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First Nations should start taxing tobacco products


Doug Cuthand
The StarPhoenix
Friday, July 11, 2008

This week the Assembly of First Nations will hold its annual assembly in Quebec City.

This is the organization's 29th annual general assembly. It seems like only yesterday when the first assembly was held in Penticton, B.C., and David Ahenakew was elected as the first national chief.

The Assembly of First Nations evolved from the National Indian Brotherhood. It was a national organization whose membership were the provincial and territorial organizations. During the late 1970s and early '80s, when the movement for Indian government gained momentum, it became apparent that a national association of First Nations was more representative.

The change worked and today the AFN is a powerful voice for First Nations people.

The election for national chief will take place next year. The constitution only allows the national chief to hold office for two terms, so Phil Fontaine will not be able to seek re-election. This is the chance for the wannabes to test the waters and get noticed.

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Good news for the chief and council of the Kitchenuhmaykoosib First Nation in northwest Ontario. The chief and several councillors and supporters received six-month sentences for protesting the mining and exploration on their traditional lands.

The Ontario Court of Appeal ruled that the sentences were too harsh and reduced their sentences to time served.

In their ruling, the panel of three judges stated "that the court found it necessary to imprison the (protesters) simply serves to emphasize the gulf between the dominant culture's sense of justice and this First Nation's sense of justice."

These protesters were the duly elected leaders of their First Nation and Coun. Cecilia Begg was both the head councillor and a grandmother.

The case raised the ire of First Nations people and their supporters across the country. Here was a group of people who was protesting against the intrusion of mining companies into its traditional land. Its members were negotiating treaty land entitlement, but the way things stood they would not stand to gain the full value of the land because the exploration companies were claiming the land with mineral potential.

And it wasn't cheap minerals they were after. The area was proving to have reserves of platinum, which is a valuable and useful commodity today.

In any event the court of appeal did the right thing and recognized that people have a right to defend their homeland and protect their future generations.

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Meanwhile, back home, the Saskatchewan Coalition for Tobacco Reduction is urging First Nations stores to boost the on-reserve tobacco prices.

First Nations people are now tax exempt for items sold on a reserve. The stores have to pay the provincial tax when they purchase the tobacco products and later they apply for a tax rebate based on the sales to persons with treaty status.

This creates a cash flow issue for some of the smaller stores but if it is properly managed it is doable.

However, the First Nations have the right and the means to apply their own taxes on products sold on reserves. This would be a positive step on two fronts: First, it would provide the band with a revenue stream and, second, by increasing the price, it would act as a deterrent to smokers.

Past experience has shown that when the prices go up people tend to quit or smoke less. We need to lower the First Nations smoking rates because it is now twice the national average and climbing. While other groups are smoking less our rate is growing along with our young population.

First Nations leaders argue that it is a decision for local communities. It's regarded as a business decision that falls within the sovereignty of each First Nation. This is correct from a First Nation's perspective but our leaders have a greater responsibility aside from short-term gain.

They also have the responsibility for the well being of their membership and that includes the community's health. Tobacco has been proven to be a major health hazard and our people seem to be the last ones to catch on.

Also we are not operating in a vacuum. When our people end up in the cancer ward they are accessing the publicly funded health-care system. It then becomes a problem for the whole province.

We can't continue to bury our head in the sand and continue to allow our people access to cheap cigarettes. In the long run we will pay a terrible price.