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.

The House resumed from June 11 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.

Second reading

[The Acting Speaker, Bruce Stanton]

Order. I wish to inform the House that, because of the proceedings on the time allocation motion, government orders will be extended by 30 minutes.

Resuming debate. The hon. member for Lac-Saint-Louis.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, we are looking at the issue of tobacco use, which is a scourge on our society. This issue looms over our society on many levels, and has been doing so for decades. Over the years, significant financial resources have been put into the fight against smoking.

Tobacco use is a fairly complicated issue, as is contraband tobacco. This is clearly a health issue. We know that smoking is bad for people's health. Over the years, we have come to realize that not only do smokers suffer serious consequences, but those around them can also suffer. Years of research led to those conclusions.

Just as an aside, it is very telling to look at how tobacco and its health effects were dealt with during studies in the 1960s and 1970s. A similar approach is being used now with respect to other products that can be harmful to humans. For example, when a manufacturer of a potentially harmful product states that there is no proof that the product is harmful, reference is often made to tobacco and the fact that in the 1960s and 1970s, tobacco manufacturers said that studies were inconclusive. To an extent, that experience shaped how we look at things.

This issue has health consequences. Tobacco, especially contraband tobacco, also has a significant economic impact, especially on aboriginal reserves. We know that criminals are involved in trafficking contraband tobacco, but we also see that on reserves, more and more ordinary people are working in tobacco plants. It does not matter to them if the plant is operating within the law or is hidden in the woods. These people are not criminals. They just want to earn a living. They may not give much thought to all the legal aspects surrounding the tobacco operation they are working for.

Aboriginal reserves are very involved in manufacturing tobacco products, whether legally or otherwise. The problem is that these reserves are becoming more and more dependent on selling tobacco and manufacturing tobacco products, which makes them somewhat vulnerable. It is obvious to most people here the House that in the long run, tobacco consumption will decline. If an aboriginal reserve becomes dependent on the tobacco industry, what will people there do when the industry collapses, if it comes to that?

There are health-related questions and an economic aspect to consider. There is also a financial aspect for the government because the tobacco industry, in general, generates significant tax revenues for the government.

When a black market expands, it eats into government revenues. According to some experts, the black market accounts for almost one-third of the Canadian tobacco market.

For example, there are reportedly 300 smoke shacks in Canada. At these shacks, which we sometimes see on the roadside in aboriginal reserves, cigarettes are sold to aboriginal peoples, who have the right to purchase them without paying taxes, and also to other people passing through the reserve to buy these products tax-free. Furthermore, there are approximately 50 illegal cigarette factories, and some of them are quite large.

There is also organized crime. Trafficking in contraband tobacco is an activity that attracts organized crime, which is involved in trafficking in many other goods, including drugs and illegal arms. It is a scourge on several accounts.

Another important aspect with regard to our federation, one of the most advanced in the world in terms of the fight against trafficking in contraband tobacco, is that this involves at least two levels of government. The federal government must work with the provinces, and especially with provincial police forces, to try to address this problem.

This brings us to Bill S-16. Let us talk a bit about what Bill S-16 would do.

First, it would bring the issue of contraband tobacco into the Criminal Code. A lot of people listening at home are probably surprised that selling contraband tobacco is not a Criminal Code offence at this time. People know that they should not be doing this and that there are legal consequences, but those consequences currently are not under the Criminal Code. They are under the Excise Act. There are fines under the Excise Act for engaging in the illegal sale of contraband tobacco.

Bill S-16 would add offences under the Criminal Code. It would add as offences selling, offering for sale, transporting, delivering, distributing or possessing for the purpose of sale a tobacco product or raw-leaf tobacco that is not packaged, unless it is stamped. These are the new offences that would be created under the Criminal Code.

The point is that it would allow the government to make it a more serious offence to engage in the sale of contraband tobacco, but it would also give prosecutors flexibility. A prosecutor would be able to decide whether to prosecute under the Excise Act, which would mean, I would imagine, that the burden of proof may not be as high, or whether to prosecute under the Criminal Code, which carries more severe offences. Therefore, the bill would provide more flexibility for prosecutors.

It would also empower all police forces to combat tobacco smuggling. Currently, only the RCMP can get involved under the Excise Act, but if the offence is under the Criminal Code, provincial and municipal police forces would be able to enforce the act. Of course, the bill would make consequential amendments to the definition of “attorney general” so that both the federal government and the provinces could prosecute offences through their Attorneys General.

