Bill S-16 (Historical)

Tackling Contraband Tobacco Act

An Act to amend the Criminal Code (trafficking in contraband tobacco)

This enactment amends the Criminal Code to create a new offence of trafficking in contraband tobacco and to provide for minimum penalties of imprisonment for repeat offenders.

Tackling Contraband Tobacco Act

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I will start with the second question first.

I am one of the few members in the House who is very active on the estimates, and I understand the spending. My view of the spending is that it has not changed. However, I find it ironic that the New Democratic Party, on every occasion, wants us to spend more money on this and more money on that and says that we have a lack of resources on this and a lack of resources on that. Then another NDP member will say that we cannot balance the budget and cannot balance our books. They contradict themselves.

The books are a two-sided equation. There are expenses, and there are revenues. The NDP may want to raise taxes to make up the revenues. I never thought of that.

On the consultation piece, that is what second reading is all about. Send the bill to committee. Of course we will not call the smugglers. Why would we invite those whose businesses we are hoping to end? We should be asking those who are directly affected by this illegal activity to come to the committee to tell us if this is the right way or if there is any additional way to tackle this problem.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I wanted to ask a somewhat difference question before the member for York Centre asked who we should be consulting and said that the official opposition would be suggesting that we should be consulting with the smugglers.

That is what is wrong with this place. This was, until that time, a fairly sensible debate. I have been here pretty near 20 years. I have never sat through a question period as embarrassed for every one of us as I was today. It is because of the kinds of remarks from the member for York Centre. The government sets the tone in here, and the tone is spiralling down so much that we are all embarrassed by what happens in this House. That question just shows the kind of attitude government members have to sensible debate in this House.

My question to the member on the legislation, the key point, is whether it will work. The government comes forward, in every bill, with minimum sentences. Minimum sentences, I submit, we will see in ten years' time are not the answer. There is much more than minimum sentences required.

Why do we appoint judges? Why do we instill experience in judges so that they can make decisions for extenuating circumstances? That has to be taken into consideration as well. Minimum sentences in themselves will not do the job.

We will be supporting sending this legislation to committee in the hope that proper discussion can take place there.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I will not comment on the comments by the member for Malpeque. I will go to his retirement party when he has it.

Mandatory minimums were not invented by this government. They existed in many parts of the Criminal Code prior to our attaining government. In fact, the Liberal Party of Canada instituted a number of mandatory minimums in a number of areas.

We have, and I think we have done the right thing, increased some of those mandatory minimums throughout the Criminal Code. I am confident that keeping criminals in jail for a longer time protects people, including those in my riding.

[Rob Nicholson, Conservative, Minister of Justice and Attorney General of Canada]

Mr. Speaker, I am pleased to speak on Bill S-16, the tackling contraband tobacco act. This bill is part of the government's continued commitment to taking steps to protect Canadians and make our streets and communities safer. It would fulfill our government's 2011 election policy platform commitment to reduce the problem of trafficking in contraband tobacco by introducing legislation that would establish mandatory jail time for repeat offenders trafficking in contraband tobacco.

Contraband tobacco is a threat to the public safety of Canadians, our communities and our economy. It fuels the growth of organized criminal networks, contributing to the increased availability of illegal drugs and guns in our communities. The availability of inexpensive illegal tobacco does not just undermine our safety and our economy; it also has a negative impact on our public health goals.

The smoking rate of this country is at a historic low of 17%. The percentage of Canadians who smoke on a daily basis is at 14%. Smoking is a major risk factor for cancer, respiratory disease and heart disease. Tobacco smoke contains over 4,000 chemicals, of which more than 70 are known to cause, initiate or promote cancer. Tobacco is responsible for more than 37,000 premature deaths in Canada every year.

In 2012, our government renewed the federal tobacco control strategy for five more years. Under this strategy, the government introduced warning labels on cigarette packages, which now contain a national quit line and a web address for people who want assistance to quit. We also banned small flavoured cigars, which were clearly targeted towards youth. In addition, we launched a marketing awareness and outreach campaign targeted at young adult smokers.

Contraband tobacco is a pressing issue. The availability of inexpensive illegal tobacco products has a negative impact on public health, particularly for our children. Young people are smoking contraband cigarettes in alarming numbers. Criminals are selling contraband tobacco to teens, and the proof is all over our schoolyards. A study conducted on the proliferation of contraband tobacco in high schools in Ontario and Quebec found that nearly one-third of the cigarettes found in Ontario high schools and over 40% of the cigarettes found in Quebec high schools were contraband products. Because contraband cigarettes are cheaper than regular cigarettes, they are more easily purchased by teenagers.

