mathematical fonmfla
upon %ftich contribution can
be explained has been a source of concern;
currently SUK7 is under
pressure from tax aud=ities to acccunt for its
ccinbahitions to
centralised R&D and finds the absence of a fccuila
to be a real wea3kness.
TM have si-il,
In view of these problems a formula is proposed
that identifies two
elements:
1. a fivpA cost by all contributors retlecting
'club membership', i.e.
the benefit of havuq the MC facility.
2. a vmy-iahle - - 1, reflecting the extent to
which an individual company
will benefit fr= the research i.e. a turnover
related elemen .
The simplest way to combine these elements is to
make half of the total
Ifixad' and the remaindex 'variable'. The fcnzila
an
this basis is:
CI - R (0.5 x Tj + 0.5)
( Eri N )
itme ci - individual contributim (ns)
N - number of catitributors
Ti - yet t=rver of contributor in previous year
(I~s)
Eri - total riot turnover of contz buticris in
previous, year (rz)
R w of all centralised RSD (i.e. FFC & SSG) (Es)
Tn practice, to tax authority requirements, the
c0ntt~ns W=ld
probably have to be recalculated at year end and
carrecticm made such
that turnover in the existing year is us--J.
The comparison of contributicris for 1990 by
countries using the ex1sting
method and the now fdrmul-, is as follows:
Existing Now
FRC SG Total
COOO C000 EOOO LDW
BkTM. 1.162 0.086 1.248 1.241
BSW 1.089 0.086 1.175 1.289
BA= 0.690 0.086 0.776 0.704
rM 0.690 0.086 0.776 0.738
3.631 0.344 3.975 3.972
If the formula were agreed, the only iss;ues to be
- -idexed
each yew are the costs of tin Fiesearch (both
intexnal and e:&Axnal) .
BATCo document for Province of BritiSh Columbia 25
October 1999


P-eement-I Proiect Oost-~z
Smoke O-Iitv Trwrovem-nt
% cost
Ciamosensory Pasearch 25.38 0.986
Infliienoe of Cigarette Design on Quality 3.75
0.146
Tobacco Modification for Quality 5.9 0.232
35 uO9 1.36
product TrTKYvation
Low tar/nic. ratio 8.61 0.334
Ultra-light weight str ucture~ 6.62 0.257
Eluticn/migration of coppourils 4.4 0.171
19.6 0.762
FJBCP,l Atorv I
Peduced Igniticn Potential 2.42 0.094
Search for Bicassays 7.51 0.292
Additives, materials clearance 12.36 0.480
Tobacco Modificat-ion for Pegulatory Iss; -6-18
0.24
28.4 1.10
Pywi lorarmyt-A I issues
EIS 5.73 0.223
Total Sidestre2m Reduction 5.08 0.197
Alternative filter materials 5.96 0.232
16. 0.65
Based on direct and indirect (acimin./szWort
services, charged
on a pro--rata basis).
AUVSC
21 st November, 1990
BATCo document for Province of BritiSh Columbia 25
October 1999