The act would introduce minimum sentences for repeat offenders where there is a high volume of contraband tobacco involved. When we talk about a high volume, we mean, under Bill S-16, over 10,000 cigarettes or over 10 kilograms of other tobacco products.

These minimum sentences would apply only where prosecution was on indictment versus summary conviction. What is interesting is that the minimum sentence would only kick in on the second conviction. The sentence would be 90 days on a second conviction, 180 days on a third conviction and two years less a day on subsequent convictions. I imagine that this means that the time served would be not in a federal penitentiary but in a provincial jail. The minimum sentences would apply only when the first offence was under the Criminal Code, not under the Excise Act, for example.

The Liberal Party is generally reticent to support legislation that has minimum sentences, because experts have told us that these simply do not work in terms of making society safer. In this case, we are willing to consider the minimum sentence, because it would not apply on a first Criminal Code offence. However, we want to study the matter a little more closely in committee and bring in the experts to tell us what the impact of these minimum sentences would be.

We have to be careful that these minimum sentences catch the serious criminals and not, for example, a young aboriginal person who is perhaps not 100% aware of what he or she is doing and is acting as a mule, transporting cigarettes, maybe even without his or her knowledge. Obviously, we want to keep aboriginal youth out of jail. We do not want to see them go down that road if it can be avoided. The fact that the minimum sentence does not apply on the first offence is something that allows us to consider supporting the bill throughout the process and certainly allows us to vote for it to send it to committee.

We also want to study the fact that we are basically, in some ways, duplicating offences, because there are fines under the Excise Act. Are we just duplicating for the sake of a public relations effect, or will the bill really be effective? We can only tell once we bring in the experts.

I would also point out that there is an interesting contradiction in the bill, because usually, under the Criminal Code, if someone commits an offence and had committed a prior offence, but the prior offence was committed more than 10 years earlier—in other words, 10 years has elapsed between offences—generally, the court does not consider the first offence in its decision. This is not the case with Bill S-16. First offences, even if committed 10 years prior, would still enter into the consideration of the court's decision. We want to look at that, and we would want to know why the contradiction exists in this case.

The government sometimes prefers easy solutions or symbolic gestures that make the public believe that the government is acting decisively, even though the proposed solutions are sometimes ill-conceived and simplistic whereas the issues require more complex and nuanced responses.

We must do more than just rely on Bill S-16. For example, there are at least three things we must do in addition to introducing, debating and passing this bill.

First, an ongoing advertising campaign that is well funded by the federal government or other levels of government is required. I believe that the Conservative government has already made a commitment in that regard. The advertising campaign is needed to raise awareness because a fair number people stop by smoke shacks on reserves to buy cartons of tax-free cigarettes. As I mentioned at the beginning of my speech, the sale of these cigarettes is connected to organized crime in a number of ways.

If we tell most people that that is the case, they might think twice before buying tax-free cigarettes, even though it may be more expensive for them. I think that most people do not want to contribute to the problem of organized crime. If we explain to them that they are contributing to the rise of organized crime by buying contraband cigarettes, many people will not buy cigarettes at these sales outlets.

Second, we need to invest in enforcing the act. I know that the government announced that it was going to create a special unit within the RCMP to combat trafficking in contraband tobacco. I hope that an appropriate amount of long-term funding will be allocated to this.

There is also the problem of the border crossing between Massena and Cornwall. This border crossing, which was located on Cornwall Island, was moved to Cornwall, on the Canadian side of the St. Lawrence River. Right now, the government is considering moving the border crossing again, this time from Cornwall to Massena, which is on the American side of the river. The government is supposedly negotiating with the United States in this regard. Many observers and stakeholders, including the tobacco industry and the Government of Ontario, have reservations about moving this border crossing.

I am therefore asking the government to think carefully about what it is trying to accomplish by moving this border crossing and to leave it on the Canadian side of the river. The Government of Ontario and Minister Madeleine Meilleur in particular are asking the government not to move the border crossing.

This matter requires the co-operation of the federal and provincial governments. The government will also have to work with the provinces, particularly Ontario. Ontario is currently not monitoring farms that grow tobacco leaf, which opens the door to using raw materials for the production of illegal cigarettes and other tobacco products.

