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HONG KONG URBAN COUNCIL
Singapore and Norway have banned sponsorship have done so outright. In 1987 Victoria state in Australia came up with a novel solution that benefitted both the health concerns and the sports and arts bodies by passing a bill to set up a Health Promotion Fund. In its first year in Victoria, the Fund received HK$140 million, to which it has already allocated one third to sports bodies. The Fund has sponsored football, surfing, golf, hockey, netball, cycling, disabled skiing and table tennis. Part of the funding has also been earmarked to sponsor arts activities, medical research and health education. The objective is to change the image of sport as it is presented to the young.
After one year of operation, it has had, in the words of a prominent Australian newspaper a ‘dramatic impact on attitudes to health and smoking in the community.'
4. Victorian Bill (Tobacco Act 1987)
A small 5% levy was placed on wholesale tobacco sales, and this money was transferred into a Trust Fund, administered by an independent statutory body, the 'Health Promotion Fund.' The Board of about 12 prominent people with experience in health, sports, arts and communications is appointed by the Governor in Council, with an Executive staff.
The function of the Board is to allocate this money to various sports, arts and other bodies, especially but not exclusively those which had relied upon tobacco sponsorship. It would be unfair to restrict it to only those who had taken tobacco money in the past. At the same time, those bodies that cannot generate much publicity and therefore cannot attract company sponsorship also benefitted because the decision of the Board is not dependant on the commercial value of the event.
5. Tobacco Money in Origin
In essence, this portion of money still comes from tobacco products, but there are important differences. Now that the immediate influence has disappeared:
1. There is no tobacco advertising at the venue, a particularly important point regarding the influence on smoking among youth.
2. There is no tobacco influence at the venue, for example, courtesy seats for the industry to allocate to influential people disappear.
3. The sports (or arts) bodies are freed from the direct dependency upon the tobacco industry and can speak out more appropriately and responsibly about the incompatability of smoking and healthy, sporty lifestyles. Similar funds have also been set up in the state of South Australia and in the State of California. The British Medical Association has called upon the British government to also follow this example.
6. As Interim Measures: before total ban on tobacco sponsorship
It seems that the tobacco industries is penalized. However, many people suspect the intention of tobacco sponsorship as an alternative form of promotion and to buy political influence. This system would allow the tobacco industry to continue their charitable aspect of sponsorship.
HONG KONG URBAN COUNCIL
281
People also argue that smoking causes enormous damage to both smokers and non-smokers (in the form of loss of parents, medical costs and passive smoking) and therefore tobacco money should be taken out to serve the people as an interim measure to a smoke-free society.
Whilst the fund available for allocation may eventually shrink in the event of dwindling tobacco sales, it is suggested that the damage of the social costs will decrease correspondingly, rendering the government more able to provide more funds for arts and sports.
It should also be recognized that this is an interim measure to a total ban in tobacco sponsorship to give important breathing space for the arts and sports bodies to solicit alternative funding.
7. Hong Kong Situation
Is it possible to introduce this similar system of the Victoria Bill to Hong Kong? There are actually several precedents in Hong Kong for the earmarking of taxation from certain industries for specific purposes. Examples of these, to name but a few, are:
(a) Occupational Safety and Employees' Compensation Assistance Fund;
(b) Traffic Accident Victims' Assistance Fund;
(c) Travel Industry Council Reserve Fund; and
(d) Levy for Trade Development Council
8. Administration Arrangements
When the spirit of the Victorian Bill is translated into Hong Kong scenario, the following administrative arrangements may be adopted:
1. A percentage of AD VALOREM LEVY (e.g. 5%) on tobacco products will be collected from tobacco industry based on their annual sales at wholesale level.
2. The LEVY collected by GOVERNMENT TREASURY on behalf of Inland Revenue Department will then be transferred to a CENTRAL BODY.
3. The central body functions could be serviced by an existing government department as the executive arm. An Advisory Board will be set up composing of government appointed board members to supervise the central body. This structure is similar to the suggestion of setting up a communal fund by the Council For Performing Arts in 1988.
The CENTRAL BODY will then be responsible for allocation of the sponsorship funding to various SPORTS and ARTS or any other appropriate groups.
9. Merit of the Levy System
The scheme as suggested does not require any major additional administrative costs and will provide very strong financial support to sports and arts bodies.
