Controversy over smuggling inquiry

Jason Beattie,The Scotsman, 26 May 2003

Downing Street denied yesterday the government had buried a controversial inquiry into allegations the tobacco industry had encouraged smuggling.

The Department of Trade and Industry investigation was ordered more than a year ago following strongly denied accusations that British American Tobacco (BAT) may have "profited from bootlegging" and had "deliberately stimulated" the smuggling market.

Anti-smoking groups and MPs have expressed concern about the length of time the investigation is taking and questions are now being asked whether Tony Blair directly intervened in the inquiry because of his links with Alain Dominique Perrin, a wealthy French businessman whose company, Richemont, is a major shareholder in BAT.

Mr Blair and his family stayed last year in a chateau in south-west France as the guest of Mr Perrin. The billionaire has since been a guest of the Prime Minister at Chequers.

Although the meetings were reported to have been entirely social, opposition MPs have questioned Mr Blair’s judgment in accepting hospitality from someone closely involved in the tobacco industry.

A Downing Street spokesman said that Mr Blair and Mr Perrin "had met during a private summer holiday and the contact was social". The spokesman said: "The DTI is handling the inquiry in the usual way."

BAT has always denied any involvement or connection with cigarette smuggling.