That being said, dear colleagues from the other parties, we are going to support this bill at second reading. I expect that we will be examining the issue in the fall, if Parliament is not prorogued. I hope that we will be able to ask the experts who come to testify in committee some fairly detailed questions.

[Candice Bergen, Conservative, Parliamentary Secretary to the Minister of Public Safety]

Mr. Speaker, I want to thank my colleague for his thoughtful perspective on this piece of legislation.

One of the aspects of contraband tobacco is the health issue related to tobacco as a whole. Not only are individuals buying tobacco that has been produced illegally, but many times, other illegal activity surrounds it.

My colleague serves with me and other members on the public safety committee. Even though we are talking right now about the legal issues related to contraband tobacco and organized crime, as a mother, I am concerned about young people who start smoking at an early age. Part of what feeds that is the ability to get cheap cigarettes. I am wondering if my colleague could comment on that.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, what is interesting is that I have been told that the problem is becoming so widespread—and I do not know if the word is blasé—that people can now receive contraband cigarettes by mail order and they will be deposited in their mailbox. This is a problem. It brings contraband cigarettes even closer to being accessible to our young people. Obviously we do not want them to ever start smoking, and certainly not at a young age.

An additional problem with illegal tobacco is that its production is not regulated. There have been impurities and all kinds of things put into contraband tobacco that people would not want to inhale into their system.

It is a serious problem. We have to get a better handle on it. I hope we will see some success in the years ahead.

[Lysane Blanchette-Lamothe, NDP, Pierrefonds—Dollard, QC]

Mr. Speaker, I thank my colleague for his very enlightening speech.

I think the crux of the debate here is not whether we need to tackle contraband tobacco. The bill makes a lot of sense. I think the debate should focus more on what we need to do before we pass such a bill.

I would like to know what my colleague thinks about the role that aboriginal communities should play in designing and passing this kind of bill. This will surely affect many aboriginal communities.

A number of reports, experts and studies have all said that the first nations should have a key role in tackling contraband tobacco in Canada.

Since my colleague is a member of the Standing Committee on Public Safety and National Security, and since this bill, if it is passed at second reading, will be sent to this committee for study, I would like to know what he would like to see in terms of consultation and collaboration with the first nations before such a bill is passed?

Since he will have to speak to this bill in committee, what would he be prepared to accept or not accept?

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, indeed, we will need to consult a whole range of experts, including those who are most familiar with aboriginal reserves. We will have to hear from band councils, especially those of the reserves involved. We will need to examine all aspects of this matter thoroughly in committee when witnesses come to give their testimony.

As I said in my speech, although this is a federal act, co-operation among the different levels of government is crucial. I mentioned the federal and provincial levels, but perhaps I should have also emphasized how important it is that band councils and aboriginal police forces be involved. Many aboriginal communities have their own police forces.

These people must be consulted at the committee stage of the bill. Furthermore, when it comes time to enforce the bill, it will be important to work with all stakeholders.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Speaker, I thank my colleague for his very insightful and thoughtful speech. This is a huge problem for the greater community of Ottawa–Gatineau. I have had retail store operators, local RCMP detachment officers, the Ottawa Police and beyond, make representations on the question of contraband cigarettes.

I was struck by one of the issues that was raised by my colleague in his speech, that being the question of effective outreach, communication, publicity and advertising. We need to impress upon Canadians that we need to continue what is really a very dramatic success story in Canada in terms of the number of people in Canada who do not smoke.

The government seems to have an awful lot of revenue for its economic action plan. We are seeing numbers now at about $100 million a year. I saw the ads again last night during the playoff hockey game. It did not spoil the game. It was a great game.

On a serious note, I want to ask my colleague if he could talk a bit about what he would envisage in terms of outreach and engagement, to make sure those powerful weapons are deployed against contraband tobacco products so that people do not smoke or we basically prevent them from starting to smoke. It is a terrible addiction. It would be very helpful to have my colleague speak to that.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, as I was saying before, I think most Canadians would shun contraband tobacco if they understood what was going on in the background when they purchased a cigarette. If one understood that one is unwittingly participating or feeding a multi-layered system of organized crime that touches on all kinds of issues, like gun smuggling, drug smuggling and human trafficking, I think people would think twice. The government needs to explain to Canadians the linkages between illegal tobacco and other crime problems in our society.

