Tackling Contraband Tobacco Act

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

This bill is from the 41st Parliament, 1st session, which ended in September 2013.

Status

In committee (House), as of June 13, 2013
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Similar bills

C-10 (41st Parliament, 2nd session) Law Tackling Contraband Tobacco Act

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other S-16s:

S-16 (2024) Law Haida Nation Recognition Act
S-16 (2004) First Nations Government Recognition Act
S-16 (2004) An Act to amend the Copyright Act
S-16 (2003) An Act to amend the Constitution Act, 1867 and the Parliament of Canada Act (Speakership of the Senate)
S-16 (2001) Law An Act to amend the Proceeds of Crime (Money Laundering) Act

Votes

June 13, 2013 Passed That, in relation to Bill S-16, An Act to amend the Criminal Code (trafficking in contraband tobacco), not more than one further sitting day shall be allotted to the consideration at second reading stage of the Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:40 p.m.

Conservative

LaVar Payne Conservative Medicine Hat, AB

Mr. Speaker, I listened intently to my colleague's comments.

Certainly, we did have an interesting committee session. We visited various communities across Canada and listened to people about what they are doing.

I was also listening when the member talked about the cuts to CBSA. I believe the member was present when the Minister of Public Safety was at our committee meeting. I do not have his exact words, but he did say that there are no cuts to front-line officers. Therefore, I know the minister indicated they were looking for efficiencies.

I wonder how the member could suggest that the CBSA had cut front-line officers.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:40 p.m.

NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Mr. Speaker, I will say again how much I enjoy working with the member for Medicine Hat on committee. I find him to be a very sincere and dedicated MP, even though we do not agree 100% of the time. A case in which we do not agree is on the statement by the minister that there are no front-line cuts.

I will be very careful how I phrase this in the House because I cannot accuse the minister of deliberately misleading the House. However, I will say that when we met with the union and talked about what has actually happened in the CBSA, they told us about the number layoff notices that had been given out. It is difficult to square the layoff notices with the statements of the minister in committee.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:40 p.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Speaker, the member for Esquimalt—Juan de Fuca made a very thoughtful and reasoned speech. I am so delighted that I was able to hear him.

As the official opposition finance critic, I certainly am familiar with the austerity measures of the Conservative government and the many cuts it has made to various departments, programs and services. It is extremely difficult not only for ourselves, but also for the Parliamentary Budget Officer to get the details on these things. In fact, there is an ongoing court case on this matter.

I have to say how distressing it is to hear that 50% of the contraband tobacco is coming in through the port of Vancouver and that there are thousands and thousands of containers that are not inspected. I am from the city of Toronto. I see the rail yard and the thousands of containers there, and the member is telling me there is one inspector who is probably doing spot checks in reaction to problems that are highlighted.

In light of the very serious challenges that contraband tobacco has with respect to our children's health, and not even knowing what could be in contraband tobacco as the member rightly pointed out, does he believe we should have complete upfront access to all of the information about the CBSA so we can see person by person, city by city what the representation is?

As Canadians we want to be assured that we are not cutting border security services. We want to make sure that these products are stopped from entering our country. It sounds as though we should be beefing up our border security agency.

Could the member respond to that please?

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:40 p.m.

NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Mr. Speaker, I thank the member for Parkdale—High Park for her compliment on my speech. Of course, I want to return the compliment on the excellent work she does as our finance critic.

I know the member is as disappointed as I am to see the party on the other side, which came here dedicated to accountability vote against our leader's private member's bill that would have given full independence to the parliamentary budget officer so that we could actually get at the facts. Rather than stand here in the House and debate numbers that are uncertain in many ways, with one side saying what they really are and the other side saying they do not like it, the parliamentary budget officer, as an officer of Parliament, would provide that to all of us. We could then get down to debating the reality.

The other thing I would say is that we try to be very consistent on this side in saying that we do not oppose spending money on law enforcement. We think it is much better to spend it there than on lengthy imprisonment or mandatory minimum sentences. Let us spend at the front end on enforcement where we would actually build safer communities and increase the security of all of our citizens instead of just spending the money at the back end of the process by putting more people in jail for longer periods of time.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:45 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I thank the member for Esquimalt—Juan de Fuca for his excellent speech. We are friends and neighbours in southern Vancouver Island.

