South Australia mounts lawsuit against tobacco companies

South Australia is spearheading a push to recoup billions of dollars spent on caring for sick smokers.

Health Minister John Hill put the proposal to a Ministerial Council meeting in Canberra last Friday and said he had received a positive response.

Mr Hill said Australia was well placed to force tobacco companies to compensate governments for the health costs associated with smoking over many decades.

A similar class action in the US led to the major firms agreeing to the 1997 US Master Settlement Agreement, in which tobacco companies agreed to pay up to $200 billion compensation to states over 30 years.

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