Over the years, I have had the opportunity to work with Heidi Rathjen, who was one of the spearheads, with Wendy Cukier, behind the push for the long gun registry. I do not want to mix the two issues. However, after working on that issue for a number of years, Heidi went to work for the Coalition québécoise pour le contrôle du tabac. She has been speaking to me over the years, wishing that the government would do more and would be more receptive to suggestions and recommendations. I hope the Minister of Health will take Heidi and her group seriously in terms of further developing a strategy against tobacco use.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank the hon. member for Lac-Saint-Louis for his speech.

I had the privilege of being a member of the Standing Committee on Justice and Human Rights. Dura lex, as the expression goes; the law is strict. While the law may be strict on paper, if we do not have the means to enforce it, then what good is it? Instead of being a real deterrent for criminals and traffickers of all kinds, it would merely be an idle threat.

During our deliberations in the Standing Committee on Justice and Human Rights, members have repeatedly pointed out that the government often likes to hide behind harsh sentences and laws that are strict on paper, but does not provide sufficient resources. That is something we in the NDP are very concerned about.

Does my colleague share the same concern?

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, I absolutely do. When a government puts a budget together, there are choices to be made. Sometimes these are difficult choices, but they have to be made. We are dealing with some rather significant public safety challenges, so perhaps now is not the time to be reducing public safety budgets, including the RCMP's, among others.

This takes more than legislation. It takes means. I know that my colleague opposite supported Bill S-2. The fact remains that there are no resources for creating women's shelters on reserves for victims of spousal abuse.

Having legislation is one thing, but at some point we need to have the necessary resources to ensure that the legislation produces positive, tangible results.

[Candice Bergen, Conservative, Parliamentary Secretary to the Minister of Public Safety]

Mr. Speaker, I appreciate the opportunity to speak in support of Bill S-16, an act to amend the Criminal Code (trafficking in contraband tobacco).

I want to begin my comments by saying that I agree with my colleagues across the way. When it comes to contraband tobacco, there are a number of challenges that have to be addressed. Certainly there is the issue of young people or individuals who smoke, the demand for tobacco and an increased demand for contraband tobacco, and the whole aspect of crime prevention.

However, up to this point the challenge has been the legislative gap. Law enforcement has only been able to charge individuals who are involved in this kind of illegal activity under the Excise Act. As legislators, we have a responsibility to look at issues like this and address them in their totality. That is why this piece of legislation is important and vital. However, it is not the only piece to combat the problem of contraband tobacco.

We do not want to target individuals, such as a young person who has contraband tobacco on their person. That is not what we are talking about. As my colleague from the Liberal Party mentioned, we are talking about organized crime and very serious traffickers who are involved in all kinds of other illegal trafficking.

I will begin by talking about the technical parts of this bill and some of the changes that would occur. I also want to talk about what Public Safety and the RCMP are doing in terms of the new unit we committed to in 2011, which is being formed right now.

Bill S-16 is another part of our government's plan for safe streets and communities. It focuses on tackling crime and putting victims' rights ahead of criminals. We are setting the conditions for fair and efficient justice.

The bill proposes to amend the Criminal Code to create a new offence of trafficking in contraband tobacco. This new offence would carry penalties that would better reflect the harm caused by the trade in contraband tobacco. Specifically, the bill would impose mandatory minimum penalties of imprisonment for persons who are convicted of this offence for a second or subsequent time. It would not be for the very first criminal offence, and it certainly would not be an offence charged under the Excise Act. A second offence would be under Criminal Code charges.

The proposed new offence against dealing in contraband tobacco would prohibit the sale, possession for the purpose of sale, offer for sale, as well as the transportation, delivery or distribution of a tobacco product or raw leaf tobacco that is not packaged unless it is stamped. The terms “tobacco product”, “raw leaf tobacco”, “package” and “stamps”, would have the same meaning as they have in section 2 of the Excise Act, 2001.

A first-time offender convicted under the new offence would face a maximum penalty of six months' imprisonment on summary conviction, and up to five years' imprisonment if prosecuted on indictment. Repeat offenders convicted of this new offence involving large amounts would face mandatory minimum penalties. In cases involving 10,000 cigarettes or more, or 10 kilograms or more of any other tobacco product or raw leaf tobacco, a second-time offender would face a mandatory minimum penalty of 90 days' imprisonment. A third-time offender would face a mandatory minimum penalty of 180 days, and a person convicted of a fourth offence or more would face a mandatory minimum penalty of two years less a day.