He talked about the front-line cuts with respect to border service agents. That is a key component as we look at this bill.

The other piece that I am looking at is the cuts that have taken place in tobacco awareness, addiction awareness and working on a preventative health basis. I am going on memory, but I believe that one of the first round of cuts was in the spring of 2006. There were cuts to tobacco awareness and addiction programs in first nations communities. There have been other cuts as well on this.

I wonder if my hon. colleague has some thoughts about a more holistic response. We have to reduce the problem of addiction to cigarettes while we also fight the contraband cigarettes.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:45 p.m.

NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Mr. Speaker, I do not have the figures in front of me, but I too remember there were lots of cuts in the preventative health measures. That is a great concern.

Again, I cite the example of Prince Albert, which has this hub model, where they bring addictions counsellors to the table with the police and other social service agencies. Instead of imprisoning people, let us get them into a treatment or addiction program.

The same kind of parallel applies with contraband tobacco. If we reduce the demand for tobacco, we obviously are going to make the battle against contraband tobacco easier, and we are going to have a healthier population as well.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:45 p.m.

Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

Mr. Speaker, the member is a true gentleman. I can say this having dealt with him in committee. Even in his debates in the House, he always tempers his words in a way that we should be very proud of, and that every one of us should take heed of.

When we talk about trusting judges, there have been changes made to the Criminal Code for over 140 years. Penalties have changed and usually are increased.

When he says that we need to have more people in enforcement, this bill would put 50 additional RCMP officers directly on this illicit trade.

When he talks about how we do not know what is in the cigarettes, I agree with him. We know that in legal cigarettes, there are 4,000 chemicals and 70 of those are known to cause, initiate and promote cancers. When he talks about our young children smoking, he is definitely right. When he talks about second-hand smoke in relation to breast cancer and cancers among women, it is a proven fact that tobacco is one of the leading causes of breast cancer. It is young women who are actually being enticed into this terrible tobacco addiction.

There is an argument in that he says that the union says one thing and we say that the minister says something else, and who is right. I agree with him that it all depends on one's perspective.

With regard to time allocation, I do not know how to say this more strongly and yet remain within the bounds of being parliamentary. This Parliament and previous parliaments have looked at organized crime. I remember that study. I was on the committee. We talked about tobacco. We know where it is coming from.

All the good member has to do is visit my riding. In a small first nations territory of 430 people, he will see at least seven outlets on the main road and gosh knows how many on the side road. He is right about illegal tobacco coming in from other countries, but he also neglected to mention—

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:50 p.m.

The Acting Speaker Bruce Stanton

Order. I do not mean to cut off the hon. member, but we need to leave some time for the hon. member for Esquimalt—Juan de Fuca to respond.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:50 p.m.

NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Mr. Speaker, I thank the hon. member for the summary of my speech. Because there was so much in there, I get to pick and choose which things I want to reply to.

For me, the most important question is the one about numbers. He said that the minister says one thing and I say another. All of us get frustrated by those kinds of debate. When we talk about the loss of front-line officers and we talk to the union, we are talking about the actual number of letters issued by the CBSA to people saying that their job is being affected and that they may lose their job.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:50 p.m.

Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

May.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:50 p.m.

NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Well, if nobody is going to lose their job, why would they issue the letters?

The minister said “may”, but the letters indicate that people are going to lose their jobs. The union is working from real letters issued about real layoffs that are occurring in the CBSA.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:50 p.m.

NDP

Rosane Doré Lefebvre NDP Alfred-Pellan, QC

Mr. Speaker, first of all, I would like to thank my hon. colleague from Esquimalt—Juan de Fuca for his absolutely amazing speech.

Before he even began speaking, I jotted down a question on my paper. There is a tendency to think that contraband tobacco comes primarily from first nations. I am glad he gave an overview of the situation and dispelled that myth.

