Tobacco: Growers Still Have no Real Help

Source from:  By Jeff Helsdon STAFF WRITER Monday May 12, 2008 05/13/2008

Tobacco board chair Linda Vandendriessche is encouraged by Wednesday's announcement the federal government will crack down on black market cigarettes. In a joint news conference with the RCMP, Public Safety Minister Stockwell Day pledged to choke off suppliers, seize more smokes and shut down illegal manufacturers -- many of them on First Nations reserves. A number of new RCMP hires will be dedicated to the crack-down strategy, and a new public awareness campaign will warn against buying bargain-priced smokes. Last year 618,000 cartons of contraband smokes and 28,000 kilos of loose tobacco were seized -- a 35 per cent rise in the last decade. Most of the illicit weed is made in New York side of the Akwesasne reserve and smuggled back in to Canada or is shipped in containers from China. Others are produced in Canada, including many on native reserves. Vandendriessche was in Ottawa Wednesday for the announcement. "We are encouraged by the government commitment to action," she said. "It's long overdue. Illegal sales have taken some of our markets." The board chair noted Day said the crackdown on illegal tobacco was a first step, and that he recognized the need to help tobacco growers and their communities. "That too is good news," she said. "As long as things are going in the right direction that's important." Haldimand-Norfolk MP and Minister of Citizenship and Immigration Diane Finley said the black market - which comprises 25 to 40 per cent of the market - is responsible for a lot of the decline in demand for leaf grown by tobacco producers. "Anything we can do to crack down on this will only help," she said. She was pleased with the announcement, as the crackdown is something the tobacco board had been pushing for. Vandendriessche did have some concerns about the timelines associated with the crackdown. The chairman was unsure if the announcement would have any ramifications on the 2008 crop size. While in Ottawa, board official met with local politicians and agriculture minister Gerry Ritz.. Vandendriessche said Ritz was pleased with the contraband announcement and said there needs to be a comprehensive solution to help the farmers. Haldimand-Norfolk Liberal candidate Dr. Eric Hoskins wasn't so sure the contraband crackdown would assist growers, pointing out the problem has been around for a long time. "It's a big issue and a big problem, but it's not a solution to the problems tobacco farmers are facing today," he said. A family doctor, another of Hoskins' concerns is the cheap contraband cigarettes will end up in the hands of children. He believes black market cigarettes are more available to children. Finley admitted increased enforcement of black market sales won't help the plight of tobacco growers immediately. But, she pointed out, she has heard from growers who want to continue to grow and the measures will help them in the future. Discussions to find ways to tweak existing programs to help growers are continuing. "It's important to remember while there are farmers who want to get out completely, there are those who want to transition into other crops and those who want to continue growing," she said. "We're trying to find solutions to help all them." Asked if the quota system might be an impediment to those continuing to grow, Finley said quota is a provincial jurisdiction and she encouraged board members to talk to the province about it. Brant Liberal MP Lloyd St. Amand said cracking down on contraband wouldn't help tobacco producers, who face a "grave situation". He said growers couldn't wait 18 months for a crackdown on illegal tobacco to start. "That's not going to result in 40 per cent (of the market) being reduced to zero in the next few months," he said. Still, he said it's time the illegal tobacco trade is dealt with by government. Competition from the illegal trade, along with the huge amount of "sin taxes" collected by the government, are reasons St. Amand believes tobacco producers should have a compensation package. Crop negotiations to continue In the mean time, the board will continue to meet next week to discuss crop size at the Tobacco Advisory Committee. The tentative crop size for 2008 is still in the 16.5 to 20 million-pound range, which translates into growers being able to grow only six to seven per cent of their tobacco quota holdings. "That just talks to why there's a need for a program when we have only six to seven per cent growable," Vandendriessche said. Enditem