Our government is committed to keeping contraband tobacco off of our streets and out of our communities, where cheap baggies of illegal cigarettes lure our children into smoking. Contraband tobacco is a pressing issue, and the availability of inexpensive illegal tobacco products is a serious problem.

This bill, however, is not just meant to discourage the smoking of contraband cigarettes. It is also meant to address the more general problem of trafficking in contraband tobacco that propelled by organized crime groups.

As most members are aware, there is no offence of trafficking contraband tobacco in the Criminal Code. Currently, the Excise Act is the legislative vehicle used to lay charges and prosecute for offences related to tobacco, including the possession and sale of contraband tobacco. This bill would amend the Criminal Code and establish a new offence of trafficking in contraband tobacco, with mandatory jail time for second and subsequent convictions. Placing the offence in the Criminal Code reflects the serious nature of this offence.

A primary target of this new offence is organized crime groups that are trafficking large volumes of contraband tobacco. Bill S-16's definition of trafficking would range from the sale, possession for the purpose of sale or the offer for sale to the transportation, delivery or distribution of a tobacco product or raw leaf tobacco that is not packaged, unless it is stamped. The terms "trafficking", "tobacco product", "raw leaf tobacco", "packaged" and "stamped" have the same meanings as they do in the Excise Act of 2001.

The penalty for a first offence would be up to six months of imprisonment on summary conviction and up to five years of imprisonment if prosecuted on indictment.

Repeat offenders convicted of this new offence in cases involving 10,000 cigarettes or more, 10 kilograms or more of any other tobacco product or 10 kilograms or more of raw leaf tobacco would be sentenced to a minimum of 90 days on a second conviction, a minimum of 180 days on a third conviction and a minimum of two years less a day on subsequent convictions if they are prosecuted by indictment.

As well, the government is advancing its efforts to combat the trafficking and cross-border smuggling of contraband tobacco by establishing a 50-officer RCMP anti-contraband tobacco force. We have not heard much about that from the opposition, but it is one of the important components of this move forward.

This anti-contraband tobacco force will target organized crime groups engaged in the production and distribution of contraband tobacco. The RCMP will continue to work alongside enforcement partners. Its goal is to have a measurable impact on reducing the contraband market and combatting organized criminal networks.

In 2008, the government established a multi-agency task force to examine ways to combat the trade in and manufacture of illegal tobacco products.

In 2010, our government continued its efforts by providing $20 million for initiatives to combat contraband tobacco, including funding for the RCMP to establish a special enforcement unit whose sole task was to target the criminal networks behind the manufacture and distribution of illegal tobacco. Bill S-16 would align with the RCMP's contraband tobacco enforcement strategy, which focuses on reducing the availability of and demand for contraband tobacco.

In addition, since 2008 the RCMP has laid almost 5,000 charges, disrupted approximately 66 organized crime groups involved in the contraband tobacco markets and seized 3.5 million cartons and unmarked bags of contraband tobacco, along with numerous vehicles, vessels and properties.

This bill would also amend the definition of Attorney General so as to give the Attorney General of Canada concurrent jurisdiction with the provinces. As such, either provincial or federal Crowns could prosecute pursuant to this new provision.

This represents a serious approach to contraband tobacco activities. The government recognizes that this is action that must be taken.

This is a comprehensive approach. It is complete. It sends out the right message to organized crime elements in this country that this kind of activity will not be tolerated by this government.

[The Acting Speaker, Conservative, Bruce Stanton]

The hon. Minister of Justice will have twelve and a half minutes remaining when the House next returns to debate on this question, and then the usual 10 minutes for questions and comments.

It being 5:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's order paper.

The House resumed consideration of the motion that Bill S-16, An Act to amend the Criminal Code (trafficking in contraband tobacco), be read the second time and referred to a committee, and of the motion that this question be now put.

[The Acting Speaker, Conservative, Barry Devolin]

When this matter was last before the House, the hon. attorney general had the floor. If he wishes to continue with his remarks at this time, he has twelve and a half minutes remaining.

The hon. attorney general.

[Rob Nicholson, Conservative, Minister of Justice and Attorney General of Canada]

Mr. Speaker, I was very pleased in the time I had to conclude all the remarks that I wanted to make about this legislation, but I certainly want to be available in case there are any questions. I feel I probably have answered all the questions that could possibly come forward on this bill, but just in case there are any, I want to make myself available.

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I would like to ask the minister if he would give us some indication of the organizations that he and his department consulted with in order to develop Bill S-16.

The whole question of contraband tobacco affects other jurisdictions and a number of organizations. How this legislation was conceived and how it will be carried forward are important.

In that respect, I wonder if he could give the House some indication of the consultations that were conducted in order to get to this point.

