Industry News
News for 5th April 2006
European Commission Issues Tobacco Warnings
The, European Commission, the executive body of the European Union has issued formal warnings to the Czech Republic, Italy, Hungary and Spain for non-compliance with its tobacco advertising Directive and gave them two months to resolve their legislation loopholes in order to ban tobacco advertising in the print media, radio and internet. The warnings have implications for the tobacco sponsorship of motorsport events including Formula One races in those countries.
Markos Kyprianou, EU Commissioner for Health and Consumer Protection said, "The tobacco advertising Directive is one of the cornerstones of our fight against tobacco and I urge Member States to apply it properly. Stopping the glamorisation of tobacco through advertising and sponsorship is a key aspect in reducing the number of people who smoke or start to smoke. I will not hesitate to take steps to ensure that the tobacco advertising Directive is fully and properly applied."
The Tobacco Advertising Directive 2003/33/EC bans tobacco advertising in print media, on radio and over the internet and also prohibits tobacco sponsorship of cross-border events or activities. It applies only to advertising and sponsorship with a cross-border dimension. The Directive was agreed by the European Parliament and Council in 2003 and became national legislation on 31July 2005.
During the process of checking the details of the laws communicated by EU Member States, the Commission noted particular compliance problems with the sponsorship ban.
Spain has a transitional provision whereby the ban on advertising and sponsorship in motor racing events does not apply until 3 years after the entry into force of the Spanish law.
Italy does not apply the sponsorship ban to events that take place exclusively on the territory of Italy. However, according to the Directive, the sponsorship ban must apply to all events with cross-border effects (for example events transmitted to other Member States by television or internet) such as motor sport events.
Hungary allows an exemption from the ban on tobacco advertising under special circumstances, which related to economically important events for Hungary.
The Czech Republic grants a general three-year derogation for contracts signed before the legislation came into effect.
Infringement procedures against Germany and Luxembourg for failing to communicate the national measures taken to implement the Tobacco Advertising Directive are also ongoing.
The Czech Republic, Italy, Hungary and Spain now have two months to reply to the letter of formal notice, and to bring their legislation into line with the Tobacco Advertising Directive. Failure to do so could lead to the member states being referred to the European Court of Justice.
Commonwealth Games Hits Grand Prix Attendance
A fall in the attendance at last weekend’s Formula One Australian Grand Prix in Melbourne has been blamed on the proximity of the event to the Commonwealth Games that were held in the city two weeks before.
According to figures published on Sunday the total attendance for the four days of the Formula One race meeting was 301,800, about 67,000 down on the 2005 total of 360,900.
Victoria State Premier Steve Bracks said, "I think you've got to look at it in context. Over the last two weeks, with the Commonwealth Games, AFL football and the Formula One Grand Prix, we've seen something like 2 million tickets sold to major events in this state. Nowhere else in Australia could have that sort of success."
Australian Grand Prix Corporation chairman Ron Walker said, "We are disappointed but you can't have your cake and eat it too. I think we did very, very well… to put on this great show."
Hill Nominated for BRDC Presidency
Damon Hill, the 1996 FIA Formula One World Drivers Champion, has emerged as a leading contender for the presidency of the British Racing Drivers Club, which owns the Silverstone race circuit near Northampton at which the F1 British Grand Prix is held.
Hill was nominated by Mike Knight and Jackie Oliver, two present members of the BRDC Board, to succeed Sir Jackie Stewart as President of the Club, following Stewarts decision not to seek re-election at the Club’s AGM on April 28.
Stuart Rolt, Chairman of the Board said, "The democratic decision on electing a President lies with our membership but I have no doubt that there will be popular support within the Club for Damon to succeed Sir Jackie As a Formula 1 World Champion himself, he will take on the prestige that exists in the position of President of the BRDC as an ambassador for UK motorsport.
"Damon will also symbolise the passing on of the Presidency to a younger generation which will send out an encouraging message to our newer and younger members who must take up the reigns of leadership of the Club in the future."
Stewart said, "I hope the Members give Damon their full support in working with the Board in the best interests of the Club. Damon, like his father Graham, is a shining example of excellence from a family absolutely steeped in motor racing. I wish him all success in the future."
