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]

Well, the Liberal Party member at the committee was grateful for that and we made a significant difference. We did hear from the NDP on the same thing. However, our House has offered on a number of occasions recently that we would take a number of spots.

The Liberal Party was offered a number of spots. This was not a secret. It was presented in the House. A number of spots, which was significantly more, maybe seven to 10 times more than the other two parties, were offered to move things forward so that we did not have to move time allocation. That was rejected. Why was that rejected? I do not know why.

I have no issue on bills on which I think there is a significant political difference. However, this bill, and I am using it as an example, I think everyone in the House would like to see go to second reading so that they can have witnesses, have a discussion and move forward on it. We may not completely agree to it in the end, but this is at second reading.

There is an opportunity to move this forward. In my view, that would give us opportunities, in terms of the time frame, since we only have so much time in the House to debate issues, for other more divisive issues.

Listening to the speeches today, everyone has been pretty much in favour of getting this to second reading. To be frank, as a backbencher, I do not know why time allocation had to be an issue. We should all have been able to agree to a different number of time slots. However, that did not happen.

My hope for the fall is that everyone, from all sides, will work together to make sure that bills on which there is general agreement, at least to go to second reading, we will be able to move forward. Bills on which we have a more fundamental difference of opinion we would spend more time on. After seven years of being here, that has been my frustration as an individual member of Parliament. There have been some issues in that area.

I am looking forward to the bill going to second reading. As chair of the justice committee, I am looking forward to getting that organized early in the fall. This will be one of the first pieces of legislation we will deal with. I am looking forward to learning what people and different organizations believe this will do. I am also looking forward to our coming together as a Parliament and promoting this so that we can get the task force in place to target organized crime, go after these issues and make a difference.

The RCMP is an excellent choice to be doing this. I know that there was talk about the Canada Border Services Agency and their role here, and they do have a role. However, I think when we, through this bill, put an emphasis on the fact that it is a criminal offence and that the nation's police force is in charge of that task force, it gives it the authority, the significance and the attention it needs.

I am looking forward to supporting the bill going to committee. Hopefully, it goes to my justice committee, we have a great discussion on it and we get it passed early in the fall.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, I really enjoyed the hon. member's speech. There was a moment of clarity and honesty we have been looking for all day. It was kind of missing in question period, but it was really nice to see. I do not even know what number we are at right now when it comes to time allocation motions on these bills.

[An hon. member]

Forty-six.

[Scott Andrews, Liberal, Avalon, NL]

It is 47.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Is it 46? Anyway, they keep coming.

I have two questions. From all the speeches we have heard today, we are all on the same page. This is important, and we have to move forward. If this was so important to the Government of Canada, I am wondering why this came from the Senate, which is unelected and full of scandals.

Second, is there going to be more financing for local police stations moving forward to actually make a difference and combat contraband tobacco?

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, we have had a very full legislative agenda, and this is one item. There is nothing wrong with legislation being introduced in the other place and brought here. It speeds things up. It makes things more efficient and effective.

On that point, the member opposite should ask her House leader why New Democrats did not agree to a certain number of speaking slots and agree to move this bill forward. It would be a very good question for the member to ask her own House leader.

I am looking forward to the report from the RCMP task force to see what resources are needed to solve this problem.

[John Rafferty, NDP, Thunder Bay—Rainy River, ON]

Mr. Speaker, I certainly appreciated the comments from my friend from Burlington. I want to assure him that New Democrats really do like him.

He was talking about suggestions to make things better. I am glad the minister is here today.

Like most members, we spend a lot of time with our constituents in coffee shops and that sort of thing. I wanted to pass along very quickly a suggestion made by an elderly gentleman I have coffee with whenever I can. He said that for contraband tobacco, most of the issue is with first nations, so why not give first nations the ability to tax that particular product. Then the price would go up. I did not really have any comment of my own on that. It was quite interesting. After I thought about it for a bit, I thought that would show that the government was also moving forward on self-government. There is a further side to that.

I do not really have a personal comment on taxation, but I wonder what the hon. member might think about that.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I thank the member for meeting with his constituents and discussing different issues, which we all do. We all get input on a variety of issues.

I can honestly say that I have not heard that suggestion before. I am not fortunate enough to have a large native population in my riding. There are no reserves in my riding. I have not heard about the issue of taxation, but I think this issue is more than about taxation. It is about more than whether the government is losing out on taxation on the sale of cigarettes. There are more important issues. Making this part of the Criminal Code, making the trafficking of this particular drug illegal, sends the message that this is a health issue and not just a tax issue.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, I listened with great interest to my hon. friend's speech. It was a very thoughtful, candid speech. I want to ask him two things.

First, the opposition is calling for more thought and consultation on the bill. In terms of consultation, I would like to know who the member thinks we should be consulting with. Is it the smugglers? I would ask him to answer that question.

Second, the NDP seems to be putting forward the spin and misrepresentation of facts in terms of the resources committed to Canadian border services. Since 2005, we have seen a 27% increase in financial resources given to Canadian border services and a 26% increase in the number of employees in Canadian border services. We have the resources, both financially and in terms of employees who are available to interdict contraband tobacco or other products that come across the border.

I wonder if my hon. friend could address those two questions.

[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 different 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 is 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, 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.