AAP
The Liberal Party will no longer accept political donations from big tobacco, after an intervention Tony Abbott says is aimed at ending a distracting Labor furphy.
Labor had attempted to again embarrass the coalition over its links to the tobacco industry, with Prime Minister Kevin Rudd pledging to ban donations if his government is re-elected.
But Mr Abbott acted quickly to quash the ALP wedge campaign on Thursday declaring "from this time forward" his party would no longer accept money from the industry.
"I've instructed the Liberal Party to accept no further donations from tobacco companies," Mr Abbott said of his party's about-face.
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"Mr Rudd is going to run a distraction a day ... and I don't want furphies like this to distract people's attentions from the main issues of this campaign."
Labor pledged to amend the Commonwealth Electoral Act to ban donations from cigarette companies, as well as ending tobacco industry investment by public sector super funds.
Following Mr Abbott's backdown on tobacco donations, the government demanded the Liberal Party return $2.1 million given to it in the past 10 years.
Labor stopped taking donations from the tobacco industry in 2004.
The opposition leader said he would gladly refund the money to the tobacco industry, but only if Labor returned money given to it by the disgraced Health Services Union (HSU).
"I think that is a fair deal," he said.
A spokeswoman for British American Tobacco said donations were a matter for political parties, and played down the amount of money given by the company.
"British American Tobacco Australia have not made any political donations to any political party in Australia in the past financial year, and over the last 26 months we have only donated $4700," she said.
Chief of anti-tobacco group ASH Anne Jones welcomed the commitment of both leaders to stamping out donations, but called for a mandatory ban.
"I think he (Mr Abbott) needs to match the prime minister's promise of amending the relevant legislation, because voluntary is always open to interpretation and grey areas," Ms Jones told AAP
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