According to an article published in national media outlets a few months ago, some estimates suggest that not 50%, but closer to 90% of illegal tobacco in Canada comes from China. That is a huge proportion. This illegal tobacco is entering Canada through British Columbia, where my colleague is from.

I completely agree that we absolutely must examine this problem in committee. However, are there not better ways to invest our resources? Could we not go a little further and do more?

I think everyone here wants to act in good faith. However, I feel as though we are getting away from the crux of the issue. I wonder what my colleague thinks about that.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:50 p.m.

NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Mr. Speaker, I think the member for Alfred-Pellan, with whom I work as the deputy critic of public safety, is doing a fabulous job in that critic portfolio.

I missed the article that said it was 90%. I was going on my conversations with tobacco companies which said it was at least 50%. I would not be surprised if it was 90% coming from China, because it is a huge illegal industry in China to start with. When they see an opening, such as the uninspected containers in Vancouver, I am sure they will shove as much product through that opening as they can.

Again I come back to the fact that we are talking about health. We are talking about the health of young people, the health of kids, the health of young women and the connection to breast cancer. It is important that we attack the right part of the problem.

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 4:50 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Mr. Speaker, it is my pleasure to speak today to Bill S-16, An Act to amend the Criminal Code (trafficking in contraband tobacco) and the proposed amendments to the Criminal Code to create a new offence of trafficking of contraband tobacco.

I have been here for most of the day listening to the speeches on Bill S-16. As chair of the Standing Committee on Justice and Human Rights, it is my understanding the bill will go to the justice committee for review and just as we reviewed Bill C-54, we accepted amendments from both the Liberal Party and the New Democratic Party last night. Today I tabled the report in the House. It was well analyzed with a number of witnesses, From those witnesses, a number of amendments were proposed and in fact accepted. The amendments from the Conservative Party, the Liberal Party and the New Democratic Party all passed.

Bill S-16 started in the Senate and we are debating it at second reading right now. There will be a vote, hopefully in the very near future, and Bill S-16 will move to committee where a number of the questions that have been asked today will be properly vetted with witnesses and bureaucrats who are responsible for implementing these changes so we understand what the effect will be on the Criminal Code.

The bill would provide mandatory minimum penalties of imprisonment of persons who are convicted for a second or subsequent time of this offence. It is important for everyone to understand that the mandatory minimum approach we have taken on a number of bills is important to give gravitas to the issue in front of us.

It is very important that we send a message to those who are in the business of contraband tobacco, whether they are traffickers, or selling it in small components to individuals, that it is illegal. It was indicated earlier that those who were in the business of not obeying the law often took into account what the penalties would be and used that as part of the cost of doing business. If there are no mandatory minimums, just fines, they price that risk in their product. They will decide what risk level they are willing to take.

It is important, not just in this case, but in many cases that the Government of Canada look at mandatory minimums, and we are doing it in this bill, so we let those who are willing to break the law and circumvent it know that there is a real penalty to be paid, a much more difficult penalty they cannot include in the cost of doing business.

I am fully in favour of mandatory minimums and in this case new mandatory minimums for this new level of offence. I believe it is fair. We are saying that it only will apply after people's second offence. Let us say, for argument sake, that individuals who make a mistake, are caught up or there is peer pressure, whatever the issue might be and they become involved with contraband tobacco. There is no mandatory minimum for that. However, if people make the mistake twice, they have consciously made that effort. They have built in the cost of making that mistake the first time and are now doing it another time.

It is time for the Government of Canada, through the Criminal Code, to say to them that they knew what they were doing. They broke the law and faced a penalty previously, but now they face a much more severe one with a mandatory minimum. I have no issue with that. My true belief is that the vast majority of the people of Burlington also believe in mandatory minimums.

There is another very important piece to the bill. As member of Parliament, every two or four years if we are in a minority position, we have a platform. Every party has a platform. We go to the people and talk about what we will accomplish if they give us the confidence to form government.

Fortunately for us, in 2011 the public gave the Conservative Party of Canada a majority in the House of Commons. Part of that decision-making of the people of Burlington and the rest of Canada was our platform. What did the party stand for?

