Ontario held its Standing Committee on Finance and Economic in Cornwall on Thursday where Rothmans, Benson & Hedges Inc. made recommendations to curtail the ever-growing illicit tobacco trade in Canada.
The annual meeting allows consultants to weigh in on Ontario’s upcoming provincial budget.
It’s estimated that the contraband tobacco market represented up to $1.7 billion in lost provincial tobacco tax revenue from 2019 to 2023.
Head of External Affairs for RBH Kory McDonald spoke before the Legislative Assembly committee to present recommendations for the 2024 Budget, focussing on how best to combat contraband tobacco.
Ontario’s illicit tobacco trade accounts for anywhere between 39% to 50% of all cigarettes smoked in the province, according to data from the Convenience Industry Council of Canada.
Products are facilitated by organized crime syndicates and the profits help to further fund their other criminal enterprises like human trafficking and the sale of weapons and harder drugs like fentanyl.
The underground trade also increases the risk of youth’s access to tobacco as sellers have no incentive to ID underage customers.
McDonald recommended that the Ontario government “increase penalties in the Tobacco Tax Act to disincentivize the manufacture, distribution and sale of contraband tobacco products.”
“Without action, Ontario’s 1.5 million adult smokers will continue to face barriers to accessing potentially less harmful alternatives. Governments should acknowledge harm-reduced product categories within the Tobacco Tax Act to encourage adult consumers to switch to potentially less harmful alternatives to cigarettes These modest steps could make a huge difference in protecting Ontarians from organized crime, increasing provincial tax revenue and helping curb youth access to tobacco and nicotine products,” said McDonald.
Among the recommendations presented were the launching of a public education campaign to outline the rules of purchasing contraband tobacco products, increasing police abilities to inspect vehicles suspected of trafficking and assigning Ministry of Finance investigators to monitor and report the illegal tobacco trade online.
“It’s a big business, especially for organized crime,” Danny Fournier, Manager of Illicit Trade Prevention for RBH told True North in an exclusive interview last fall.
“These are common sense steps that can have a big impact in terms of slowing the continued growth of the contraband tobacco market and keeping Ontarians safe. As well, there’s a need for governments to address the fast-growing issue of online illicit trade and establish their own online detection and interdiction program. While this space represents a clear threat it can also be a great opportunity to have better cooperation between government and private sector,’ said Fournier.
Liberals, legacy media in total meltdown over Tucker Carlson Alberta visit
Calgary and Edmonton played host to conservative commentator Tucker Carlson’s speaking tour this week, causing Canadian Liberal politicians and legacy media figures to completely meltdown over the event.
The well-attended event drew criticism from key political figures who alleged Carlson and Alberta Premier Danielle Smith were fanning the flames of “political violence.”
Environment Minister Steven Guilbeault held a press conference to express his concerns, alleging that Smith incited violence by suggesting Carlson put Guilbeault in his “crosshairs.”
“This goes beyond me and the fact that I was targeted last night at this event increases political violence against everyone who runs for office in this country,” claimed Guilbeault.
Minister of Transport Pablo Rodriguez seized the opportunity to label the event as an example of the “extreme right” infiltrating Canadian politics.
“The extreme right politics. Don’t ask if it’s coming to Canada. It’s already here,” said Rodriguez.
Media pundits joined the chorus of disapproval. David Frum expressed disappointment in what he perceived as Canada reverting to relying on “cancelled US programming.”
“The thing that’s so sad is that I thought Canada had passed the point where Canadians had to make do with cancelled US programming as if it were fresh and new,” said Frum.
Former environment minister Catherine McKenna also weighed in, condemning Smith’s invitation to Carlson as “UnCanadian and dangerous.”
“Appalling. Danielle Smith encouraging American right-wing rage farmer with a massive base to attack a Canadian politician. UnCanadian and dangerous,” said McKenna.
National Observer columnist Max Fawcett called the event “unbelievably reckless,” while CTV pundit Scott Reid accused Smith of endorsing Carlson’s statements by extending an invitation, despite Smith’s repeated claims that agreeing to an interview by anyone does not constitute agreement with all of their positions.
TikToker Rachel Gilmore suggested that Carlson had spread the “replacement conspiracy that has inspired mass violence.”