THE jobs of hundreds of cigarette workers in the North-East are in the balance after the European Union decided to introduce a ban on the export of high tar cigarettes outside Europe.

Workers at Rothmans, Darlington, had been hoping that the EU would not ban the production of high tar cigarettes for consumption in countries outside the European Union.

But the European Council of Ministers has decided to implement the ban from 2005, with 2007 the deadline for its implementation by EU member states.

The Government warmly welcomed the decision but unions claimed the ruling would push companies such as Rothmans out of the European Union, looking to ply their trade elsewhere.

Tom Roberts, a spokesman for British American Tobacco, which owns Rothmans, said: "The Council of Ministers has decided to implement the directive on tar levels from January 1, 2005. However, member states can get an extension to January 1, 2007.

"This is an extremely disappointing decision. We need time to consider the directive in full and its implications for workers at the Rothmans site in Darlington."

He added: "This is a regrettable decision that could lead to job losses, but we are still trying to get clarity before we make any decisions on the future of cigarette production in this country."

Gerry Hunter, of the AEEU, said Rothmans in Darlington, with Health Secretary Alan Milburn as its MP, would probably get the extension to 2007, giving it six years to "change the habits of the people who have more than 10mg of tar" if it was to stay open.

But he added: "Obviously, we are all disappointed, myself in particular, because we have suffered enough job threats and I think it's an unfair dictat for the European Commission.

"Throughout Europe, countries can still export arms. They kill people - but there doesn't seem to be the veto that you can't sell a gun above a certain calibre."

He said there was a high concentration of high tar smokers in the Third World and Asian countries, and companies like Rothmans would move there if the trade was hampered by such laws.

But Mr Milburn described the extended time-scale as a "sensible compromise" which would allow Rothmans more time to adjust to low tar production. "That has got to be good news for jobs in Darlington and good news for public health, too," he said.

Darlington Borough Council leader John Williams, joined Mr Milburn for a meeting in London with trade union leaders last week.

"This delay in the implementation of the EU directive is an extremely pleasing and productive outcome from that meeting," he said. The news came as BAT revealed its profits had gone up 11 per cent, boosted by the full integration of the Rothmans business it acquired nearly two years ago.

BAT, which also owns the Lucky Strike, Kent and Dunhill brands, recorded a pre-tax profit of £1.5bn in the year to December 31, up from £1.4bn the year before.

BAT said the consolidation of the Rothmans business into a full-year of its results, rather than just seven months in 1999, helped push operating profit for the year up by 27 per cent before exceptional items, to £2.6bn.

The group managed to save £230m last year as a result of a series of rationalisation programmes put in place after the merger, which led to the closure of the Rothmans plant at Spennymoor