Tobacco Farmers Balk at Buyout

Source from:  By MONTE SONNENBERG, SUN MEDIA The London Free Press 08/11/2008

Tobacco farmers' lawsuit against Ottawa and Queen's Park over the downfall of their industry isn't over, despite a buyout offer last week. Growers appeared to take a big step forward to ending their suit last Friday when federal Agriculture Minister Gerry Ritz announced a $285-million buyout of tobacco quota. An expected contribution of $190 million from the McGuinty government would have met the Ontario Flue-Cured Tobacco Growers Marketing Board's buyout objective of $1.74 per pound. But Ontario Agriculture Minister Leona Dombrowsky said the province wouldn't take part and told the tobacco board to renegotiate with the Harper government if it thinks the Ritz package isn't sufficient. "We thought with this that a lot of people would want to drop out (of the lawsuit)," said Gary Proven of Courtland, co-chair of the New Tobacco Alliance, sponsor of the legal action. "What we've found is more people want to get on board. Members who have talked to us have said it is not enough and we need to proceed." Executive members of the New Tobacco Alliance will meet in London next week with their legal team from McKenzie Lake Lawyers to discuss how the Ritz package changes the legal dynamic of the situation -- if at all. "We're in the same boat you're in," said Proven, past-president of the Norfolk chapter of the National Farmers Union. "We're waiting for new information as well. We're very close to having our case put together." McKenzie Lake recently advised the New Tobacco Alliance that legal action -- if pursued -- should focus on the constitutionality of the high taxes Ottawa and the provinces have imposed on tobacco, which remains a legal product. The law firm also says both levels of government are vulnerable for feeble enforcement efforts in the area of contraband tobacco and illegal sales of product. In other developments, the Ontario Federation of Agriculture applauded Ottawa's offer to buy out growers. In a news release, OFA president Geri Kamenz encouraged Dombrowsky to join with Ritz to help tobacco farmers exit the industry "with dignity and grace." "Tobacco growers became victims of circumstance as their industry was forced into decline by health issues and government taxes and their assets lost value," Kamenz said in a statement. Enditem