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TOBACCO giants have privately threatened to sue the Scottish Government for £500million if they go ahead with plans for plain cigarette packaging.

Phillip Morris, the company behind the Marlboro brand, have not publicly threatened legal action but have told MSPs they will face a huge damages action.

ASH Scotland chief executive Sheila Duffy said yesterday: “The tobacco industry’s threat to launch legal action is predictable but unlikely to succeed.

“Plain packaging does not deprive tobacco companies of their trademarks and branding.

“Instead, it puts reasonable limitations on their use so they can’t be flashily displayed on packaging to increase the appeal of tobacco products to children and hook a new generation into a harmful addiction.” She added: “The tobacco industry’s bullying tactics almost always fail and we believe they will lose again if they challenge plain packaging in Scotland.”

Last week, MSPs unanimously backed a motion that will let any future legislation on plain packaging brought in by the UK Government apply north of the Border too. Holyrood will still be able to introduce the change if Westminster opts not to go ahead with it.

Scottish Public Health Minister Michael Matheson said: “We are determined to see Scotland remain at the forefront of countries committed to bold action to reduce the harm caused by tobacco.

“We would be very confident of defending any legal action from tobacco companies, having done so successfully on every previous occasion that they have taken legal action against the Scottish Government.”

A Philip Morris spokesman said: “With Australia’s government reviewing the effectiveness of plain packaging towards the end of 2014, the Scottish Government should wait for the outcome of that review rather than prejudging it.”