By By Sidhartha Banerjee, The Canadian Press
MONTREAL - The Canadian government says it's ratcheting up efforts to combat contraband smokes _ and, by extension, organized crime groups _ with a new dedicated police unit.
The feds announced a series of initiatives Friday on the heels of a tongue-lashing from advocacy groups who accused them of complacency on the issue.
Those new measures include creating an RCMP-led unit dedicated strictly to fighting contraband tobacco.
RCMP intelligence suggests 175 organized crime groups have their hand in the illegal cigarette trade, and about three-quarters of these groups are also involved in other illicit activity like drug trafficking.
``We know that the illegal tobacco business is evolving (from what used to be) sporadic smuggling activities to what has now become dominated by sophisticated organized crime groups who subsequently re-invest their profits . . . into drugs, firearms and other illegal activities,'' Public Safety Minister Vic Toews.
``So disrupting these networks is vitally important.''
The government will contribute about $7 million over three years to the multi-agency group which will be based in Cornwall, Ont., and will focus its efforts in Ontario and Quebec.
The Canada Border Services Agency is also establishing a sniffer-dog service that will focus on tobacco at ports in Montreal and Vancouver, areas that have the highest contraband activity.
There will also be a federal advertising campaign to raise awareness of the impact of buying illegal smokes.
Reaction to Friday's announcement was mixed. Organizations representing store owners were pleased, while non-smokers' rights groups said the government wasn't doing enough.
``(I'm) very disappointed and I think the measures that were announced were very weak,'' said Francois Damphousse of the Non-Smokers' Rights Association.
``I don't think we see anything in there that would address the source of the illicit contraband located in Quebec and Ontario.''
Damphousse would have wanted to make things more difficult for contraband manufacturers operating on native reserves. He wants it to be illegal for companies off-reserve to supply those manufacturers with cigarette-making materials - such as tobacco, filters, and rolling paper.
He also expressed bafflement at the new police unit, saying the RCMP and other forces are already supposed to be stamping out illegal tobacco.
But the RCMP explained that, currently, officers take part in a variety of investigations. The new team, which will be formed within a year, will only deal with illegal smokes.
The Canadian Convenience Stores Association said it was pleased.
``It's an acknowledgment that, at the moment, it is a serious problem,'' said Michel Gadbois, senior vice-president of the CCSA, who was at the federal announcement.
Earlier this week, the federal government was given a thumbs-down for its efforts by the National Coalition Against Contraband Tobacco, a watchdog group made up largely of retail organizations.
The advocacy group said the government had failed to keep illegal cigarettes out of the hands of youth and failed to educate people about the impact of the illicit tobacco trade.
Revenue Minister Keith Ashfield said the advertising campaign this fall would be targeting young people in Ontario and Quebec.
``Messages will be geared specifically towards young people in these provinces who are particularly vulnerable,'' Ashfield said.
The numbers show that police are, however, seizing more and more of the illegal smokes.
According to 2009 RCMP statistics, 975,000 cartons of illegal cigarettes were seized across the country, up slightly from 965,000 cartons in 2008.
The anti-contraband coalition said that the illegal smokes trade, which makes up about a third of the Canadian tobacco market, costs about $2.4 billion a year in lost taxes.
Friday's announcements come from $20 million set aside to combat contraband _ money from a $1.15 billion settlement with two major Canadian tobacco companies in July 2008 over smuggling.
The initiatives are in addition to a task force on illegal smokes created in May 2008, and a recent agreement with the U.S. to keep a closer watch on shared waterways.
(Note: This story is a corrected version of an item originally filed May 28. The original story incorrectly said the Non-Smokers' Rights Association wanted RCMP to seize contraband tobacco on native reserves. That reference has been removed.)