There are certainly other factors. There is the leader, the policy of the party, the platform during an election and the individual candidate. I would hope that some people in Burlington voted for me because they liked me, but I cannot prove that. It might be my wife and maybe my daughter, but I cannot prove that either.

People talked to me during the election about the platform and what we were proposing to do if we formed government. Part of that 2011 election platform was a commitment to reduce the problem of trafficking of contraband tobacco by establishing mandatory jail time for repeat offenders of trafficking in contraband tobacco.

It was clearly stated in our platform. In fact, part of my literature and part of the campaigning I did included a discussion on mandatory minimums. This was part of what we promoted.

That was two years ago. Some people think it has taken us a while to get here. I do not hear much about in my riding, but my colleagues in caucus were persistent that we needed to move on this, that it was a real issue for them in their ridings. It could be an issue in my riding of which I am not aware.

I am fortunate enough that I and my wife are non-smokers. My two daughters who are young adults are non-smokers. They will have a number of their peers over to our house. There could be as many as a couple of dozen and there are no smokers in that group. I do not have the exposure to that. However, I have been told that it is an important issue at the high schools in my area.

We have the ability to look at what we promised during the election and what we are able to deliver to the people of Burlington and to the rest of the people of Canada. We are moving on that. It took some time. I think we took the appropriate amount of time to look at options to tackle this problem.

This is not an easy problem to tackle. As we have just heard, there are a number of sources for contraband tobacco. It could be offshore or domestic. It could be from south of the border. The sources are difficult. The ability to track and find these sources is a difficult one for police and border services officers.

We promised mandatory minimums in our election platform. We have brought forward some legislation that will meet the commitment we made to the public. We have also said that we cannot just put mandatory minimums in without providing some resources to ensure we can implement them. That is why we have created a special task force, I believe it is up to 50 officers from the RCMP, to tackle this problem.

Having 50 officers will not end the problem overnight, but it is a great start for us to tackle this issue. It has put a focus on the problem that we have been having in our country and, in particular, in certain parts of Ontario to a greater extent than others. It has affected not only certain ridings based on production, but also the distribution. A number of small business owners have come to me and have sent me letters. I have had them in my office talking to me about what this is doing to their businesses.

I am not a proponent of smoking. My mother-in-law had lung cancer. She has had one lung removed. She was a smoker. She has been very fortunate as she is a survivor of cancer. Her lung cancer was over 12 years ago and she lost her brother to lung cancer through smoking. Therefore, smoking, from our family's perspective, is very much frowned upon. We have been lucky that, through the health system, she went on some experimental drugs and her cancer was cured, and we are very grateful for that. We are not big proponents, and that is why I am very much in support of this bill.

I started the conversation of there being mandatory minimum sentences. Let us be honest, some are more significant than others. For those caught in the trafficking aspects, it is up to six months. If it is an indictable offence, it is up to five years. It is significant and I do not deny it. However, it is a significant problem that these individuals have created. We talked about the cost to the health care system and so on, but to me personally it is not about the cost to the system, it is about protecting people's health when contraband tobacco products hit the market.

We know cigarettes are better regulated, produced and properly labelled by a licensed facility. We know they are a health issue. People are well warned on the packaging, which we have increased as a government. It is not any surprise to anyone at any age that these are health hazards. However, the health hazards of tobacco products that are not labelled, and we do not know where they came from and what is in them, are tenfold what the legitimate cigarette producers ensure on those warnings. We have not a clue what is in those other products. That is why we need these penalties to be significant and severe, and I believe this bill would do that.

We have heard from other members today. I do not want to repeat the number of cigarettes that are involved or the kilograms. That information has all been put forward.

The other thing I would like to talk about is why we are moving on this. There was discussion about time allocation on this bill. I believe it is a two-way street in the House, maybe even three-way if there is such a thing. We need to start to work together. We had an example yesterday where we looked at Bill C-54. We had amendments proposed by the opposition. The vast majority of them did not pass, but we did accept one from each party. We have seen—

Tackling Contraband Tobacco ActGovernment Orders

June 13th, 2013 / 5 p.m.

Wayne Easter

Wow.