We believe this provides a very balanced approach. It is not an overly harsh approach, but one that certainly provides new legislation and tools that law enforcement need in order to combat contraband tobacco trafficking.

Bill S-16 would also amend the definition of Attorney General in the Criminal Code so as to give the Attorney General of Canada concurrent jurisdiction within the provinces to prosecute this new offence. Again, the Excise Act only applies federally. This would give provincial police the ability to lay these same types of charges under the Criminal Code.

I believe these proposals represent a tailored approach to the imposition of mandatory minimum penalties for serious contraband tobacco activities. The bill proposes minimum penalties only in cases where there is a specific aggravating factor, and that would be the quantity of tobacco product.

Contraband tobacco threatens the public safety of all Canadians, our communities and our economy. Many people think it is a victimless crime, that it is individuals wanting to buy cigarettes for less money. However, that could not be further from the truth.

There is a huge organized crime aspect to contraband tobacco, and it threatens all of us, certainly our children and our young people. It also has implications for relationships with our international partners, especially the United States. The trade in contraband tobacco fuels the growth of organized criminal networks and is attacking the health of our Canadian youth.

We only need to look at the closest schoolyard to see that impact. When we look at areas where schools have designated a smoking area, it is sad to say that there was a time when that was going down, but it is evident that more and more young people are starting to smoke. We even see smoking in the media and in Hollywood movies, even though smoking is taboo. Sadly it seems that more and more young people are smoking, and contraband tobacco only feeds that.

A study conducted in 2007, 2008 and 2009 on the proliferation of contraband tobacco at high schools in Ontario and Quebec reveals that nearly one-third of the cigarettes found at Ontario high schools and over 40% of those at Quebec high schools were contraband products. That speaks volumes about the problem that contraband is tobacco is causing and the impact it is having as far as young people beginning to smoke.

We also know that studies show if young people begin smoking at an early age, it is much harder for them to quit. It is much harder for them, even as adults who may want to stop smoking. It becomes very difficult. We can see by the evidence that contraband tobacco is certainly fueling the proliferation of our young people who are smoking.

Obviously a problem of this magnitude requires a comprehensive set of responses, as I said at the beginning of my speech. Bill S-16 contributes to this response by strengthening our criminal law framework's response to trafficking in contraband tobacco. Bill S-16 is only a part of the government's broader response to combat the trafficking and cross-border smuggling of contraband tobacco.

Another key element of our response is the establishment of a 50-officer RCMP anti-contraband tobacco force. This was the commitment we made in 2011 and we are following through on this commitment. This new force builds on the existing RCMP strategy, which focuses on reducing the availability of and demands for contraband tobacco, and again, the involvement of organized crime that plays such a big role in the contraband tobacco problem in Canada.

Another critical part of our broader, law enforcement response is the fact that the RCMP and Canada Customs have seized record quantities of contraband tobacco.

As I mentioned earlier, organized crime plays a central role in Canada's contraband tobacco trade, with the result that most of the organized crime groups across the country involved in illicit tobacco markets are also involved in a number of other forms of criminality. It is never just one contraband product that they are trafficking; they are usually involved as well in other banned illegal substances, guns, and the smuggling and trafficking of humans.

The problem is further complicated by the international aspect of the illicit tobacco trade. On this issue, it is important to recall that Canada and the United States share a long history of law enforcement co-operation. Recent and ongoing threat assessments have identified organized crime as the most prevalent threat encountered at our shared borders. As we work together with our partners and with our friends to the south of us, we recognize that the problems that we have at the borders, and indeed smuggling of guns, tobacco or whatever might be smuggled, is primarily done by organized criminals in Canada and the U.S.

This includes significant levels of contraband trafficking, as I said, ranging from illicit drugs and tobacco to firearms, primarily handguns. Handguns are the primary firearm that is being trafficked and used in organized crime activities. I mentioned human smuggling, which is sadly becoming a greater problem. Our government is certainly addressing human smuggling and even human trafficking.

