ROTHMANS owner British American Tobacco (BAT) has launched legal challenge to a new European Union directive which, it says, threatens hundreds of North-East jobs.

The company, which maintains operations in Darlington and Peterlee, believes the EU does not have the power to regulate how much tar is in cigarettes, or how they are marketed.

BAT hopes the European Court of Justice will clarify what powers the EU has to regulate the tobacco industry.

Among other things, the directive imposes lower maximum tar levels and limits on nicotine and carbon monoxide contents.

It also prohibits the use of words such as light or mild on packets and calls for health warnings to be increased in size, and to be in more than one language.

All these restrictions would apply to the production of cigarettes in the EU, even if they are being exported to non-EU countries.

It is this restriction on exports that could threaten jobs in the UK including up to 600 jobs if the directive is passed and implemented into UK law.

Martin Broughton, chairman of BAT said: "Legal action is a last resort. We acknowledge the health risks associated with smoking and we support sensible regulations achieved through dialogue.

"However, the EU has gone beyond its powers and bad law doesn't become good law just because it's tobacco law."

The company believes that the EU has no power to make member states harmonise their health policy and it stresses that the European Parliament's committee on legal affairs and the internal market voted against the directive.

Gary Follis, of the Tobacco Workers' Alliance, said: "I think it's unfortunate that it has come to this, but considering that people's jobs are at risk then it's important that all that is possible is done.

"I think it was the role of the European Parliament to take these things into account in the first place and all this could have been avoided."

The majority of the tobacco produced in Darlington is exported outside the EU and there is a fear that if the directive is implemented, there will be no market for the cigarettes produced in the town, and the demand for higher tar cigarettes would be met by other companies.