Manitoba Budget Misses Opportunity to Get Tough on Contraband Tobacco

OTTAWA, April 17, 2013 /CNW/ - The National Coalition Against Contraband Tobacco (NCACT) is disappointed that the Manitoba provincial budget did not commit to greater contraband tobacco enforcement.

"Illegal cigarettes are a growing and significant problem in Manitoba," said Gary Grant, a 39-year veteran of the Toronto Police Service and national spokesperson for the NCACT. "The problem has already started to spread into Manitoba with the opening of a smoke shack near Brandon in late 2011 and plans to open another in Sioux Valley. Without action, there is a real risk of there being even more."

Nationally, there are more than 300 smoke shacks operating illegally and outside of government regulation. The absence of government enforcement at these smoke shacks has seen them become entrenched and their numbers grow to a point where they are out of control. They make a mockery of government tobacco control regulations, ignoring display and labeling restrictions and do not pay appropriate taxes.

"Contraband tobacco is serious business," continued Grant. "Illegal cigarettes are a cash cow for organized crime, with the RCMP estimating that about 175 criminal gangs use the trade to finance their other activities, including guns, drugs and human smuggling. Contraband's low price and easy availability also make it a prime source for youth smoking - after all, contraband dealers don't check I.D. Illegal cigarettes also affect Manitoba's bottom line, with the trade siphoning as much as $2.1 billion away in lost revenues from governments in Canada each year."

Primarily centralized in Ontario and Quebec, the contraband tobacco trade has begun to spread throughout the rest of Canada. A lack of early and meaningful action in Ontario and Quebec allowed an illegal cigarette problem to entrench itself. It is important that the Manitoba government not make the mistake of its neighbours and act early to address this problem. It is imperative that Manitoba implement tough anti-contraband measures, including expanded police powers and tougher penalties for those caught smuggling. The province must also provide adequate funding to ensure that these measures are successful.

"The government must take meaningful action against contraband tobacco," concluded Grant. "If it doesn't, it risks letting the contraband tobacco problem grow out of control, causing significant harm to communities across Manitoba."

About NCACT
The National Coalition Against Contraband Tobacco is a Canadian advocacy group formed with the participation of businesses, organizations and individuals 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.

The members of the NCACT include: Canadian Convenience Stores Association (CCSA), Retail Council of Canada, Canadian Taxpayers Federation, Canadian Tobacco Manufacturers Council, National Convenience Stores Distributors Association (NACDA), Canadian Chamber of Commerce, Frontier Duty Free Association, Flue-Cured Tobacco Growers, Fédération des Chambres de Commerce du Québec (FCCQ), Conseil du Patronat du Québec (CPQ), l'Association des marchands dépanneurs et épiciers du Québec (AMDEQ), Toronto Crime Stoppers, National Citizen's coalition, The Customs & Immigration Union (CIU), the Ontario Chamber of Commerce, and the Canadian Manufacturers and Exporters.

SOURCE: National Coalition Against Contraband Tobacco

Michael Powell
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