Recognizing our mutual interest in the security of our shared waters on the coasts, the Great Lakes and the St. Lawrence Seaway, Canada and the United States explored the concept of integrated cross-border maritime law enforcement operations. Commonly, this has been referred to as the shiprider agreement. It would permit marine law enforcement vessels to be jointly crewed by specially trained and designated Canadian and American law enforcement officers who are authorized to enforce the law on both sides of the international boundary line in the course of integrated cross-border operations.

Again, this represents a very practical and efficient solution to illegal activity at our borders, especially in our waterways. It would give law enforcement authorization in America but primarily in Canada. We are obviously looking to the Canadian side, where we would be able to work together with our partners to combat this problem, as well as other organized illegal activity that could happen at the border. Designated law enforcement officers from the RCMP and the United States Coast Guard, and other law enforcement agencies from Canada and the U.S., would now be able to conduct seamless policing operations to disrupt organized crime and criminal activity at the border.

Canada and the United States piloted a project between the RCMP and the U.S. Coast Guard that authorized integrated cross-border maritime law enforcement between these two organizations.

The shiprider pilot project had immeasurable impact upon cross-border criminal activity, including removing the border as an impediment to effective border policing. Again, this is a very practical and very efficient way of border policing. For example, during the 2007 pilot project, the RCMP and the U.S. Coast Guard officers participated in more than 187 boardings, which resulted in the seizure of 1,420,000 contraband cigarettes.That is a huge number of cigarettes that were intercepted and stopped because of the pilot project, which has been very effective.

A framework agreement to govern deployment of regularized shiprider operations was signed in May 2009, following the successful pilot project. Legislation seeking to implement the agreement was enacted in 2012.

Today, the contraband tobacco market is largely driven by illegal operations in both Canada and the U.S. Ontario and Quebec have the highest concentration of contraband tobacco manufacturing operations, the majority of the high-volume smuggling points, and the largest number of consumers of contraband tobacco. Certainly, members of Parliament from both Ontario and Quebec will be recognizing this as a problem in each of their provinces. However, we do recognize that it is a national problem to be addressed at the national level.

Locally, there is so much that can be done. We are working together with law enforcement in both provinces, the RCMP team as well as other integrated teams but, legislatively, we have to address it at the national level in order to be able to look at the areas where it is growing and address those problems.

The 2012 national threat assessment on organized and serious crime, prepared by Criminal Intelligence Service Canada, has identified 58 organized crime groups which are involved in the contraband tobacco network. We are not just talking about somebody going across to the United States, buying cheap cigarettes and bringing them back for their relatives or selling them to neighbours. We are talking about a very serious problem. If we do not deal with it as a criminal activity, it will continue to grow.

I know we appreciate the involvement of stakeholders that also recognize this problem. That is why we have introduced this legislation.

These criminal networks reinvest profits from the manufacture and distribution of contraband tobacco into other forms of criminality, including the trafficking of illicit drugs, firearms and human smuggling.

Furthermore, and again this is a key part of this issue, the RCMP reports that violence and intimidation tactics continue to be associated with the contraband tobacco trade. As any organized criminal activity will prove, there is an increase in violence, in the threat to public safety and other criminal activity associated with this.

The federal government launched the RCMP's contraband tobacco enforcement strategy in 2008. They worked together.The contraband tobacco enforcement strategy focuses on reducing the ability of, and demand for, contraband tobacco, and the involvement of organized crime.

In addition to the enforcement measures of this strategy, the task force on illicit tobacco products was formed to identify concrete measures to disrupt and reduce the trade in contraband tobacco. We worked together with our partners and other agencies throughout the country. This task force brought together a number of different facets and stakeholders, and law enforcement to look at how we reduce the demand for, stop the production of, and disrupt the illegal activity surrounding contraband tobacco.

Based on the recommendations of the task force, the Government of Canada announced in May 2010 an investment of $20 million for a series of measures to disrupt the supply of and demand for contraband tobacco. Again, I know the opposition talked about resources to do this. We are really taking a very strong, measured approach where we have the legislation that we need but we are also providing resources to tackle this problem. That is the way we have to look at it; we cannot just come at it from one angle but from a number of levels.

These measures are paying off. Since the inception of the contraband tobacco enforcement strategy in 2008 and up to May 2012, the RCMP has laid approximately 4,925 charges under the Excise Act, 2001, and disrupted approximately 66 organized crime groups involved in the contraband tobacco trade throughout Canada. Again, this is paying off.

