Health Committee on June 20th, 2011

[The Chair, Conservative, Joy Smith]

You have a couple of minutes more if you'd like to use them, Mrs. Block.

[Kelly Block, Conservative, Saskatoon—Rosetown—Biggar, SK]

Okay.

I was reading through the different pieces of the regulations that were tabled. I was looking at the promotion of tobacco products and accessories regulations and the prohibited terms.

Could you comment about the terms, “extra”, “ultra”, “light”, and “mild”, and the impact the use of those words might have when an individual is contemplating trying to quit smoking? Are they misleading? Where do they fit in terms of a tobacco strategy?

[Rob Cunningham]

The terms “light”, “mild”, “ultra-light”, “extra-light”, “extra-mild” are misleading. They've been part of a strategy to reassure smokers, and there's been a perception created by tobacco industry marketing that these are significantly less harmful than “regular” cigarettes. Unfortunately, many people have switched to these brands instead of quitting altogether.

There is now an international recognition that these terms are deceptive. It's cited in the international tobacco treaty, the Framework Convention on Tobacco Control. At least 50 countries have prohibited these terms specifically, and three major companies in Canada and a number of smaller ones, following an investigation by the Competition Bureau, have entered legally enforceable settlements to have these terms removed from their brands. These regulations will put this into a regulatory form to cover those companies that are not yet subject to such agreements.

[Kelly Block, Conservative, Saskatoon—Rosetown—Biggar, SK]

Thank you very much.

[The Chair, Conservative, Joy Smith]

Thank you, Mrs. Block.

Are you finished your questions? Okay.

With the committee's permission, can I ask a question of the witnesses? Is that okay with everyone?

[Some hon. members]

Agreed.

[The Chair, Conservative, Joy Smith]

Thank you.

Mr. Haslam, I was very interested in what you said about your company. It sounds like a rather gloom-and-doom picture if the six months' deadline is there. You make $70 million in sales in Canada?

[David Haslam]

Yes.

[The Chair, Conservative, Joy Smith]

Is labelling cigarettes your only source of income?

[David Haslam]

No. I explained before that 25% of our gravure business is through tobacco packaging; 75% is for general packaging--candy and chip packets, beer labels, you name it. We do all the different types of packaging through that process. One part of our business is gravure-intensive, and 25% of that one business is tobacco-related.

[The Chair, Conservative, Joy Smith]

So you do have other sources of revenue, rather than having your company being forced to go to the U.S. based on this?

[David Haslam]

Yes.

[The Chair, Conservative, Joy Smith]

I just wanted that clarified. Thank you.

We'll now go into the second round, with five minutes for questions and answers.

We will begin with Madam Quach.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Thank you, Madam Chair. I want to thank all our witnesses. My question is for Rob Cunningham.

We know that the tobacco industry produces 40 to 50 billion cigarettes annually. Regarding everything you said about the impact of the words “mild” and “light” on consumers, do you have with you any statistics on the sales of those products? For instance, is it known how many consumers buy products branded “light” or “mild” compared with other product brands available on the market?

[Rob Cunningham]

Today, about 2% to 5% of products include the word “light” or “mild” in their name.

There are also issues associated with the colours on cigarette packs. Who uses them? It is somewhat misleading. Some companies have used substitute words. That will not eliminate the misleading element, but it will certainly reduce and eliminate certain misleading words on the packaging. Therefore, we support that regulation.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Do those words have a greater impact on young people or older people?

[Rob Cunningham]

I think they have an impact on adults and young people. Many young people are trying to stop smoking. It is difficult for teenagers to reach that goal. Young people are affected by the misleading message of “light” or “mild” cigarettes. Therefore, the regulation will have a positive impact on those two groups.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

My next question is still about the words “mild” and “light.”

Mr. Clayton, could you answer it? Have the sales of “mild” and “light” products increased over the last few years?

[John Clayton]

The terms you're referring to, “mild” and “light”, through an agreement with the Competition Bureau that Mr. Cunningham mentioned just a moment ago, have not been placed on tobacco products in Canada for the last four or five years, so this regulation is merely putting into law what is currently the standard practice in the tobacco industry in Canada today.

I would go on to say, however, that those terms do still appear on a number of contraband products that continue to flow off the first nation reserves and are sold throughout the country today, but in terms of the legal tobacco market, they're not used on tobacco products today.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Thank you.

I also have a question about the ingredients listed on tobacco product packaging. Figures used to be listed on the packs, and now an attempt is being made to have them removed.

Mr. Cunningham, do you think that people's health would be further harmed if there was no longer an official method for measuring toxic emissions?

[Rob Cunningham]

We now know that those figures are misleading because smoking machines were used to obtain the results. Humans don't smoke like the smoking machines used in the tests do.

Removing those figures is the current international trend. We see that happening more and more in many countries. There are international guidelines on that recommendation. That trend is the reason amendments are being made to regulations internationally.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Do you think those amendments will enable companies to get around reporting those toxic emissions?

[Rob Cunningham]

We can still request that companies conduct tests. They're still obligated to send test results to Health Canada. However, the amendments will eliminate the misleading information currently found on packaging. Companies can still conduct tests, but the information provided on the sides of cigarette packs will change.

[The Chair, Conservative, Joy Smith]

Thank you, Mr. Cunningham.

We'll now go to Mr. Brown.

[Patrick Brown, Conservative, Barrie, ON]

Thank you, Madam Chair.

The first general question is this: to what extent have you been working with Health Canada on the development of these labels, and how have you felt that your input has been heard? The question is for any of you four.