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Time to butt out illegal cigarettes

Stoney Creek News

December 12, 2008

Editorial

Since coming to power, Premier Dalton McGuinty and the Liberals have taken huge strides to tackle the dangers associated with tobacco use in this province.

Under the Smoke Free Ontario Act that became law in 2006, the province now has some of the most restrictive measures in North America. These include:

• Prohibiting smoking in all enclosed workplaces and enclosed public places in Ontario; and

• Elimination of the display of tobacco products in retail stores as of May 31, 2008.

The government has also spent millions of dollars on education, support, prevention and cessation programs.

The aim of these measures was to improve the overall health of all Ontario residents as well as attempt to reduce the health costs associated with smoking-related diseases, which cost the economy at least $1.7 billion in health care annually, resulting in more than $2.6 billion in productivity losses and accounting for at least 500,000 hospital days each year.

But while the Ontario government may be winning the war on legal tobacco products, they are failing miserably to address the increase in the sale of contraband and illegal cigarettes. The majority of these products are produced or sold on First Nations reserves.

This week, Jim McCarter, provincial auditor general, revealed the province is failing to collect more than $500 million in taxes from the sale of illegal cigarettes. In his annual report, Mr. McCarter said the province needs to do a better job collecting

tobacco taxes, and in doing so, could help address the $500 million provincial deficit Finance Minister Dwight Duncan predicted in his October economic statement.

In his report released Monday, Mr. McCarter urged the premier to work with the RCMP and Canada Border Service Agency to get a handle on illegal cigarettes. He also suggested the province needs to take a tougher position on the explosion of smoke shacks and cigarette manufacturers popping up on First Nations reserves.

Currently in Ontario, there are 16 major cigarette manufacturers operating on First Nations reserves. Only one has a license to do so.

McGuinty’s war on tobacco needs to move beyond the legal operations and take aim at these illegal manufacturers. It’s time for the premier to stop acting tough in the battle against tobacco use, and use some real muscle to tackle the underground industry.

However, the premier has routinely passed the buck of responsibility for illegal smuggling and production of tobacco to the federal level. He’s a tough guy when it comes to standing up to legitimate businesses, but has been cowardly when faced with the prospect of taking on criminals operating under protection of the First Nations community. By raising taxes and making rules tougher for legitimate producers and retailers, the Liberal government has wittingly propped up the criminal purveyors of illegal tobacco.

While the government seems unwilling to take a stand against the sale and production of illegal tobacco on First Nations reserves, you’d think at the very least they would be establishing a defensive perimeter on smoke shacks operating on non-native land. On Hwy. 6 between Caledonia and Hagersville, no less than a half a dozen smoke shops operate with no fear of enforcement.

Police claim they lack the manpower and resources to shut down these illegal distributors. We believe they lack the mandate and will to take on the illegal cigarette trade due to the political sensitivities associated with any police presence on First Nations land.

The RCMP has identified nearly 30 illegal cigarette manufacturing plants operating on three native reserves between Six Nations and Montreal. Seven of the unlicensed cigarette manufacturers are operating at Six Nations, one of Canada's main hubs in the contraband tobacco trade.

Six Nations police don't lay charges related to illegal cigarette manufacturing because it's viewed as a taxation issue, not a policing issue.

The government’s war on tobacco, with all its good intentions, seems to be falling apart like a cigarette ash.