Link to Original Story

Feds fail to snuff illegal smokes: watchdog

Wed May 26, 11:28 AM

By The Canadian Press

OTTAWA - A watchdog group is giving the federal government failing grades in its efforts to snuff out the trade in illegal smokes.

The National Coalition Against Contraband Tobacco says illegal cigarettes are pouring into Canada and the feds aren't doing enough to stem the flow.

Coalition spokesman Gary Grant, a retired Toronto cop, says Ottawa gets a D grade overall for its efforts.

He says the government rates an F for failing to keep illegal smokes out of the hands of children, and an F for failing to educate the public about the dangers of the contraband trade.

He says cigarette smuggling finances organized crime, which uses the profits to move drugs, guns and even people across the border.

The smuggling costs the country more than $2.4 billion a year in lost taxes, he says.

Grant says the real worry is youngsters.

"Our young people, kids who shouldn't be smoking at all, are having no trouble getting their hands on illegal cigarettes," he said Wednesday.

"They are increasingly the target of the criminal thugs at the end of the contraband tobacco distribution chain and the federal government is simply not doing enough to stop this problem."

He says the feds should put more money into the fight, increase policing along the border and act to shut down illegal manufacturers.

Caroline St. Jacques of the Federation of Quebec Chambers of Commerce, endorsed Grant's comments, saying illegal cigarettes now make up a third of the Canadian market.

Almost half the cigarettes smoked in Ontario are contraband. The figure for Quebec is 40 per cent.

In addition to lost taxes, the smuggling is hurting neighbourhood convenience stores that rely on cigarette sales.

"We demand two things of Ottawa," she said. "To put an end to the undue competition from illegal producers and sellers, and intervene actively in the fight against smuggling."