[Rob Nicholson, Conservative, Niagara Falls, ON]

Mr. Speaker, interestingly enough, we have brought in many pieces of legislation covering various aspects and different issues within the Criminal Code and indeed all issues as they relate to crime in this country and to the role that victims play.

One of the issues that is continuously raised with me is the question of contraband tobacco. I have heard it, quite frankly, from my constituents going back a number of years and in my discussions with law enforcement agencies over the years and when I have been at round tables and discussed justice issues. People have brought it to my attention when I have gone across the country. This is one of those subjects that has certainly received a lot of attention, and I have had a lot of representations made to me.

Coming forward with this legislation is entirely appropriate. That is why I believe this legislation will be so well received. Having extra options for the police and crown attorneys, concurrent jurisdiction between the federal and the provincial attorneys general with respect to prosecution, putting it in the Criminal Code and sending out the message that this kind of activity will not be tolerated in Canada are entirely appropriate.

I was pleased with all the input that we had on this, and this legislation is a result of all that input.

[Dan Albas, Conservative, Okanagan—Coquihalla, BC]

Mr. Speaker, in regard to this bill, obviously there are provisions that are currently within the Excise Act that are being added to the Criminal Code. He mentioned how the federal and provincial attorneys general could work better to fight against organized crime to tackle some of these joint jurisdictional issues.

I do serve on the justice committee. Certainly, there would be a lot of process for further consultation and discussion about the merits of the bill. I would like to hear the minister speak to why this needs to get to committee, why the committee needs to examine the bill and why this legislation needs to go forward as soon as possible.

[Rob Nicholson, Conservative, Niagara Falls, ON]

Mr. Speaker, that certainly is a good question. Again, I want to thank the member for his input and contributions to the justice committee. He has certainly been a positive addition to that group of individuals who are working so hard to come forward and support legislation to better protect victims and address concerns within the criminal justice system.

He points out, quite correctly, that what we have done here is we have expanded beyond the Excise Act. By putting it in the Criminal Code, we do not repeal the former in favour of the latter; it will be in both pieces of legislation. This certainly gives more options to law enforcement agencies across the country.

I can tell him that I have had, for instance, members of the OPP say to me that when they came across contraband tobacco, they would turn it over to the RCMP for prosecution under the federal legislation. Again, what we are saying with this piece of legislation is that they do not necessarily have to get the RCMP involved. The OPP and local law enforcement agencies can come forward with the information and it can be prosecuted by a provincially appointed crown attorney, at the same time preserving the federal jurisdiction in this area.

We are adding one more significant tool to the fight against contraband tobacco. I would like to see this bill get to committee as quickly as possible to have the committee take a further look at this important piece of legislation.

[Nycole Turmel, NDP, Hull—Aylmer, QC]

Mr. Speaker, I appreciated the minister’s remarks about contraband and the problem we are now facing.

We know that when we are talking about contraband, we are also talking very often about organized groups and the impact on young people and those who are trying to get hold of cigarettes or other things more easily.

In terms of information, what has been done and what is planned in order to raise public awareness, particularly about the effects and the impact of cigarettes and contraband cigarettes?

We must not think only about the loss of revenue for the government. We must focus on the organization built up around contraband, which is inconsistent with basic principles, and the health impact of tobacco smoke. When people try to get cigarettes or other things as quickly and as cheaply as possible, we know very well that that is when consumption increases.

[Rob Nicholson, Conservative, Niagara Falls, ON]

Mr. Speaker, I agree with the hon. member that organized crime is exactly who is running this business in this country. These are individuals who come together for the purpose of bringing in or distributing contraband tobacco in this country. Very often their target is young people they try to induce with inexpensive contraband tobacco. The tragedy is that tobacco use is the number one preventable cause of death. We know the effects tobacco smoking has on individuals, and we know that the effects can be prevented and death can be avoided by non-use and by people stopping the use of these products.

I mentioned a couple of times today other aspects of the government's strategy to discourage tobacco use in this country. I made reference in remarks earlier today to changes to the labelling of cigarettes and to what the provinces are doing in terms of making sure that cigarettes do not get into the hands of young people.

We all have an interest in this. It is an area that desperately needs more attention, more regulation and more tools to combat it. This piece of legislation is an important component of that and is certainly a positive step forward.

In terms of directing this to make sure that young people do not get involved in this kind of activity, and recognizing that these are very sophisticated individuals who get involved in this kind of activity as part of organized criminal gangs, I agree that this is exactly who we have to target and what we have to do.

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I will be rising shortly to expand on some of these issues.

I just want to say that there is no question that this initiative is a necessary one. It is an important initiative. It will also require some dedicated funding. I wondered if the minister could perhaps give this House some indication of the money that has been allocated to ensure that the police officials, the authorities, whoever would be involved in this, would be able to carry out these activities successfully.