Pubdate: Thu, 18 Sep 1997 Source: Reuter Gingrich says smokers should pay for tobacco pact By Joan Gralla NEW YORK (Reuter) House Speaker Newt Gingrich Wednesday laid out his criteria for a tobacco settlement, raising the prospect of further changes to the proposed plan and dealing a blow to tobacco firms that wanted it to go ahead. Gingrich, who spoke to reporters after touring the New York Public Library in midtown Manhattan, said he would push to ensure that smokers bore the cost of a tobacco settlement in the form of higher cigarette prices, though he offered no details. He added that the original pact should be expanded to curb young people from using drugs and alcohol as well as cigarettes. The speaker also said President Clinton was right not to rush into such a complex issue. Clinton, who since June has been reviewing the original plan, earlier called for sweeping changes, including industry penalties of up to $1.50 per pack if teenage smoking did not fall sharply over 10 years. Price hikes might make cigarettes too costly for teenagers. Gingrich warned that realistic projections would have to be used to avoid the risk that income taxes which also are paid by nonsmokers might have to be raised to make up any shortfall. Under the original plan, tobacco companies agreed to pay $368.5 billion to settle smokingrelated lawsuits brought by individuals and states, who want to recover the health care costs of treating smokers. The firms agreed to curb their advertising and marketing drastically and pay cash penalities if they failed to meet goals for reducing youth smoking. ``That is not a tax increase, that is money that is paid by the cigarette companies based on the price of cigarettes, and what I don't want to have happen is to set up a structure, have them come in way under their expectation, and then turn around and say, well, let's raise your income tax to bail out a program we designed wrong,'' Gingrich said. While he did not offer any specifics, he said a settlement also should try to slash drinking and drug use by children. ``We have to have a comprehensive indicator of health that looks also at alcohol use and hard drugs. We want to make sure that we're not setting up a narrowly focused approach where they don't smoke but, by the way, they do cocaine.'' Gingrich also said he wanted to keep lawyers who represented the states that sued tobacco companies from getting billions of dollars as their share of a national settlement. ``It seems to me that's the children's money and ought to be used for children's health,'' he said, recommending that Congress review the lawyers' contracts, billable hours and expenses. Separately, Vice President Al Gore said Wednesday night that Clinton's sweeping proposals on tobacco showed he will ``draw the line'' in order to protect children's health. Addressing a $10,000percouple fundraising dinner in New York, Gore said the president's proposal to raise cigarette prices by $1.50 a pack over 10 years would help keep teenagers from smoking. ``Where do you draw the line? With the children,'' Gore told about 25 couples at the dinner. ``Add $1.50 to the price of each pack of cigarettes and make them so expensive they can't buy them.''