There is still more work to be done, but we can see that the RCMP is able to target, intercept and stop this activity. What they need now is an ability to charge under the Criminal Code and to have mandatory minimum sentences for repeat offenders and those who are trading in large quantities of tobacco.

During that time period that I mentioned, approximately 3.5 million cartons or unmarked bags of cigarettes were seized nationally by the RCMP, along with numerous vehicles, vessels and property. Those numbers are staggering, when we think that that number of cigarettes is being sold illegally, getting into the hands of our children, sometimes tainted with who knows what, as my colleague has mentioned. There are so many problems surrounding contraband tobacco. We can just look at the numbers: 3.5 million cartons sized by the RCMP.

We are proud that the strategy is having an effect. Again, we believe that this bill will just add another layer of strength to the contraband tobacco enforcement strategy.

Taken together, these initiatives are having a measurable and positive impact on reducing the contraband tobacco market. It is clear that the illicit tobacco market is dominated by criminal organizations, motivated by the lure of significant profits and relatively low risk.

Enforcement actions are therefore directed at increasing the risks associated with contraband tobacco activities, dismantling illegal manufacturing facilities, disrupting the supply lines, apprehending key figures, confiscating conveyances such as trucks and boats, and seizing the proceeds of crime. Again, it is a whole strategy where, piece by piece, law enforcement can take apart the organized crime element of the contraband tobacco activity. These actions will achieve a disruption in the flow of illicit tobacco and weaken the organized crime groups involved in the production, distribution, smuggling and trafficking of contraband tobacco.

To achieve these goals, the RCMP has engaged in joint targeted initiatives with law enforcement partners and other stakeholders across Canada and even, as mentioned earlier, internationally. These initiatives range from short-term to long-term investigations, from simple to complex, and include varying awareness campaigns.

While we do recognize we have made gains, we also do realize that as legislators we need to do more. We need to make sure that Bill S-16 passes, that criminal activity is indeed targeted, and that there are mandatory minimum sentences associated with organized crime for individuals who are trafficking large quantities of contraband tobacco.

I move:

That this question be now put.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr. Speaker, I want to thank the parliamentary secretary for her speech.

The NDP and I recognize that cigarettes and contraband cigarettes are a scourge. We have seen some disturbing statistics on the rise in this type of trafficking.

However, the Excise Act, 2001, and the Criminal Code already cover all these offences. Bill S-16 seems to be redundant.

I would like to know why the government decided to introduce Bill S-16 instead of reviewing and enforcing the comprehensive laws that are in effect, such as the Excise Act, 2001, and the Criminal Code. What is the motivation behind Bill S-16?

[Candice Bergen, Conservative, Portage—Lisgar, MB]

Mr. Speaker, currently under the Excise Act, there are limitations whereby charges can be laid and penalties can be imposed. When Bill S-16 passes, for example, even if there were 10 Excise Act convictions in an accused person's past, if there were no prior Criminal Code convictions, a mandatory minimum penalty could not be sought.

That is why this law is important. If somebody is trafficking or in possession of not just small amounts, but large quantities of tobacco, as I laid out in my speech, and it is clear that they are trafficking large quantities, under the new law a new provision would be within the Criminal Code that would allow for further penalty.

I want to let my hon. colleague know about the other thing it would do. The Excise Act right now is a federal act, so it could be implemented federally, but the provinces are limited and provincial law enforcement has limitations. When we have this specific and very tailored offence and we make sure that it is not an overly draconian penalty, it gives provincial law enforcement officials an extra tool. They can still charge under the Excise Act if they see it is fitting, but they would now have the Criminal Code as well.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I think all of us in the House have had contact with people, whether family, friends or co-workers, who have struggled with or are struggling with an addiction to tobacco. I think all of us want to do what we can to minimize the possibility of that addiction.

It is obvious from the research that many times the people who are addicted, some of whom have overcome it and some of whom have not, have been caught very early in life. I felt that one statistic that my colleague shared was very important, and I would just like her to repeat the percentage of cigarettes that are found on high school grounds. A very high percentage of the butts there are from contraband tobacco.

I wonder if she could just repeat that statistic, because I think it indicates the seriousness of the situation and the importance of our taking action on this matter.