The broadcasting of Formula One motor racing by RTE television and plans contained in a Bill from the Department of Health could bring the two bodies into dispute over tobacco sponsorship in the sport.

The Department, in a new Public Health and Tobacco Bill announced yesterday, claim they would be seeking to use new technology to blank out the names of tobacco products on cars and hoarding during the screening of the races in Ireland. The technology appears to depend on cameras which are sensitive to certain materials and insensitive to others. Theoretically, countries can select which product branding is permissible for their particular legislation.

But such technology is not available, and even if it were RTE would not be permitted to interfere with a host broadcasting signal, said Tim O'Connor, head of television sport in RTE.

"Blank out? We have had no instruction from the Minister on this issue," said O'Connor. "We have received no letter or request from any Government agency or body.

"Also, the technology does not exist, and if it did it would be in breech of our contract because we cannot interfere with the signal for obvious reasons. There is a caveat in virtually every contract which says we cannot interfere with the host broadcasting signal."

Yesterday a Department of Health official claimed it was their understanding the technology did exist to selectively remove offending material and they were seeking to enact legislation which would permit them to do so.

"We've been advised that the technology is available to block advertising. This will be dealt with in the new Bill announced yesterday. We've been advised that the technology is available and that it is used in other countries," the spokesman added.

The issue of product placement, particularly in sport and specifically in Formula One, which is heavily branded with tobacco products, has been running for years.

In 1998, Dr Fenton Howell, chairman of ASH (Action on Smoking and Health) complained about the programme Grand Prix Formula 1 shown that May 26th, 1998 to the Broadcasting Complaints Commission (BCC).

The broad sweep of his complaint was that the visibility of tobacco branding was enormous and contrary to law, tobacco companies were effectively advertising their products. He said: "RTE has shown a disregard for both the letter and spirit of the laws in this country with respect to tobacco advertisements."

The BCC did not uphold the complaint, stating "there was insufficient legal basis". It added: "If such direct or incidental advertising is to be prohibited, then it is the responsibility of the appropriate Government Minister to introduce legislation or regulation with this specific purpose in mind."

The nub of the issue was that in the RTE code the word advertisement "denotes any item of publicity inserted in the programme broadcast by RTE in consideration of payment made by that body". In their submission, RTE claimed there had been no payment to them by any tobacco company or agent of a tobacco company and argued the coverage of Formula One was part of its public service remit.

"We just cover the event," says O'Connor. "The essence of pictures from a Budweiser Derby or a Benson and Hedges Masters is the sport. People plug into the Derby to see horses, not beer. We are not advertising. The audience is able to make the distinction between advertising and sport. We've an educated audience who are interested in the essence of it, not the periphery of it."

O'Connor also pointed out if RTE did not broadcast the Grands Prix people would simply watch it with one of their competitors, notably UTV. The first race of the Formula One season takes place in Melbourne this weekend.

ASH not only welcomed the initiative by the Department of Health but yesterday urged even stronger measures to be taken against RTE.

"We welcome the move. But we don't think it is sufficient," said Dr Howell. "RTE should take a principled argument and not broadcast Formula One. RTE is a semi-state body and the national broadcaster. You have a situation now where we have a policy of trying to move towards a tobaccofree state, and an arm of that state is thumbing their nose at the Department of Health and Children."

Direct advertising in electronic media has been prohibited in Ireland for some time, while sponsorship of events by tobacco companies was banned last year.