The proposed restrictions on children's advertising lack a scientific basis and could end up costing Irish broadcasters such as RTÉ, TV3 and TG4 about €20 million, leading food and beverage companies have claimed.

In a submission to the Broadcasting Commission of Ireland (BCI), the companies claim that the restrictions "lack a sound scientific basis and will not ultimately change or improve public health". The companies have expressed concern that the restrictions could end up "demonising" certain product lines.

The submission from Food and Drink Industry Ireland, the umbrella group for hundreds of food and drink firms, claims that domestic broadcasters will lose huge revenue because they will be subject to BCI restrictions but their British rivals will not be.

The group claims large multi-nationals will simply shift their advertising spending to British-based broadcasters that beam their signals into the Republic.

"It could have severe repercussions for domestic broadcasters as any international campaign using celebrities will simply shift its expenditure to 'opt out' channels," it claims.

'Opt out' channels, such as Sky, Nickelodeon and MTV, are able to insert Irish advertising into their normal schedules.

The group put the cost to domestic broadcasters at about €20 million and it even suggests this could lead to a rise in the TV licence fee of €25-€30.

The group, which represents firms such as C&C, Cadburys, Wrigley, Nestlé Cereals and Irish Sugar among others, also warns that restrictions will "act as a barrier to trade in services" because they will prevent advertisers from other EU member-states selling their services to broadcasters in the State.

"Having consulted with the European Commission on the matter, it appears that such restrictions may be in contravention with Article 49 of the Treaty of Rome i.e. freedom of movement of services," says the submission. The group points out that a ban on alcohol advertising in Sweden was recently ruled to be incompatible with the treaty.

The BCI recently published a list of restrictions it hopes to impose on children's advertising later this year. It is in the final phase of consultation and a spokeswoman said recently she did not expect any "major" changes at this stage.

Despite this, Food and Drink Industry Ireland, a division of IBEC, believes urgent changes need to be made. The group is especially concerned about the BCI's definition of a child as someone under 18 years of age. The group describes this as "completely disproportionate".

"Whilst still under the age of 18, a 'child' can drive a car and get married in Ireland, a level of maturity that the BCI completely fails to recognise. Although the draft code does recognise that there is a difference in the level of protection needed by children of different ages, this is not in evidence later on in the code," the submission says.

The group contests the assertion that food and drink advertising leads to childhood obesity. It points to recent research in the UK, which shows that a steep decline in physical activity among children is the real problem.

One of the most controversial elements of the BCI proposals was the idea of banning celebrities from promoting food and drink products during children's programming. The group is strongly against this idea.

"We feel this ban is an unfair, unnecessary and disproportionate restriction on the food and beverage industry. Use of celebrities is a valid communications strategy for all goods and services, including those targeting children," it says.

Food and Drink Industry Ireland says that, once advertisements using celebrities don't suggest that snack or fast foods are a replacement for a meal or fresh produce, they should be permitted.