Bill S-5 Will Open the Floodgates for Illegal Tobacco in Canada

OTTAWA, May 10, 2018 /CNW/ - Today, the National Coalition Against Contraband Tobacco (NCACT) warned the Federal Government and the public that the passing of Bill S-5, An act to amend the Tobacco Act, has missed the mark in terms of protecting Canadians from the harms of tobacco. NCACT and many other stakeholder groups were very vocal on how introducing plain packaging, a significant component of S-5, without first addressing contraband would result in a surge in illegal tobacco in Canada, something already extremely prevalent in provinces across the country. In spite of serious concerns raised at both the House of Commons and Senate levels on this issue, the Bill was pushed through without any sense of how these concerns will be addressed.

"Canada has a massive contraband tobacco problem, representing the biggest challenge to reducing smoking rates. Illegal cigarettes cost often $70 less than the legal product making them extremely profitable and widely distributed," said Gary Grant, a 39-year veteran of the Toronto Police Service and national spokesperson for the NCACT. "Eliminating cheap, illegal cigarettes are the low-hanging fruit for reducing smoking. Unfortunately, the passing of Bill S-5 has completely missed this opportunity."

The RCMP have identified 175 organized crime groups involved in the illegal cigarette trade, who use the proceeds to fund their other illegal activities, including guns, drugs and human smuggling. In Ontario alone, more than one in three cigarettes purchased in the province are illegal. In fact, the Ontario Provincial Police stated recently in a national interview on CTV's W5 that those numbers were closer to 40 to 50 per cent.

"Price difference between legal and illegal cigarettes drives people to source contraband tobacco because it is so cheap and much too easy to get in Canada," continued Grant. "In relation to marijuana, the government acknowledges that price drives consumers. They also recognize that enforcement is key to stopping contraband, but the focus of Bill S-5 became passing it quickly, rather than first setting up checks and balances to regulate enforcement. We would encourage that before Bill S-5 comes into force, a proper study on the contraband market be done by the government so they can monitor the effects plain packaging will undoubtedly have on the illegal market."  

50 illegal factories fuel the contraband market, each able to make as many as 10,000 cigarettes a minute. Illegal cigarettes are making their way to market in all parts of Canada with busts occurring frequently in the Western provinces and Atlantic Canada.

"By doing nothing, Canada has had virtually no success in reducing the prevalence of contraband tobacco in recent years. It seems content to continue this strategy," concluded Grant. "If the government is serious about reducing smoking rates, targeting cheap, illegal cigarettes is the only way to do so and S-5 will offer an open invitation for criminals to counterfeit legal products and undermine all regulation efforts." 

The National Coalition Against Contraband Tobacco is a Canadian advocacy group formed by organizations and associations concerned about the growing danger of contraband cigarettes. NCACT members share the goals of working together to educate people and urge government to take quick action to stop this growing threat. More information about the Coalition can be found on our website, www.stopcontrabandtobacco.ca.

SOURCE National Coalition Against Contraband Tobacco (NCACT)

Media Contact: Mike Powell, NCACT Public Affairs, Telephone: [phone], Email: [email protected]

Related Links

http://stopcontrabandtobacco.ca/