Another Example Of Judicial Bias By Politcos

Why won't the government admit that the indians are behind the illicit cigarette traffic? If smoking is such a curse and health hazard why don't the federal and provincial governments shutdown the cigarette operations on the reserves? I gon't give a damn about cigarette company profits but the hyprocricy of the nicotine nazis pisses me off.

Nearly 25% of cigarettes sold in province illegal

Andrew Seymour

The Ottawa Citizen

Sunday, October 15, 2006

Nearly one in four cigarettes smoked in Ontario and Quebec is illegal, according to a new study by Canada's largest tobacco company.

Illicit cigarettes make up 23.5 per cent of sales in Ontario and 22 per cent of sales in Quebec and are costing federal and provincial governments $1.5 billion dollars a year in lost taxes, the survey of 2,300 adult smokers across Canada commissioned by Imperial Tobacco found.

High taxes and not enough enforcement of the laws related to cigarette manufacturing and taxation are

fuelling the illicit sales, Imperial Tobacco president and CEO Benjamin Kemball said yesterday at a conference of Quebec retailers in Gatineau.

But Ontario Minister of Health Promotion Jim Watson disputed the tobacco company's findings.

"There's no question there continues to be challenges with respect to illegal activity and smuggling, but the fact of the matter is ... there are fewer people smoking," said Mr. Watson, the MPP for Ottawa West-Nepean, who questioned the study's methodology.

"I don't put a lot of faith in the integrity and honesty of statements that come out of big tobacco," he said.

According to Imperial Tobacco's estimates, 75 per cent of the decline in legal sales has been transferred to the illicit market.

The company estimates the average decline in tobacco use is two per cent a year, considerably lower than the 18-per-cent reduction recently announced by Health Canada and the Ontario government.

The survey by Gfk Research Dynamics involved contacting smokers over the age of 19 who smoked at least five or more cigarettes a day, followed by a 30-minute interview in their homes.

After the interview, respondents were asked to turn over their cigarettes and packages, which were then analysed by Imperial Tobacco.

The survey results, are considered accurate within plus or minus 2.2 percentage points.

According to the study, at least 95 per cent of the illicit cigarettes, which sell for about a third of the cost of legal ones, were manufactured on native reserves.

Sales of illicit cigarettes were much higher in Ontario and Quebec than the rest of the country, where only 16.5 per cent of cigarettes sales involved illicit product, the survey found.

Mr. Kemball said the tobacco company and retailers want the government to "level the playing field" by enforcing the law when it comes to reserves.

According to the Criminal Intelligence Service Canada, illicit cigarettes are manufactured on reserves near the Canadian border in the United States and smuggled into Canada before being distributed across the country.

While Quebec has increased inspections and raised fines for those caught selling illegal cigarettes, Ontario has continued to increase taxes, which has only made the situation worse, Mr. Kemball said.

In Ontario and Quebec, taxes make up about 70 per cent of the price paid by consumers.

"It's throwing more petrol on the fire," he said.

"At the end of the day, smokers will find products once tobacco products are being priced beyond their ability to purchase them."

Attempts to reach Ontario Finance Minister Greg Sorbara or officials from the Ontario Ministry of Finance were unsuccessful yesterday.

However, Mr. Watson said Ontario's taxes are lower than the national average and the provincial government stepped up enforcement as of last year.

"Of course they want to lay the blame at the foot of government and then say just as many people are smoking," said Mr. Watson. "I don't for a moment believe their statistics are credible."

Mr. Kemball said the tobacco company, which loses between $50 million to $80 million annually from the manufacture of illicit cigarettes, understands the political and financial implications to lowering taxes and is not asking for a tax reduction.

"All we're asking for is the laws of Canada to be applied," he said.

© The Ottawa Citizen 2006