I (B&W) PROTECTED BY MINNESOTA TOBACCO LITIGATION PROTECTIVE ORDER STATEMENT BY PAUL PARE, CHAIRMAN OF THE CANADIAN TOBACCO MANUFACTURERS COUNCIL - PRESS CONFERENCE, OTTAWA, SEPTEMBER 21, 1971 Gdntlemen - My name is Paul Par(-- . I am chairman of the Canadian Tobacco Manufacturers Council and President of imperial Tobacco Products Limited. Other members of the Council who are present today with me are: Charles Lombard, President, Benson & Hedges Tobacco Co. L. E. Ricard, Vice-President and General Manager, Imperial Tobacco Products Co. Ltd. David Stewart, President, Macdonald Tobacco Inc. Wilmat Tennyson, President, Rothmans of Pall Mall Canada Ltd. The last time I had occasion to speak to you.was on June 10th when the Bill with respect to cigarette advertising, Bill C248, was introduced in parliament. At that time I voiced the Council's disagreement with any legislation and our opposition to many of the specific proposals in the Bill. Our position in that respect has not changed. Also on June loth I said that the date given for implementation of major provisions of the Bill was unrealistic and that numerous proposals needed immediate clarification. 2 (B&W) PROTECTED BY MINNESOTA TOBACCO LITIGATION PROTECTIVE ORDER 2 On the evening of June loth I had the opportunity of a brief telephone conversation with the Minister of National Health and Welfare and reiterated the urgent need for attention to such matters as: a) the future of the outdoor advertising industry; b) the future of Canadian consumer magazines; c) the future of our association with and sponsorship of many cultural and sporting events all of which the Bill placed in jeopardy. Since then three and a half months have gone by and we have had no clarification from the minister or his Department despite contacts with Department officials and many attempts to see-the Minister. a Most distressing is that since June loth this industry has been in a turmoil as a result of Bill C248. Manufacturers are caught in the middle of the bind. Because the Minister has not clarified important proposals the manufacturers have been importuned by their own marketing people, by advertising agencies, by media and by cultural and sporting organizations to tell them what we would be planning to do 1972. In addition Canada's tobacco growers have been equally concerned about the future of their important segment of the agricultural industry in the face of proposals in Bill C248. 3 682125440 (B&W) PROTECTED BY MINNESOTA TOBACCO LITIGATION PROTECTIVE ORDER 3... A recent announcement of possible deferment of the lst of January 1972 implementation deadline is no solution to the chaos which exists in the industry. Faced with these concerns and especially with the urgent need for marketing planning for 1972, the four major Canadian tobacco manufacturers have revised the industry's existing voluntary cigarette advertising code. The revised code will end cigarette advertising on radio and TV on January 1, 1972. A cautionary notice will be printed on all cigarette packages. These packages will be introduced as early as technically feasible which is about April 1972. Our decision to end radio and TV advertising will appreciably reduce industry advertising expenditures in measu--ed media. At the same time the revised code will allow.manufacturers to support major Canadian cultural and sporting events. We consider this is a logical step because we must provide 1972 guidelines for our marketing divisions, our agencies and the adverti sing media. We must also respond to the very real concerns of the tobacco gro, ers. We have attempted to answer to the intent of Bill C248 without placing certain segments of the business, communications and agricultural communities in jeopardy. This action does not imply any chanqe in the industry's basic position on the smoking and-health controversy which is that cigarette smoking has not been demonstrated to be the cause of any disease and that the present indictment is based essentially on statistical information. 4 682125441 (B&W) PROTECTED BY MINNESOTA TOBACCO LITIGATION PROTECTIVE ORDER 4... The revised code brings the Canadian industry into line with the situations existing in the United Kingdom and the United States. 682-125442