Japan Tobacco Falls as Government Considers Public Smoking Ban

Source from:  Bloomberg 03/25/2009

Japan Tobacco Inc., the world's third-largest publicly traded cigarette maker, fell the most in three weeks in Tokyo trading after the nation's health ministry said it was considering public smoking bans. The maker of Camel and Mild Seven cigarettes, which is 50 percent government owned, fell as much as 3.8 percent to 235,700 yen, the most since March 2, and traded 2.2 percent lower at 239,600 as of 12:33 p.m. Japan's health ministry is considering smoking bans in designated public areas and will announce a policy this year, spokeswoman Kana Takahashi said by phone today, declining to provide more details. Public broadcaster NHK earlier reported the health ministry may ban smoking in hospitals, schools and government offices. "Most public facilities in Japan, like hospitals, public transport and schools, have their own smoking bans already so a government decision won't make much difference," Tokushi Yamasaki, a Tokyo-based analyst at Daiwa Institute of Research, said. "Still, any moves by the government to increase restrictions on smoking are negative for Japan Tobacco." Restaurants and hotels will be exempt from an outright ban, NHK said. The ministry will advise local governments where the bans should apply by May at the earliest, Takahashi said. Tokyo-based Japan Tobacco was invited by the health ministry to discuss measures to reduce second-hand smoke in November, spokesman Ryohei Sugata said. Japan Tobacco supported designated smoking areas in hospitals and schools where possible, rather than outright smoking bans, he said. Fewer Smokers Owners of restaurants and hotels should be allowed to make their own decisions on whether to allow smoking or create designated smoking areas, he said. The percentage of Japanese men who smoke has fallen by about half during the past 40 years to 40 percent because of an increase in health consciousness. In 2002, Tokyo's Chiyoda ward became the nation's first local government to introduce a ban on smoking in public areas covering about one-third of the ward. In December, the government abandoned a plan to raise tobacco taxes after opposition from some lawmakers and a campaign by Japan Tobacco, which argued it would destroy the nation's tobacco industry. Enditem