In our tobacco advisory committee negotiations we had a two-price system. Domestic tobacco for consumption in Canada was higher priced, and we had an export price for shipping tobacco to other countries.
Tobacco health policy has been a high-priced product for the Canadian consumer. In my community, 20 miles from where I live, there is a carton of cigarettes available in a clear plastic bag for $7, and it's up and down the roads on native reserves. How do we help our manufacturers and ourselves, as growers, when this is happening? Clearly the taxation policy is not getting all of that tobacco. And after 9/11, nobody can tell me that it can't be tracked if it's coming across our border. Clearly we have to change that point of taxation to cover this.
Native producers have legitimate treaty rights, and I recognize them and we support them. But can we identify other things to get tobacco back in control?
There are three components in a cigarette: you have the paper, you have the filter, and you have the actual tobacco. It's pretty simple. Let's get it all covered so we actually know what is being produced and what's being consumed.
Right now, $1.5 billion that's not being collected is a huge problem for us as growers, because the manufacturers are identifying that if they're going to be allowed to do it, then we have to compete in a price war.