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Tobacco manufacturers are celebrating the reprieve granted to them last week by the European Court of Justice's (ECJ) decision to rule against the proposed Europewide ban on cigarette advertising.

But their joy could be short-lived, at least here in the UK. Despite renewed calls from the manufacturers for voluntary policing, the government announced immediately that legislation to outlaw tobacco ads and sports sponsorship remains firmly on the agenda.

The latest ruling, which hinged on a legal technicality, is another twist to the lon-running saga in banning tobacco's right to advertise. Tobacco firms argued that the EU was pushing the directive as a health measure, rather than one focused on internal market reform and as such was overreaching its powers. And the ECJ agreed. Under the original European Union Directive, passed in July 1998, EU member states were given until 30 July 2001 to implement the ban. Press advertising was to be given an additional year, with sponsored events given until 2003.

Global events including Formula One were allowed until 1 October 2006.

Gallaher and British American Tobacco are involved in the sport through their backing of the Jordan and British American Racing teams respectively.

However, the annulment of the directive is unlikely to have any long-term impact on the sport: tobacco sponsorship is already prohibited in Belgium, France and Italy. World motor sport governing body the Federation Internationale de l'Automobile has vowed to have a global ban on tobacco ads and sponsorship in international motor sport from the end of 2006, when the World Health Organisation's International Framework Convention on Tobacco Control is implemented.

Negotiations on this begin on October 16 in Geneva, where the EU and its member states will participate in creating a binding convention to lay down agreed strategies for tobacco control.

The initial challenge to the directive came from the German government, which argued that it unfairly restricted tobacco firms' rights. UK firms Gallaher, Imperial, BAT and Rothmans (subsequently merged), which spend a combined pounds 14m on UK ads, then argued that it was legally invalid and infringed commercial freedom of speech. They finally emerged victorious, with the House of Lords still to rule on the case. This was against the backdrop of a Commons committee report earlier this year which concluded that tobacco manufacturers' agencies had used their creative expertise to undermine government policy.

The firms remain reluctant to comment on the implications of the ECJ ruling for their advertising and marketing strategies. An Imperial Tobacco spokesman says the firm offered two years ago to voluntarily withdraw from press and poster ads if it could continue with personal communications to adult smokers.

'We want to see this manifesto commitment met without resorting to primary legislation, and we wait to see whether direct marketing at least will be excluded from the government's future actions on tobacco ads. After all, it recommended to the EU that it should be left out of the original directive,' he says.

Trade body the Tobacco Manufacturers' Association mirrors that stance.

Its chief executive David Swan says simply that the ECJ has vindicated the TMA's approach.

Meanwhile, Gallaher's head of corporate affairs Ian Birks adds that the ECJ verdict came as no surprise, and that it is now time for the government to listen to its arguments for the voluntary policing of the industry's advertising.

But that view is at odds with the stated intention of the Labour government, which observers say is being driven as much by the political implications of upholding a manifesto commitment as it is by its commitment to public health policy. Add to that the recent revival of the furore over F1 supremo Bernie Ecclestone's planned donations to Labour Party coffers, and the need for the government to take a bold line on the tobacco advertising issue becomes clearer.

'Tobacco advertising promotes a deadly habit and those brands that are advertised the most are smoked the most, especially by children,' says Public Health Minister Yvette Cooper.

The long legislative haul is far from over. Its outcome will be instrumental in the success of the tobacco firms' marketing strategies for years to come.

TOBACCO ADVERTISING EXPENDITURE

Brand              Market  Manufacturer   Ad spend       Agency

                   Share                  (Sep99-Aug00)

                   1999                   pounds

Lambert & Butler   13.5%   Imperial       5,499,187      Mustoe Merriman

                                                         Herring Levy

Benson & Hedges    11.3%   Gallaher       3,111,040      CDP

Mayfair            6.4%    Imperial

Regal              5.3%    Imperial

Silk Cut           5.2%    Gallaher

Superkings         5.1%    Gallaher

Rothmans Royals    4.8%    BAT/Rothmans   5,068,147      Tequila Payne

                                                         Stracey

Source: Tobacco Manufacturers'' Association