By simple arithmetic, the extent of funding will be as follows:
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280
HONG KONG URBAN COUNCIL
Singapore and Norway have banned sponsorship have done so outright. In 1987 Victoria state in Australia came up with a novel solution that benefitted both the health concerns and the sports and arts bodies by passing a bill to set up a Health Promotion Fund. In its first year in Victoria, the Fund received HK$140 million, to which it has already allocated one third to sports bodies. The Fund has sponsored football, surfing, golf, hockey, netball, cycling, dis- abled skiing and table tennis. Part of the funding has also been earmarked to sponsor arts activities, medical research and health education. The objective is to change the image of sport as it is presented to the young.
After one year of operation, it has had, in the words of a prominent Australian newspaper a ‘dramatic impact on attitudes to health and smoking in the community.'
4. Victorian Bill (Tobacco Act 1987)
A small 5% levy was placed on wholesale tobacco sales, and this money was transferred into a Trust Fund, administered by an independent statutory body, the 'Health Promotion Fund.' The Board of about 12 prominent people with experience in health, sports, arts and communications is appointed by the Governor in Council, with an Executive staff.
The function of the Board is to allocate this money to various sports, arts and other bodies, especially but not exclusively those which had relied upon tobacco sponsorship. It would be unfair to restrict it to only those who had taken tobacco money in the past. At the same time, those bodies that cannot generate much publicity and therefore cannot attract company sponsorship also benefitted because the decision of the Board is not dependant on the com- mercial value of the event.
5. Tobacco Money in Origin
In essence, this portion of money still comes from tobacco products, but there are important differences. Now that the immediate influence has disappeared:
There is no tobacco advertising at the venue, a particularly important point regarding the influence on smoking among youth.
1.
2.
There is no tobacco influence at the venue, for example, courtesy seats for the industry to allocate to influential people disappear.
3.
The sports (or arts) bodies are freed from the direct dependency upon the tobacco industry and can speak out more appropriately and responsibly about the incompatability of smoking and healthy, sporty lifestyles. Similar funds have also been set up in the state of South Australia and in the State of California. The British Medical Association has called upon the British government to also follow this example.
6. As Interim Measures: before total ban on tobacco sponsorship
It seems that the tobacco industries is penalized. However, many people suspect the intention of tobacco sponsorship as an alternative form of promotion and to buy political influence. This system would allow the tobacco industry to continue their charitable aspect of sponsorship.
HONG KONG URBAN COUNCIL
Page 145 of 182
281
People also argue that smoking causes enormous damage to both smokers and non-smokers (in the form of loss of parents, medical costs and passive smoking) and therefore tobacco money should be taken out to serve the people as an interim measure to a smoke-free society.
Whilst the fund available for allocation may eventually shrink in the event of dwindling tobacco sales, it is suggested that the damage of the social costs will decrease correspondingly, rendering the government more able to provide more funds for arts and sports.
It should also be recognized that this is an interim measure to a total ban in tobacco sponsorship to give important breathing space for the arts and sports bodies to solicit alternative funding.
7. Hong Kong Situation
Is it possible to introduce this similar system of the Victoria Bill to Hong Kong? There are actually several precedents in Hong Kong for the earmarking of tax- ation from certain industries for specific purposes. Examples of these, to name but a few, are:
(a) Occupational Safety and Empolyees' Compensation Assistance Fund; (b) Traffic Accident Victims' Assistance Fund; (c) Travel Industry Council Reserve Fund; and (d) Levy for Trade Development Council
8. Administration Arrangements
When the spirit of the Victorian Bill is translated into Hong Kong scenario, the following administrative arrangements may be adopted:
1. A percentage of AD VALOREM LEVY (eg. 5%) on tobacco products will be collected from tobacco industry based on their annual sales at wholesale level.
2.
3.
The LEVY collected by GOVERNMENT TREASURY on behalf of Inland Revenue Department will then be transferred to a CENTRAL BODY.
The central body functions could be serviced by an existing government department as the executive arm. An Advisory Board will be set up com- posing of government appointed board members to supervise the central body. This structure is similar to the suggestion of setting up a communal fund by the Council For Performing Arts in 1988.
The CENTRAL BODY will then be responsible for allocation of the sponsorship funding to various SPORTS and ARTS or any other appro- priate groups.
9. Merit of the Levy System
The scheme as suggested does not require any major additional administrative costs and will provide very strong financial support to sports and arts bodies.
By simple arithmatic, the extent of funding will be as follows:
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