Toyota F1 Team Suspends Technical Director
The Cologne, Germany based Toyota Motorsport Formula One team has confirmed that is has suspended its technical director Mike Gascoyne.
A statement issue by the team said, "Due to a fundamental difference of opinion with regard to the technical operations of its Formula One team, Toyota Motorsport has suspended its Technical Director Chassis, Mike Gascoyne, until further notice.”
British born Gascoyne joined Toyota from Renault in October 2003 having previously worked with the Jordan, Tyrrell, Sauber and McLaren F1 teams.
CVC Acquires F1 Hospitality and Advertising Companies
CVC Capital Partners, the private equity company that recently completed its purchase of SLEC, the Formula One holding company, has now also acquired the companies that control and manage hospitality and trackside advertising and sponsorship at Formula One events.
Allsport Management and carried out by the Allsopp, Park & Marsh group were bought by subsidiaries of Alpha Prema – the new holding company for the F1 Group set up by CVC. Patrick McNally the founder of Allsport will join the Alpha board and continue as Allsport’s CEO.
US Investment Bank to Buy Stake in New F1 Company
Lehman Brothers, the American investment bank which last week sold its 14 per cent stake in the Formula One holding company SLEC to CVC Capital Partners is to buy a stake in the Alpha Prema the new holding company for the F1 Group set up by CVC.
Lehman Brothers is the only one of the three banks that previously owned stakes in SLEC to take up an option to reinvest in Alpha Prema. CVC bought out the group's other major shareholders, Bayerische Landesbank of Germany and JP Morgan of the USA in 2005.
European Commission urges laggard EU Member States to implement biofuels directive
The European Commission has decided to send a ‘reasoned opinion’ to Finland and a letter of formal notice to Denmark, as the two countries have still not given adequate reasons for having set targets considerably lower than the 2% reference value laid down by the biofuels directive for 2005. A letter of formal notice has also been sent to Luxemburg due to an incomplete biofuel report for 2005, and a reasoned opinion to Italy due to its failure to submit it.
Promoting the use of biofules figures is a top priority in the Commission’s new Green Paper on a European Strategy for a Sustainable, Competitive and Secure Energy Policy.
“Biofuels are the only known substitute for fossil fuels in transport today. They contribute to our security of energy supply, reduce greenhouse gas emissions and create jobs in rural areas. Most Member States are going to great lengths to increase the use of biofuels and I regret that a small number of them have yet to join in on this effort,” said Energy Commissioner Andris Piebalgs.
BVRLA condemns London Low Emission Zone proposal
John Lewis, Director General of the British Vehicle Leasing & Rental Association said in a news release issued yesterday, “We’re in favour of reducing emissions from trucks – witness our support for the truck Euro IV standard and we’re fully behind efforts to clean up the air for Londoners. What we’re not in favour of is an over-bureaucratic, expensive penalty system to keep some trucks out of London. It seems to us that the proposals from Transport for London (TfL) are aimed more at penalising the polluting truck rather than encouraging truck operators to use the latest green technology.”
The concept of nominating the whole of the Greater London Area (GLA) as a Low Emission Zone strikes the BVRLA as impractical to enforce unless automatic number plate recognition (ANPR) cameras are situated at every point. And the organisation believes that would be a gross waste of taxpayers’ money.
Given the incremental pollution reduction targets CV manufacturers are required to meet across the EU, Mr Lewis argues that the LEZ will only accelerate what is planned to happen with the normal vehicle replacement cycle of 4-5 years.
Transport for London has issued a consultation document on creating a Low Emission Zone covering all 33 London Boroughs. All vehicles over 3.5 tonnes would have to comply with Euro III from 2008 and Euro IV by 2010 or pay a charge to travel in the LEZ. Non-compliant vehicles caught in the zone without paying will face a heavy fine. The zone will operate 24/7.
The BVRLA has joined with other bodies including the Freight Transport Association, Confederation of British Industry and the Road Haulage Association to form a lobby group intent on ensuring that the LEZ, if actually introduced, can operate efficiently, be enforced reasonably and work at marginal cost.
